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Patna High Court · body

2004 DIGILAW 390 (PAT)

Suo Motu action relating to class of persons who have not received their salaries v. State of Bihar

2004-04-06

body2004
ORDER 1. Reports of the Justice Uday Sinha Committee at Falags G1, H1, I1, J1, K1, L1, M1, N1, 01, & P1 have been received and placed before the court. The recommendations are acceptade. The disbursements be made. 2. Re. Flag G1 dated 22.3.2004 (Bihar State Sugar Corporation Ltd. Banmankhi Unit (Purnea) payment of Rs. 1,64,66,908.00 has been recommended. In addition it has been recommended that deposit or Rs. 22,22,805.00 be made with the Commissioner of Employees Provident Fund for crediting to the individual account of the employees. 3. The recommendation has been made for payment to 67 employees who have either retired or died in harness. The amount payable as a net payment to retired/deceased employees is Rs. 13,39,395.00 and the amount to be deposited with the employees provident fund is Rs. 1,92,907.00. 4. Re. Flag H1 dated 22.3.2004 (Bihar State Sugar Corporation Ltd. Sugauli Unit (Motihari) the payment recommended to employees is Rs. 1,24,8,999.00. Additional Payment recommended for deposit before the Commissioner Employees Provident Fund is Rs. 3,26,213.00. 5. To the 10 retired/dead employees the payment recommended is Rs.2,12,339.00. In addition the deposit with the Commissioner Employees Provident Fund is Rs. 4,170.00 to be credited to the individual accounts of these employees. 6. Rs. Flag 11 dated 22.3.2004 (Bihar State Sugar Corporation Ltd. Unit Hathua (Gopalganj) the payment recommended to employees is Rs. 2,09,09,414.00. In addition Rs. 39,56,498.00 has been recommended to be deposited with the Commissioner of Employees Provident Fund for crediting to the individual accounts of individual employees. 7. To the retired/dead employees Rs. 16,19,297.00 has been recomended. Additional payment of Rs. 3,32,134.00 has been recomended to deposit with the Commissioner of Employees Provident Fund for crediting to the individual accounts. 8. Re. Flag J1 dated 22.3.2004 (Bihar State Sugar Corporation Ltd. Unit Sakri (Madhubani) recommendation for payment of Rs. 71,60,866.00 has been made to the regular employees towards pay and dearness allowance. In addition recommendation to deposit Rs.32,899.00 with the Commissioner of Employees Provident Fund to be credited to the individual accounts of the employees has been made. 9. To the retired/dead employees Rs. 9,53,683.00 has been recommended towards their pay and dearness allowance. 10. Re. Flag K1 dated 24.3.2004 (Bihar State Sugar Corporation Ltd. Unit Ryam (Darbhanga) recommendation of Rs. 95,68,445.00 has been made for payment to 552 regular employee. 11. To the 145 dead/retired employees recommendation has been made for payment of Rs. 9. To the retired/dead employees Rs. 9,53,683.00 has been recommended towards their pay and dearness allowance. 10. Re. Flag K1 dated 24.3.2004 (Bihar State Sugar Corporation Ltd. Unit Ryam (Darbhanga) recommendation of Rs. 95,68,445.00 has been made for payment to 552 regular employee. 11. To the 145 dead/retired employees recommendation has been made for payment of Rs. 21,81,022.00. 12. Re Flag L1 dated 25.3.2004 (Bihar State Sugar Corporation Ltd. Unit Lohat (Madhubani recommendation for payment of Rs. 1,26,88,974.00 towards pay and dearness allowance to the existing 886 employees has been made. In addition recommendation to deposit of Rs. 7,25,550.00 with the Commissioner of Employees Provident Fund to be credited against the individual accounts of these employees has been made. 13. To the retired/dead employees Rs. 9,44,552.00 has been recommended to be paid. In addition recommendation to deposit of Rs. 59,404.00 with the Commissioner of Employees Provident Fund to be credited to the individual accounts of these 81 employees has been made. 14. Re. Flag M1 dated 26.3.2004 (Bihar State Sugar Corporation Ltd., Unit Samastipur) recommendation has been made for payment of Rs. 93,71,485.00 towards pay and dearness allowance since March 1992 to April 1994. 15. To the 142 dead/retired employees Rs. 13,89.002.00 towards pay and dearness allowance for two years since April 1992 to March 1994 as interim relief has been recommended. 16. Re. Flag N1 dated 26.3.2004 (Bihar State Sugar Corporation Ltd., Unit Warisaliganj (Nawadha) payment is recommended towards pay and dearness allowance of two years from January 1992 to December 1993 of an amount of Rs. 43,23,209.00 and further payment of Rs. 10,56,316.00 with the Commissioner of Employees Provident Fund to be credited to the individual accounts of these 490 employees. 17. To the 108 deceased/retired employees Rs. 6,64,163.00 has been recommended. In addition Rs. 1,62,999.00 has been recommended to deposit with the Commissioner of Employees Provident Fund to be credited to the individual accounts of these employees. 18. Re. Flag 01 dated 31.3.2004 (Bihar State Sugar Corporation Ltd. Unit Siwan) recommendation for payment of Rs. 71,09,229.00 for 2 years pa and dearness allowance since April 1992 to March 1994 as interim relief to the 647 regular employees has been made. In addition recommendation to deposit of Rs. 9.91,662 with the Commissioner of Employees Provident Fund for crediting the amounts towards the individual accounts of the employees has been made. 71,09,229.00 for 2 years pa and dearness allowance since April 1992 to March 1994 as interim relief to the 647 regular employees has been made. In addition recommendation to deposit of Rs. 9.91,662 with the Commissioner of Employees Provident Fund for crediting the amounts towards the individual accounts of the employees has been made. One employee Sri Syed Akbar Imam, Helper, has been recommended for payment of Rs. 30,000/-. 