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2015 DIGILAW 585 (JK)

J&K State Financial Corporation v. Mohd. Akbar Mir

2015-11-16

BANSI LAL BHAT, N.PAUL VASANTHA KUMAR

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JUDGMENT : N. Paul Vasantha Kumar, J. 1. This appeal is directed against the order dated 08.09.2003 made in SWP No. 588/2003 wherein the respondents prayed for Higher Standard Pay Scale Scheme which was ordered as per SRO 14 of 1996, dated 15.01.1996 issued by the State Government. The learned Single Judge allowed the writ petition on the basis of SRO 133 of 2001 dated 30.03.2001 with a further direction to release the benefits within three months. The said order is challenged in the appeal by contending that since the State Financial Corporation is not a Department of the Government and it is incurring heavy loss, it cannot be burdened with the payment of Higher Standard Pay Scales Scheme to the respondents and the State Financial Corporation Act contemplates a decision to be taken by the Board of Directors and the Board of Directors in its meeting held on 22.11.2002, while considering the no objection granted by the Small Industries Development Bank of India, resolved to defer the consideration of payment of Higher Standard Pay Scale Scheme to the employees of the Corporation for the time being in view of the weak financial position of the Corporation. 2. Mr. Jahangir Iqbal Ganai learned Advocate General heavily relied upon the said ground and contended that in view of the weak financial position of the Corporation, the learned Single Judge was not right in allowing the writ petition. 3. We have considered the submissions advanced by learned Advocate General. 4. It is not in dispute that vide SRO 14 of 1996, dated 15.01.1996, the State Government has ordered higher standard pay scales scheme to the employees of State Government. The State Government on the recommendations of the Board of Directors of J & K State Financial Corporation accorded its sanction for introduction of higher standard pay scale scheme to the employees of the State Financial Corporation and taking note of the said recommendations, vide SRO 133, dated 30.03.2001 ordered to pay the Higher Standard Pay Scheme to the employees of the J & K State Financial Corporation. The said SRO reads as follows: "SRO-133 In exercise of the powers conferred under section 48 of State Financial Corporation Act, 1951 (Central Act LXIII of 1951) and as agreed to by the Industrial Development Bank of India and recommended by the Board of Directors of Jammu and Kashmir State Financial Corporation, the State Government accord its sanction to the introduction of Higher Standard Pay Scheme and other allied benefits to the employees of the Jammu and Kashmir State Financial Corporation on the same terms and conditions as contained in SRO 14 dated 15.01.1996, sanctioning Higher Standard Pay Scale Scheme to the employees of the State Government". 5. From the perusal of the above recommendations which were accepted by the State Government and order having been issued, it is not open to the appellant to contend that the Board of Directors has decided to defer the decision. The decision to grant Higher Standard Pay Scales having been recommended by the Board of Directors, which was accepted by the State Government and an order having been passed to that effect, the respondents are justified in demanding the Higher Standard Pay Scales which were rightly ordered by the learned Single Judge. There is no error in the judgment of learned Single Judge requiring interference by this Court. Hence, the appeal is dismissed. No costs.