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This is an archive article published on January 18, 2005

SC slams Bihar over staff salary

The Supreme Court has come down heavily on the Bihar government for taking a stand that it has no liability to pay salaries to employees of ...

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The Supreme Court has come down heavily on the Bihar government for taking a stand that it has no liability to pay salaries to employees of public sector undertakings.

A bench comprising Justice N. Santosh Hegde and Justice S.B. Sinha, which recently directed the Bihar government to deposit Rs 50 lakh for the purpose, has expressed unhappiness over the stand taken by the counsel for the state.

‘‘We do not appreciate the stand taken by the state of Bihar now that it does not have any constitutional obligation towards a section of citizens, viz, the employees of the public sector undertakings who have not been paid salaries for years,’’ Justice Sinha said.

Advocate B.B. Singh, appearing on behalf of the state, had submitted that the state has no liability to pay the salaries of the employees of the statutory corporations/companies incorporated under the Indian Companies Act.

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