19. To the 50 retired/dead employees Rs.6,50,619.00 has been recommended towards interim relief for 2 years pay and dearness allowance calculated from April 1994 to April 1996 except that of January, 1995. In addition recommendation to deposit of Rs. 98,367.00 with the Commissioner of Employees Provident Fund for crediting to the accounts of the individual employees has been made. 20. Re. Flag P1 dated April 2004 (Bihar State Sugar Corporation Ltd. Unit Lauria (West Champaran) payment of Rs.1,25,89,051.00 to 1121 regular employees towards their pay and dearness allowance for two years calculated from February 1997 to January 1999 as interim relief recommendation has been made. In addition recommendation to deposit of Rs. 31,90,392.00 with the Commissioner of Employyes Provident Fund for crediting the individual amounts towards the individual accounts of these employees has been made. 21. To the 79 retired/dead employees Rs. 9,67,632.00 towards pay and dearness allowance for two years from February 1997 to January 1999 as interim relief has been recommended. In addition recommendation to deposit Rs.1,55,496.00 with the Commissioner of Employees Provident Fund for crediting the individual amounts towards the individual accounts of 79 employees has been made. 22. I.A. No. 1944 of 2004 filed by the Central Bureau of Investigation. 23. The Central Bureau of Investigation (CBI) has filed an interlocutory application (I.A. No. 1944 of 2004). In effect, the CBI desires that it be permitted to withdraw its earlier interlocutory application (IA. No.270 of 2004). This is permitted and this application stands consigned. 24. The CBI has given reasons for withdrawing the earlier application and filing the present one. It is stated that the CBI will conduct a full-fledged inquiry. Reasons given are in paragraph 4. The basic reasons given amongst many others are in paragraph 7 of the interlocutory application. 25. The submission of the Central Bureau of Investigation, if the matter is looked at objectively, is reasonable. It is stated that the CBI will conduct a full-fledged inquiry. Reasons given are in paragraph 4. The basic reasons given amongst many others are in paragraph 7 of the interlocutory application. 25. The submission of the Central Bureau of Investigation, if the matter is looked at objectively, is reasonable. In the normal course, the CBI is not meant to see onslaught of investigation the like of which they are facing in Bihar. Financial irregularities committed in matters relating to running of State Public Sector Undertakings has, in fact, become a phenomena. Every cannon of law in the corporate world which applies to State government companies also has been violated. Statutory obligations have been thrown to the wind. The State government companies or Corporations have in fact, grounded their business and functions so much so that a special committee under directions of the Supreme Court is examining disbursement of payment to employees who hitherto have not been paid their salaries for the last ten years. These include retired employees claiming pensions and the heirs of the dead, arrears of pay and pension both. The payments are now being made at the expense of the State exchequer for the defaults and the misdemeanor, which may have been committed by the bureasucrats in running the State companies and corporations. Investigating one default of a State Public Sector undertaking or a handful may be in the normla course of business of the CBI. But a whole lot with a few exceptions is a mass scale violation of the Companies Act, 1956. These State Corporations had been incorporated and registered as Government Companies under section 617. In the circumstances, the court recommends increase of strength for the CBI for the inquiries and investigation which will be caused in these matters of State Corporations within Bihar. 26. These are matters of public audit and accounts and whoever ran the government whenever time it was done the blame will lie on the State of Bihar. The executive and the bureaucracy cannot escape the investigation regardless of rank or position. The CBI is carrying out a public investigation. The State of Bihar is obliged to provide the CBI special accommodation it needs and this suggestion is also recommended. 27. In so far as access to papers are concerned, nothing will stand in the way of the CBI. The CBI is carrying out a public investigation. The State of Bihar is obliged to provide the CBI special accommodation it needs and this suggestion is also recommended. 27. In so far as access to papers are concerned, nothing will stand in the way of the CBI. It shall have access to every record in these matters, regardless where they lie. 28. On behalf of the Chairman, Finance (Bureau of Public Enterprises) Department, Bihar, Patna a counter affidavit has been filed. The counter affidavit contains certain enclosures. In addition, the State Counsel S.C. IV, states that the volumes wrapped in four bundles one in red cloth and three in white are being filed in the court. It has been explained by the State Counsel that these are papers which are being filed in compliance of- the orders of the court dated 5 November 2003 and 13 November 2003. 29. Better late than never these be brought on record and sent to the Registrar General. As these are basic informations, it will be required for the purpose of public audit or returns which are to be examined by the Registrar of Companies/Company Law Board and the CBI. These records will be available to these authorities. In so far as the CBI is concerned, it will be entitled to have copies lifted upon a request being made to the Registrar General. 30. Let a copy of this order be given to the Counsel for the Central Bureau of Investigation and the State Counsel (S.C.IV).