TMI Blog2005 (1) TMI 754X X X X Extracts X X X X X X X X Extracts X X X X ..... had been recommended for payment to the employees of most of the undertakings. Payment to Bihar State Sugar Corporation was said to be in the pipeline which came to be about Rs. 17 crores. It has been pointed out that BSIDC and units of other corporations in Jharkhand had not been paid yet and the Committee is left with Rs. 6 crores and odd. 3. An application for clarification has been filed by the Petitioner herein marked as I.A. No. 7 of 2004 wherein it has been prayed that the Jharkhand Hill Area Lift Irrigation Corporation Limited (JHALCO) be treated as successor of Bihar Hill Area Lift Irrigation Corporation (BHALCO) from 15.11.2000 onwards. It has further been contended that employees of Bihar Hill Area Lift Irrigation Corporation Ltd. would be absorbed by Jharkhand Hill Area Lift Irrigation Corporation Ltd., only if they forego their claim of salary for period prior to the respective dates of absorption. 4. A prayer therefore has been made to clarify the order dated 9th May, 2003 as to whether the State of Bihar or State of Jharkhand or both would be required to pay the unpaid salary to the employees of BHALCO. 5. Another interlocutory application being I.A. No. 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. Bihar State Electronics Development Corporation 4. Bihar State Sugar Corporation Limited 5. Bihar State Medicine and Chemical Development Corporation 6. Bihar State Fruit and Vegetables Development Corporation 7. Bihar State Agro Industries Corporation 8. Bihar State Textiles Corporation Limited 9. Bihar State Small Industries Corporation Limited 10. Bihar State Handlooms and Handicrafts Corporation 11. Bihar State Forest Development Corporation Limited 12. Bihar State Export Development Corporation Limited 13. Bihar State Construction Corporation Limited 14. Bihar State Bridge Construction Corporation Limited 15. Bihar State Police Building Construction Corporation Limited 16. Bihar State Water and Sewage Disposal Board 17. Bihar State Panchayati Raj Finance Development Corporation Limited 18. Bihar State Film Development and Finance Corporation Limited 11. It is, therefore, contended that in that view of the matter, no order was required to be passed under Section 65 in relation thereto. 12. It was further contended that eight companies, names whereof are notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st once in a month and submit a progress report to the Ministry of Home Affairs. 17. Mr. B.B. Singh, learned counsel appearing on behalf of the State of Bihar would submit that the State has no liability to pay the salaries of the employees of the statutory corporations/ companies incorporated under the Indian Companies Act. Reliance in this behalf has been placed on Steel Authority of India Ltd. and Ors. v. National Union Waterfront Workers and Ors. (2001)IILLJ1087SC and Electronics Corporation of India Ltd. and Ors. v. Secretary, Revenue Department, Govt. of Andhra Pradesh and Ors. AIR1999SC1734 18. The learned counsel would contend that the statutory corporations/ other public undertakings being not completely under the control of the State, the remedy of the employee, if any, is to file appropriate applications before the Company Judge before whom winding-up applications in relation to 18 companies have been filed or to approach the appropriate Industrial Court in that behalf. 19. In its order dated 9th May, 2003, this Court considered the matter from the human rights aspects as also the fundamental rights of the employees of the public sector undertakings operating in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter of enforcement of human rights and/or rights of the citizen of life and liberty, the State has also an additional duty to see that the rights of employees of such corporations are not infringed. The right to exercise deep and pervasive control would in its turn make the Government of Bihar liable to see that the life and liberty clause in respect of the employees is fully safeguarded. The Government of the State of Bihar, thus, had a constitutional obligation to protect life and liberty of the employees of the Government owned companies/corporations who are the citizens of India. It had an additional liability having regard to its right of extensive supervision over the affairs of the company. 23. As regards the statutory corporation, it was further noticed: In relation to statutory authority, the State had also the requisite power to issue necessary directions which were binding upon them, as for example, Section 79(c) of Electricity (Supply) Act. 24. This Court further observed that the State has a constitutional obligation and acts in a fiduciary capacity vis- -vis performance of its constitutional duties and functions by the public sector undertakings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount involved for payment of arrears of salaries and assets and liabilities divided have been shown in the following terms: 32. As regards BHALCO, it was contended that the approximate amount involved for payment of arrears and salaries is not available as the said corporation continues to be under the control of the State of Bihar. 33. It is true, as has been contended on behalf of the State of Jharkhand, that a new corporation named as JHALCO has come into being, but keeping in view of the fact that the State of Jharkhand itself has given option to the employees of BHALCO, the order of absorption of those employees who opt for employment may be passed at an early date and not later than six weeks from date. The concerned employees need not file any undertaking at this stage as the question as to whether the State of Jharkhand is liable to pay any salary and other emoluments to the employees of BHALCO is a question which would fall for decision in an appropriate proceedings. 34. Keeping in view of the fact that despite this Court's our order dated 9th May, 2003, five persons have lost their lives owing to non-payment of salaries and keeping in view of the order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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