TaxTMI 
TaxTMI 
2005 (1) TMI 754
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....usal whereof it appears that a sum of Rs. 25,98,65,883.00 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. ....
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....ent Corporation 2. Bihar State Leather Development Corporation 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 ....
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....tion as inter-State Corporations in the States of Bihar and Jharkhand. Accordingly, it was decided to divide the shares of these Corporations as well as the representation of the two States in their respective Board of Directors." 16. A Committee has also been constituted for monitoring the progress of implementation of orders passed by the Central Government comprising of the Chief Secretary, Bihar or his/ her nominee and Chief Secretary, Jharkhand or his/her nominee. The said committee is required to meet at least 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 corporatio....
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....The Government companies/public sector undertakings being 'States' would be constitutionally liable to respect life and liberty of all persons in terms of Article 21 of the Constitution of India. They, therefore, must do so in cases of their own employees. The Government of the State of Bihar for all intent and purport is the sole shareholder. Although in law, its liability towards the debtors of the Company may be confined to the shares held by it but having regard to the deep and pervasive control it exercises over the Government companies; in the matter 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....
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....rative part of the report of the Committee. 30. It would appear therefrom that the directions of this Court could not be complied with having regard to the fact that only six crores were left with the Committee. Before us a chart has been submitted showing the approximate amount involved for payment of arrears of salaries in relation to the following corporations: 31. It has further been placed before us that as regards Bihar State Road Transport Corporation, Bihar State Khadi Gramdhoyog Board, Bihar State & Food Civil Supplies Corporation and Bihar State Seed Corporation, approximate amount 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....