Birla Institute Of Technology vs The State Of Bihar &Amp; Ors on 27 January, 2011

Patna High Court – Orders
Birla Institute Of Technology vs The State Of Bihar &Amp; Ors on 27 January, 2011
                                      CWJC No.13030 of 2002
                          BIRLA INSTITUTE OF TECHNOLOGY .
                                THE STATE OF BIHAR & ORS .

For the Petitioner : Mr.Jitendra Singh, Sr.Adv.
Mr. Rajiv Kumar Singh and Mr. Harsh Singh.

32 27.1.2011 This dispute before this Court, in fact, is no dispute. It

has been uselessly pending in this Court for now a decade.

Whatever may have been the attitude of the State of Bihar and

the State of Jharkhand, much water has flown in Ganges and

Damodar since then. The petitioner is extensively the Birla

Institute of Technology, a premier institute set up at Ranchi long

time ago. It is not in dispute that the State of Bihar got certain

preferential treatment by the said institute for which it was

under obligation to pay certain amounts to the institute , as given

in aid. The liability of the State of Bihar is not in dispute and

it is also not in dispute that the amount being claimed by the

institute is only up to the period of bifurcation of the State i.e. up

to 14.11.2000 . In this view of the fact it is clear that the

provisions of the Bihar Reorganization Act would have no

application at all. Prima facie the liability up to 14.11.2000

would be fairly and squarely upon the State of Bihar . This

settled one major issue. Now is the question of quantifying of

this liability. In Annexure 10 to the supplementary affidavit, the

petitioner has given total amount claimed. It is in two parts.

First, it is in respect of an amount of Rs. 3.58 crores and then is a

claim of Rs. 4.72 crores.


So far as the first amount of Rs. 3.58 crores is

concerned, there are several documents of the State of Bihar ,

which clearly admits this entire liability. None of the parties

dispute that out of this amount of this, by Bihar State

Government Order dated 1.11.2000 , an amount of Rs. 1.58

crores have already been paid. Thus, the admitted amount of Rs.

2 crores are yet to be paid. The stand of the Bihar is that upon

the State of Jharkhand paying the balance Rs. 2 crores to the

institute, State of Bihar would reimburse State of Jharkhand to

that extent by adjustment through the Accountant General. So

far as this is concerned, what ever may have been the reason for

taking this peculiar stand earlier, I am sure that it does not

subsist any more. Once State of Bihar admitted its liability to the

institute for this balance of Rs. 2 crores, the institute cannot be

put in nebulous position of adjustment of account. Thus this

Court finds that the State of Bihar having admitted the

liability, must pay the amount of Rs. 2 crores directly to the

institute without any further delay . This amount, the State of

Bihar had agreed to liquidate by February, 2001 as per their

own showing.We are approaching February, 2011, it does not

reflect good on a State like the State of Bihar to hold back

financial aid to an educational institute for such a long time.

Let this amount be paid to the institute forthwith and

not later than close of this financial year.

Now we come to the second part of the claim amount

to Rs. 4.72 crores. This amount is also due and claimed as

payable by the State of Bihar appertaining to its share of liability

prior to 15.11.2000. It is stated on behalf of the petitioner that

for the financial year 1998-1999, the total amount due from the

said was Rs. 1.408 crores, out of which 0.135 crores was ordered

to be paid as in the preceding paragraph. Thus there is a balance

of Rs. 1.273 crores for this year. Similarly, for the year 1999-

2000, the total liability of the State of Bihar was Rs. 1.72 crores,

out of which Rs. 0.135 crores were accounted for a year to be

paid as in the preceding paragraph . This leaving balance of Rs.

1.5865 crores. For the part of the financial year 2000-2001 (upto

14.11.2000), the total amount payable by the State of Bihar is

Rs. 1.861 crores. The balance is payable by the State of

Jharkhand for which no claim is being raised against the State

of Bihar. Thus, the total amount payable is about Rs. 4.7214

crores. There does not appear to be any concrete stand of the

State of Bihar as against this claim. There is neither denial nor

unequivocal acceptance ,as noted above, much water has flown

in Ganes and Damodar since then and probably the State of

Bihar would come up and settle this matter and not throw its

liability on the State of Jharkhand or deny the liability at this late

stage to delay the payment any more unless there are

compulsive justifiable reason for the same .Thus, in view of this

issue involved, no issue of law, which requires adjudication by

this Court .

In view of the facts ,as noted above, to me it appears

that the State of Bihar through its Chief Secretary and Secretary,

Department of Science and Technology concerned with the

funding of the institute would sit down with the authorized

officer nominated by the institute within fortnight from today.

They would discuss/deliberate and without breaking heads,

quantify the liability of the State of Bihar in respect of the

second part of the claim of Rs. 4.7214 crores balance. There

will be no extension of this time limit. Both the parties must give

all relevant papers and discuss the matter once for all. A

consensus should be reached and this Court be informed on

14.2.2011 with regard to the aforesaid Rs. 4.72 crores . It may

be pointed out that whatever liability be, it would have to be

liquidated by the State of Bihar within this financial year also.

That must be kept in mind by the State of Bihar.

Put up under the same heading as a first case on


Singh                             ( Navaniti Prasad Singh, J.)

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