Bihar State Ardh Sarkari Arajpati Karamchari Maha Sangh v. State of Bihar
Background
Following the 2000 reorganisation of Bihar into Bihar and Jharkhand, employees and workmen of five defunct state-owned corporations had long-pending, unresolved dues. A court-appointed Committee (headed by a retired Supreme Court judge) had earlier recommended how liabilities should be apportioned between the two states, which the Court accepted in a May 2026 order. This judgment reviews the states' compliance affidavits reporting on disbursement progress.
Decision Breakdown
The Court found the states of Bihar and Jharkhand had substantially, though not fully, complied with its earlier directions, and disposed of the writ petition with a comprehensive set of final directions: the states must complete pending disbursements and give untraced employees or their legal heirs 12 months to come forward and claim dues; publish detailed, updated particulars of paid and pending claims on official websites within four weeks; pay a one-time ₹1,00,000 to affected daily-wage workers; and pay interest, 12% per annum on delayed EPF dues and 6% per annum on delayed salary/wages, within three months. The Court clarified these reliefs were specific to this case's extraordinary facts and not a general precedent.
Lesson Learnt
In long-running, complex litigation involving apportioned government liabilities across states, the Supreme Court can use a mechanism like a retired-judge committee plus periodic compliance affidavits to bring genuine finality, including firm timelines, transparency obligations, and interest for delayed payment, rather than leaving matters open-ended.