Bombay High Court Allows Writ Petition of Non-Teaching Employees for Release of Salary Arrears Withheld Due to Criminal Complaint Against Institution's Office Bearers. Criminal Complaint Against Office Bearers in Personal Capacity Not a Ground to Withhold Employees' Salaries Under Grant-in-Aid Conditions.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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Case Note & Summary

The petitioners, non-teaching employees of Respondent No.4 institution, filed a writ petition seeking a mandamus directing the respondents to act upon an order dated 31/3/2009 and release their salary arrears from 2007-2008 onwards. The institution was eligible for 100% grant-in-aid since 2007-2008, but the salary grant was withheld due to a criminal complaint (FIR No.3345/2013) registered on 11/9/2013 against the office bearers of the institution under the Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, 1995. The respondents contended that one condition for release of salary grant was that there should be no pending prosecution or complaint against the institution. However, the court observed that the FIR was lodged against the Chairman of the institution in his personal capacity and not against the institution itself. The court held that a criminal act directed against office bearers does not constitute a ground for withholding salaries of employees. Additionally, the petitioners' counsel informed that Special Atrocity Case No.9/2014 against the chairman resulted in acquittal, and there was no pending criminal case or complaint against the institution or its office bearers. The court found the impugned action of withholding salary unjustified and directed Respondent Nos.2 and 3 to verify the claim of arrears from 2007-2008 to December 2017 and release the salary as expeditiously as possible, preferably within four months. The rule was made absolute with no order as to costs.

Headnote

A) Service Law - Salary Grant - Withholding of Salary - Criminal Complaint Against Office Bearers - The court considered whether salary grant to employees can be withheld due to a criminal complaint against office bearers in personal capacity - Held that a criminal complaint against office bearers in personal capacity is not a ground to withhold salaries of employees, especially when the complaint has resulted in acquittal - The court directed verification and release of arrears from 2007-2008 to December 2017 within four months (Paras 2-5).

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Issue of Consideration

Whether the salary grant payable to employees of an aided institution can be withheld on account of a pending criminal complaint against the office bearers of the institution in their personal capacity.

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Final Decision

Rule made absolute. Respondent Nos.2 and 3 directed to verify claim of arrears from 2007-2008 to December 2017 and release salary as expeditiously as possible, preferably within 4 months. No order as to costs.

Law Points

  • Salary grant cannot be withheld due to criminal complaint against office bearers in personal capacity
  • Criminal complaint against institution's office bearers not a ground to withhold employees' salaries
  • Withholding salary of employees is unjustified when complaint is not against institution
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Case Details

2018 LawText (BOM) (08) 66

Writ Petition No.6836 of 2016

2018-08-03

R.M. Borde, V. M. Deshpande

Mr.Saurabh Pakale i/b Mr. S.M. Katkar for the Petitioners, Mr.Sandeep L. Babar, AGP for the Respondent No.1 to 3

Shri Dilip Anandrao Pawar & Ors.

State of Maharashtra & Ors.

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Nature of Litigation

Writ petition seeking mandamus for release of salary arrears

Remedy Sought

Petitioners sought a writ of mandamus directing respondents to act upon order dated 31/3/2009 and release salary receivable from 2007-2008

Filing Reason

Salary grant withheld due to pending criminal complaint against office bearers of the institution

Previous Decisions

Order dated 31/3/2009 (not specified in text) and Special Atrocity Case No.9/2014 resulted in acquittal of chairman

Issues

Whether salary grant can be withheld due to criminal complaint against office bearers in personal capacity

Submissions/Arguments

Petitioners: Institution eligible for 100% grant since 2007-2008, salary not released due to criminal complaint; complaint against chairman in personal capacity, not institution; chairman acquitted in Special Atrocity Case No.9/2014; no pending case or complaint Respondents: One condition for release of salary grant is no pending prosecution or complaint against institution

Ratio Decidendi

A criminal complaint against office bearers of an institution in their personal capacity does not constitute a ground for withholding salaries of employees of the institution, especially when the complaint has resulted in acquittal and there is no pending case against the institution.

Judgment Excerpts

Since the alleged criminal act is directed against the office bearers of the institution that in itself shall not constitute ground for withholding salaries receivable by the employees of the institution. Considering the reasons as recorded above, we are of the opinion that impugned action of withholding the salary of employees of institution deserves to be quashed.

Procedural History

Petitioners filed Writ Petition No.6836 of 2016 in Bombay High Court seeking mandamus for release of salary arrears. Rule was issued and made returnable forthwith. By consent, petition taken up for final hearing. Heard on 3rd August 2018 and disposed of.

Acts & Sections

  • Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, 1995:
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