Case Note & Summary
The dispute arose from the claims of teachers employed in a Secondary School established by employees of an ordnance factory, seeking regularization of their services and equal pay for equal work. The Central Government had sanctioned a Primary School for the children of employees but had not sanctioned the Secondary School. The teachers were paid honorarium from school fees and donations, not by the Central Government. They approached the Central Administrative Tribunal, which directed the Government to assess the needs of the Secondary School and create posts for regular employment. The Union of India challenged this order in the Supreme Court. The Court found no evidence that the teachers were appointed by the Central Government or that they had any claim to regularization or pay scales applicable to Government school teachers. It held that the Tribunal lacked jurisdiction under the Administrative Tribunals Act, 1985 to issue such directions and that the Central Government's decision not to sanction the Secondary School was a policy matter that could not be compelled by the Tribunal. Consequently, the Supreme Court allowed the appeal of the Union of India, set aside the Tribunal's order, and dismissed the teachers' claims.
Headnote
A) Administrative Law - Jurisdiction of Administrative Tribunal - Authority to deal with service matters - Administrative Tribunals Act, 1985, Section 14 - The Tribunal lacked jurisdiction to regularize services of teachers not appointed by the Central Government and could not compel the Government to create posts for a Secondary School. Held that the directions issued by the Tribunal were unjustified and without authority of law (Paras 688H-689A). B) Employment Law - Employment Relationship - Master and Servant Relationship - The respondents were not employees of the Central Government but were appointed by local officers, thus no master-servant relationship existed. The Court held that the Central Government was not accountable for the employment arrangement made by local officers (Paras 688G). C) Policy Matters - Government Policy on Education - The Central Government decided not to sanction or run classes beyond the Primary School level, which is a policy matter involving financial burden. The Court held that no court or Tribunal could compel the Government to change its policy regarding expenditure (Paras 688D-E).
Issue of Consideration
Whether the Central Administrative Tribunal had the authority to compel the Central Government to assess needs and create posts for a Secondary School not sanctioned by the Government.
Final Decision
The Supreme Court allowed Civil Appeal No. 233 of 1991, set aside the order of the Tribunal, and dismissed Civil Appeal No. 480 of 1989. No order as to costs was made.
Law Points
- Administrative Tribunal jurisdiction
- employment relationship
- policy matters
- service regularization
- pay scale claims


