Judgment 1. The payment of dues of public servants of a public body should not become such a hassle to tie the lowest employees into legal wrangles. The first was a set of employees of government companies and corporations, then employees of the government itself. Now, it appears another disease is coming to the fore, that is, employees of Municipal bodies. It has taken the court almost two years to require the Patna Municipal Corporation to take care of the unpaid employees. The orders of the court passed from time to time are on record. In between the State of Bihar and the Patna Municipal Corporation, they played games. On the one hand while they were telling the court that the due to the employees is being deposited, one of them was going to the Supreme Court only to have the Special Leave Petition dismissed. Ultimately, the Corporation or the State government did exactly what was to be done two years ago except that time added to the arrears. Five crores to be deposited became seven crores. After 31 March 2004 another set of payment may have to be deposited. Today, the Counsel for the Corporation acknowledges that the situation within the Corporation and its administration, is haphazard. 2. Counsel for the petitioners makes a statement that while now an exercise was set in motion to identify the employees to line them up from the date of their appointment and the work had started, the Chief Executive Officer is being posted out. This was also done when the court had directed that the employees of the Corporation have to be paid, identified and the agreed amount (between the Corporation and the State) is to be deposited, The court had ordered that the officers will not take their salary until the employees who are waiting their arrears of payment are paid. Instead of paying their salaries between the Corporation and the State government, they transferred the officers out. The same thing is being done again. Would not this be an interference in the administration of justice and frustrating a matter when the exercise to identify the employees and pay their arrears is mid way? This may be contempt. Instead of paying their salaries between the Corporation and the State government, they transferred the officers out. The same thing is being done again. Would not this be an interference in the administration of justice and frustrating a matter when the exercise to identify the employees and pay their arrears is mid way? This may be contempt. Now only that the matter has been to the Supreme Court on an unsuccessful challenge by the State government, not paying the arrears to the lowest employees is now taking an endemic form in Bihar. 3. On three occasions the Supreme Court has had to pass special orders in the matter relating to public corporations etc. requiring the State of Bihar to subsidize the relief by paying arrears of salaries or retiral dues. This shows the magnitude of the problem which is being faced by Class IV & Class III employees. The court is recording this for posterity as this is not such a simple solution to be resolved by one order. Pick up any organization as public body and the affairs stink. These are all about the financial matters. Everything appears to have collapsed in running of public bodies. 4. The Patna Municipal Corporation does not know who its employees are. Today, the Court is being told that about 70% of the employees have been located. this is scandalous. Friction is being created with the employees. Unless one identifies the employees, an employer cannot pay him and a public body does not know who the employees are nor would one know when they were recruited, chronologically. Unless all these facts and figures are available there will be questions that either the appointments have been made on fear or favour or an exercise is afoot to hide the employees who may have been recruited let us say for the present not bonafide. 5. Learned counsel for the Corporation is not in a position to inform the court as to when the accounts were last audited. The court is being told that the audit of 1997-98 is being initiated at present. However, whenever accounts may have been last audited prior to this period must be a matter of record and this record cannot disappear unless it is made to disappear. 6. The court is being told that the audit of 1997-98 is being initiated at present. However, whenever accounts may have been last audited prior to this period must be a matter of record and this record cannot disappear unless it is made to disappear. 6. One thing needs to be kept in mind that these are the arrears of salaries or retiral benefits when the Municipal Corporation had been superseded. The local self government was missing. The third tier of government had not been put in place despite the 73th and 74th amendments to the Constitution. The Municipality and the Corporations were being run by installed administrators. The responsibility, thus, lies and lay totally with the State government which superseded the Municipalities. The elected representatives will have to share their responsibility as from the date when they took charge. The other aspect will be that the State of Bihar will face criticism from the elected representatives on whatever went wrong within the Corporations when they were not incharge. 7. Today, the court indicated the counsel for the Corporation that the employees must await the list of employees to surface so that they can be paid by a system, that is, chronologically, and not to have the list itself leads to a presumption that there was no accountability in making payments. The easiest way out was not to make the payments. This, now, clearly has become a matter for audit and accounts. The Patna Municipal Corporation Act, 1951 specifically provides for audit and accounts. The State has been given the power of visitation under Chapter XXXII to seek any written statement, estimates, statistic or any other information regarding any matter under the control of any municipal authority and this includes a visitation in financial matters. The annual statement is about financial affairs which is to be prepared by the Chief Executive Officer. This is referred to in chapter IX of the Act. Specifically, it is section 114. If the law enjoins that the Chief Executive Officer shall at the end of each year prepare a statement on fiscal matters then what business does the Corporation and/or the State government has to transfer a Chief Executive Officer when the law obliges them to prepare a statement of accounts. Specifically, it is section 114. If the law enjoins that the Chief Executive Officer shall at the end of each year prepare a statement on fiscal matters then what business does the Corporation and/or the State government has to transfer a Chief Executive Officer when the law obliges them to prepare a statement of accounts. Thus, the Corporation and/or the State government is not only interfering with the administration of justice where an exercise has been put in motion to rectify all the defaults and fall in line to prepare accounts for audits, which is the requirement of the law. To obstruct in this is aiso obstruction with the law itself. 8. The court had called both counsel for the C.B.I, and the Union of India for the purpose of intimating the Accountant General, Bihar, and the Vigilance Department of the State government that the time has now come that an special audit be caused including an investigation into the financial affairs of the Patna Municipal Corporation. But the court will give one opportunity to the Corporation itself to fall in line now and normalize the situation within one week from today, and it does not a matter of it has to burn the mid night oil. This should be sufficient hint to the State government itself that the law has enjoined the Chief Executive Officer will cause a financial statement to be made for the year ending. The first time when it ignored the direction of the court, the court overlooked the matter. This time if it does so the Court will certify that the government is interfering with the law itself. 9. As from today, the court gives 8 days time to the Patna Municipal Corporation (a) to make out a list of employees who are to be disbursed the amount which lies in deposit with the Registrar General, Patna High Court and (b) the scheme on the basis of which there will be a disbursement. 10. It is acknowledged on behalf of the Patna Municipal Corporation that the expenditure to take care of the disbursement of the salary alone amounts to approximately 1.5 crores per month. This implies that it is about 18 crores per annum. How does the Patna Municipal Corporation disburse salaries when it does not know where its employees are? Put up on Wednesday next (24.3.2004) under the same heading. This implies that it is about 18 crores per annum. How does the Patna Municipal Corporation disburse salaries when it does not know where its employees are? Put up on Wednesday next (24.3.2004) under the same heading. A copy of this order be sent to the Law Secretary, Bihar.