Case Note & Summary
The petitioners, Shikshakbharati and Mumbai Teachers Democratic Front, are unions representing teachers in aided schools in Maharashtra. They challenged Government Resolution dated 30th June 2017 issued by the State of Maharashtra, which directed that salaries of teachers of aided schools be paid through Mumbai District Central Cooperative Bank Limited. The petitioners argued that this resolution was arbitrary and violated the statutory provisions of the Maharashtra Employees of Private Schools (Conditions of Service) Regulation Act, 1977 and the Maharashtra Right to Education Rules, 2012, which do not mandate payment through a particular bank. They contended that teachers have the right to choose the bank where their salaries are credited. The respondents, including the State of Maharashtra and the bank, defended the resolution as a measure to streamline salary payments and ensure transparency. The court, after hearing arguments, examined the relevant statutory provisions and found that neither the Act nor the Rules empower the government to direct payment of salaries through a specific bank. The court held that the Government Resolution was ultra vires and arbitrary, as it interfered with the teachers' right to choose their bank. The court quashed and set aside the Government Resolution dated 30th June 2017, allowing the petitions. The court did not impose any costs.
Headnote
A) Service Law - Payment of Salaries - Government Resolution - Validity - The Government Resolution dated 30th June 2017 directing that salaries of teachers of aided schools be paid through Mumbai District Central Cooperative Bank Limited was challenged by teachers' unions. The court held that the Government Resolution cannot override the provisions of the Maharashtra Employees of Private Schools (Conditions of Service) Regulation Act, 1977 and the Maharashtra Right to Education Rules, 2012, which do not mandate payment of salaries through a particular bank. The court found that the Government Resolution was arbitrary and violative of the rights of teachers to receive their salaries in a bank of their choice. (Paras 1-10) B) Service Law - Right to Choose Bank - Statutory Interpretation - The court interpreted Section 5 of the Maharashtra Employees of Private Schools (Conditions of Service) Regulation Act, 1977 and Rule 12 of the Maharashtra Right to Education Rules, 2012, and held that these provisions do not empower the government to direct payment of salaries through a specific bank. The court emphasized that teachers have the right to choose the bank where their salaries are credited. (Paras 5-8) C) Administrative Law - Government Resolution - Ultra Vires - The court held that the Government Resolution dated 30th June 2017 was ultra vires the powers of the government under the relevant statutes and rules. The resolution was quashed and set aside. (Para 10)
Issue of Consideration
Whether the Government Resolution dated 30th June 2017 directing that salaries of teachers of aided schools be paid through Mumbai District Central Cooperative Bank Limited is legal and valid.
Final Decision
The court quashed and set aside the Government Resolution dated 30th June 2017. The petitions were allowed. No order as to costs.
Law Points
- Government Resolution cannot override statutory provisions
- Payment of salaries through a particular bank without consent of employees is impermissible
- Right of teachers to receive salary in bank of their choice
- Section 5 of Maharashtra Employees of Private Schools (Conditions of Service) Regulation Act
- 1977
- Rule 12 of Maharashtra Right to Education Rules
- 2012





