Allahabad High Court High Court

Arun Kumar Sinha vs State Of U.P. And Others on 25 January, 2010

Allahabad High Court
Arun Kumar Sinha vs State Of U.P. And Others on 25 January, 2010
Court No. - 19
Case :- WRIT - A No. - 22622 of 2007
Petitioner :- Arun Kumar Sinha
Respondent :- State Of U.P. And Others
Petitioner Counsel :- Nikhil Kumar
Respondent Counsel :- C.S.C.,S.N. Singh
Hon'ble Sunil Ambwani,J.

The petitioner requested and was given voluntary retirement as
Production Assistant from U.P. State Handloom Corporation Ltd.
on 30.11.2006 after receiving a cheque of Rs. 6, 32, 727/- dated
30.11.2006. The petitioner has filed this writ petition alleging that
40 month’s salary (the details of which have not been given) is still
due.

The U.P. State Handloom Corporation has filed a short counter
affidavit in which there is no clear admission of the dues of salary.
It is, however, stated that the Corporation is running into losses
and could not pay salary to its employees for the last about 40-50
months. The services of about 800 employees were retrenched and
about 800 employees have taken voluntary retirement under the
Voluntary Retirement Scheme. The liability towards the empoyees
is about 2.5 crores.

Shri Nikhil Kumar has relied upon the orders passed in Writ
Petition No. 62164 of 2009 dated 2.12.2009, in which this Court
held that the reasons, for which the Corporation was unable to pay
salary, may not be looked into by the Court as the amount is due
and the Corporation has to make efforts to pay the amount.

In Contempt Application (Civil) No. 3004 of 2008 Ram Niwas
Pandey vs. Chandrika Prasad Tiwari, Managing Director, U.P.
Handloom Corp. Ltd. this Court by its order dated 23.11.209
directed the State Government to either make available a sum of
Rs. 2.5 crores to the Corporation as interest free loan against the
proposed sale of unworkable assets of the Corporation, or all the
opposite parties including the newly added opposite parties shall
appear on the next date with their explanations and suggestions.

The Court is informed that Rs. 2.5 crore was paid by the State
Government as interest free loan to the Corporation. It is stated by
Shri Nikhil Kumar that there is admission of about 40 month’s
salary to all the employees including the petitioner and that Rs. 2.5
crores will also take care of this amount due to the petitioner.

In the affidavit of respondent nos. 3 and 4 showing cause to the
interim mandamus issued by the Court, it is admitted in para-4 that
the Corporation is running in losses and has not paid salary to its
employees for about 40 – 50 months. It is also admitted that though
the employees, who have opted for voluntary retirement have not
been paid the amount calculated in accordance with the voluntary
retirement scheme, but the arrears of salary of few months could
not be paid to them because of non-availability of funds.

In Writ Petition No. 1688/1999 filed by Employees Union of U.P.
State Handloom Corporation Ltd. in Lucknow Bench, the
Managing Director and the Principal Secretary were summoned
and that the question, whether the State Government is liable to
pay the dues of the employees of the Corporation, wholly owned
and controlled by the State Government, came up for hearing.
However, a direction was issued by the Court to the State
Government to provide funds to the Corporation for payment of
salary. Now since the amount of Rs. 2.5 crores has been paid as
interest free loan, this writ petition is liable to be partly allowed to
the extent that the respondents may decide payment of arrears of
salary to the petitioner taking into account the dues of salary to
other employees.

In the facts and circumstances of the case, a direction is issued to
the respondents to consider petitioner’s claim for 40 month’s salary
from out of Rs. 2.5 crores, which have been received by the
Corporation as interest free loan to be repaid on the sale of assets.
The petitioner’s claim shall also be decided and amount due from
out of Rs. 2.5 crores, without any interest, shall be paid to him
within a period of two months.

The Corporation will also file a counter affidavit giving the details
of the steps taken for rehabilitation/revival, if any, and the sale of
assets to clear the liabilities. The Corporation will also file the last
balance sheet so that the Court can give appropriate and effective
directions with regard to payment of salary. The Corporation will
also reply as to whether the retrenched employees and employees,
who have accepted the voluntary retirement are entitled to
payment of arrears of salary and during the period, for which
employees are claiming arrears of salary, they had actually
performed their duties. The interim mandamus shall be carried out
within two months and a counter affidavit will be filed within four
weeks.

List 15.3.2010.

Order Date :- 25.1.2010 RKP