STATE OF MAHARASHTRA AND OTHERS versus NOWROSJEE WADIA COLLEGE AND OTHERS

Citation: [2013] 4 S.C.R. 303 · Decided: 29-01-2013 · Supreme Court of India · Bench: G.S. SINGHVI · Disposal: Appeal(s) allowed

Judgment (excerpt)

[2013] 4 S.C.R. 303 
STATE OF MAHARASHTRA AND OTHERS 
A 
v. 
NOWROSJEE WADIA COLLEGE AND OTHERS 
(Civil Appeal Nos. 531-532 of 2013) 
JANUARY 29, 2013. 
[G.S. SINGHVI AND H.L. GOKHALE, JJ.] 
Se1Vice Law: 
B 
Leave encashment benefit -
To the teachers of Pune c 
University employed with Government affiliated colleges -
Provided by the statutes 424(3) and 424(C) of University of 
Pune framed under Poona University Act, 1974 - Enactment 
of Maharashtra Universities Act, 1994 resulted in repeal of 
1974 Act - Instruction by Government to Universities to 
D 
discontinue benefit of leave encashment - State a/so directed 
the University to amend the University statutes with 
retrospective effect and till then to bear expenses incurred in 
payment of leave encashment - Statutes 424(3) and 424(C) 
not modified or superseded - Directions of the State 
E 
challenged by institutes before High Court seeking 
mandamus to reimburse the amount paid by them to the 
teachers by way of leave encashment - High Court directed 
the State to reimburse the amount - On appeal, held: Though 
the 197 4 Act entitle the teachers of affiliated colleges the 
benefit of leave encashment, but neither the 1974 Act nor the 
1994 Act oblige the State to extend this benefit - Merely 
because the University statute provides for the benefit, it does 
not entitle the University/College to claim reimbursement from 
F 
the State as of right - The State was also justified in issuing 
directives to the Universities to amend their statutes -
G 
Maharashtra Universities Act, 1994 -
s. 115 - Poona 
University Act, 1974 - Statutes of Pune University- Statutes 
424(3) and 424(C). 
303 
H 
304 
SUPREME COURT REPORTS 
[2013] 4 S.C.R. 
A 
The question for consideration in the present 
appeals was whether the respondent-institution (College) 
in question was entitled to reimbursement, from the State 
Government, of the amount paid to the teachers by way 
of leave encashment under the statutes framed by the 
B Pune University. 
The State Government contended that the State is not 
obliged to reimburse the amount because neither the 
Poona University Act, 1974 nor any other enactment 
mandates the reimbursement; and that in terms of rr.52 
C and 54 of Maharashtra Civil Services (Leave) Rules, 1981, 
the teachers employed in the Government colleges are 
not entitled to the benefit of leave encashment; and if 
teachers employed in private colleges are held entitled to 
the benefit of leave encashment, it would amount to 
D discrimination. 
Respondent Nos.1 and 2 contended that in vie_w of 
s.115(2) of Maharashtra Universities Act, 1994, the 
existing statutes and Ordinances made under the A<:t 
E specified in sub-section (1) of s.115, would be deemed to 
have been saved because the University had not framed 
fresh statutes or repealed the existing statutes. 
Allowing the appeals, the Court 
F 
HELD: 1. An analysis of the provisions of the 
Universities Act, 1994 shows that universities constituted 
under Section 3(1) are autonomous and they are, by and 
large, independent in their functioning. However, the 
State Government can exercise control in some matters 
G including those which have financial implications and 
issue directives which are binding on the universities. No 
university can grant special pay or allowance or extra 
remuneration to the employees except with the prior 
approval of the State Government. Likewise, any de~ision 
H regarding affiliated colleges resulting in additional 
STATE. OF MAHARASHTRA v. NOWROSJEE WADIA 305 
COLLEGE 
financial liability can be taken only after obtaining 
A 
approval from the State Government. By virtue of Section 
115(2)(xii) of 1994 Act, the statl.!tes framed by various 
universities prior to the enforcement of the 1994 Act, were 
continued till their supersession or modification by the 
statutes made under the new Act. [Para 16] [327-G-H; 328-
B 
8-C, D-E] 
2. The provisions contained in the Maharashtra Civil 
Services (Leave) Rules, 1981 are not applicable to the 
university teachers and the teachers of the affiliated 
colleges because they are not Government servants, but C 
this cannot lead to an inference that the affiliated 
colleges are entitled to reimbursement-0f the ltmount paid 
to the teachers in lieu of earned :leave.··Though the 
statutes framed by the Pune University under the Poona 
University Act, 1974 entitle. the teachers of the affiliated 
D 
colleges to get the benefit of leave encashment, there is 
no

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