Statutory takeover of a medical college displaced contractual service tenure; the State could redetermine superannuation and terminate ad hoc staff.
On takeover of a private medical college under the Bihar Private Medical Colleges (Taking Over) Act, 1978, a teacher's contractual claim to continue until age 62 did not survive the statutory scheme. Section 3 vested the college's assets and obligations in the State, while section 6 specifically governed the post-takeover position of teaching staff and other employees. Once the notified order took effect, staff ceased to be employees of the college body and were continued only on an ad hoc basis pending State decision. The State's power under section 6 to redetermine service conditions was held wide enough to cover superannuation age, and termination of the ad hoc service was valid.
Issues: Whether, on the taking over of the private medical college under the Bihar Private Medical Colleges (Taking Over) Act, 1978, the respondent's contractual right to continue in service until the age of 62 years survived, and whether the State Government could validly terminate his service by redetermining the conditions of service under section 6.
Analysis: Section 3 provided for takeover of the college, vesting of its assets and transfer of its liabilities and obligations, but section 6 specifically dealt with the teaching staff and other employees after takeover. On the date of the notified order, all staff ceased to be employees of the college body and were continued only on an ad hoc basis until the State Government took a decision. In that setting, the earlier contractual tenure could not be enforced as against the statutory scheme. The power given under section 6 to determine and redetermine rank, pay, allowances and other conditions of service was wide enough to include age of superannuation, and the State Government was also entitled to terminate ad hoc service.
Conclusion: The respondent had no enforceable right to continue until 62 years, and the termination of his service was valid.
TaxTMI 
AI Drafter ✕
TaxTMI 
