Case Note & Summary
Background: The writ petition was filed by three primary teachers employed in a school run by the Panchayat Samiti Dahanu, against the Block Education Officer, Zilla Parishad Palghar, Commissioner of Education Maharashtra State, and State of Maharashtra, challenging withholding of their salaries for not opening National Pension Scheme (NPS) accounts. The matter arose under the civil appellate jurisdiction of the Bombay High Court. Facts: By letter dated 21 July 2022, the Chief Executive Officer of Zilla Parishad directed that salaries of teachers who had not registered or opened an account in NPS shall be withheld. Pursuant to that, Respondent No.1 issued letter dated 25 July 2022 directing Headmaster/Teachers to stop the petitioners' salaries. The petitioners made representations that NPS should not be made mandatory and salaries should not be stopped, but the representations were ignored. Their salaries were withheld from July 2022 without notice because they did not consent to contribute to NPS. The Government Order dated 19 September 2019 applying NPS did not make it compulsory and was optional; further, by letter dated 22 December 2021, the Commissioner of Education conveyed that no teacher or staff is to be forced to close GPF accounts and open NPS account, and salaries shall not be withheld or deducted. Despite this, authorities withheld salaries. After receiving notice of the petition, respondents disbursed salaries but deducted 10% and credited to NPS accounts, which petitioners alleged they were coerced into opening. Legal Issues: The core question was whether withholding salaries of teachers for refusing to switch from GPF to NPS is legally permissible, and whether such action violates Article 21 right to livelihood. Arguments: Petitioners contended NPS cannot be mandatory and their salaries cannot be stopped for non-consent; they had suffered hardship. Respondents appeared but no detailed justification was recorded in the judgment; their actions relied on letters directing withholding. Court's Analysis: The court held that right to livelihood is an integral part of Article 21 and cannot be subjected to individual fancies. The management having availed services cannot decline salaries; withholding salaries constitutes exploitation and deprivation of right to livelihood. The court noted the Government Order did not provide for mandatory NPS and the Commissioner's letter forbade coercion and withholding. Subordinate authorities ignored these instructions, which was arbitrary exercise of power. The court deprecated the action. Decision: The writ petition was allowed. Respondents were directed to disburse outstanding salaries within ten days from uploading of order. They were directed to pay 12% interest on amounts withheld from July 2022 till payment, with liberty to recover interest from salaries of concerned officers. No costs.
Headnote
A) Service Law - Salary Withholding - Right to Livelihood - Constitution of India, 1950, Article 21 - The writ petition challenged withholding of salaries of primary teachers from July 2022 for refusing to open National Pension Scheme accounts though they continued to render services. The court held that management having availed of services cannot decline salaries; withholding salary for period of duty without notice is arbitrary, amounts to exploitation, and deprives right to livelihood under Article 21. The court directed disbursal of outstanding salaries within ten days from uploading of the order (Paras 1-10). B) Service Law - National Pension Scheme - Optional Nature of NPS for Government School Teachers - Constitution of India, 1950, Article 21 read with Government Order dated 19 September 2019 - Government Order dated 19 September 2019 applying NPS to teaching and non-teaching staff of government and aided schools did not provide for compulsory application; the option was with teachers. Letter dated 22 December 2021 by Commissioner of Education prohibited forcing teachers to close GPF accounts and open NPS accounts, and directed that salaries shall not be withheld. Authorities disregarded these instructions and coerced teachers, which the court deprecated as arbitrary exercise of power (Paras 6-9). C) Service Law - Interest on Withheld Salary - Compensation for High-Handed Withholding - Constitution of India, 1950, Article 21 - Petitioners suffered considerable hardship due to non-receipt of monthly salaries from July 2022 till filing of petition while continuing to serve. The court directed payment of 12% interest on amounts withheld from July 2022 till date payments were made, with liberty to recover interest from salaries of concerned officers who directed and permitted withholding (Paras 11-12).
Issue of Consideration
Whether the respondent authorities could lawfully withhold the salaries of primary teachers for not registering or opening an account under the National Pension Scheme (NPS) despite a Government Order not making NPS mandatory and a communication from Commissioner of Education prohibiting such withholding; and whether such withholding violated the petitioners' right to livelihood under Article 21 of the Constitution of India.
Final Decision
Writ petition allowed. Respondents directed to disburse outstanding salaries to Petitioners within ten days from date of uploading of the order. Respondents directed to pay 12% interest to Petitioners on amounts withheld from July 2022 till date payments were made. Authorities at liberty to recover amount of interest from salaries of concerned officer/s who directed and permitted withholding. No costs.
Law Points
- Right to livelihood under Article 21 is integral part of right to life
- cannot be subjected to individual fancies of persons in authority
- withholding salary for services rendered without notice is arbitrary and unacceptable
- Government Order dated 19 September 2019 does not make National Pension Scheme mandatory for teachers of government and aided schools
- option lies with teachers
- Commissioner of Education's letter dated 22 December 2021 prohibits forcing teachers to close General Provident Fund accounts and open NPS accounts and prohibits withholding salaries
- subordinate authorities disregarding superior instructions is arbitrary exercise of power
- withheld salaries must be paid with 12% interest
- interest recoverable from salaries of defaulting officers.
