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Nutan Bharti Gram Vidyapith vs Government of Gujarat & Anr.

Not available · 2024 INSC 935Decided 2 Dec 2024
Not available
Justice J.K. Maheshwari · Justice Rajesh Bindal

Background

The appellant is a private college covered under Gujarat's Grant-in-Aid scheme. It had dismissed a lecturer (respondent no. 2) in 1994 after a disciplinary inquiry found 10 of 30 charges against him proved. The appellate authority found the charges established were relatively trivial and that dismissal was too harsh a punishment, though it did not order reinstatement outright. A dispute then arose over who, the college or the State, was liable to pay the employee's retiral benefits, and the Gujarat High Court's review proceedings went against the college.

Decision Breakdown

The Supreme Court examined the Grant-in-Aid Scheme and held it contains no exception allowing the State to shift the burden of an employee's retiral benefits onto the institution merely because the institution defended its disciplinary action or lost before the appellate authority. It distinguished a precedent relied on by the State, noting that case involved a dismissal found to be wholly without jurisdiction, which was not true here: the college had validly conducted a disciplinary inquiry with 10 charges proved. The Court allowed the college's appeal, set aside the High Court's order, and held that the State (not the college) is liable to pay the employee's retiral dues.

Lesson Learnt

Under a Grant-in-Aid scheme, the State remains responsible for an employee's retiral benefits unless the educational institution's disciplinary action is shown to be wholly without jurisdiction: merely losing a disciplinary dispute or defending it in court does not automatically shift that financial burden onto the institution.

Official source (sci.gov.in)View Judgment (PDF)

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