In a landmark judgment, the Rajasthan High Court has ruled that employees of government-aided educational institutions are entitled to directly recover their dues, corresponding to the grant-in-aid portion, from the State Government. This decision underscores the State's responsibility in ensuring timely disbursement of funds to employees in aided institutions and clarifies the procedural obligations of both the institutions and the government.
Background of the Case
The petitioner in this case was an aided educational institution where the respondent-employee held a sanctioned and aided position. The Rajasthan Non-Government Educational Tribunal in Jaipur had previously directed that for the employee's dues—including pay and allowances, arrears from pay scale revisions, selection grades, and leave encashment—the institution was liable for 20% of the payment, with the remaining 80% to be borne by the State Government as part of the grant-in-aid scheme. Despite this directive, the dues remained unpaid, prompting the employee to claim the total amount along with interest for the delayed payment. The institution contested its liability for the interest, arguing that it had submitted the due statements to the State Government in 2016-17 and that any delay in releasing the 80% share was attributable to the government. Conversely, the employee contended that the institution had delayed its 20% share and sought permission to recover the remaining 80% directly from the State Government, along with interest for the delayed period. The State Government argued that the institution had failed to prepare and submit the necessary due statements for each employee, absolving the government of liability for the delayed payments and any associated interest.
Court's Analysis and Judgment
Justice Sudesh Bansal, presiding over the case, examined the obligations of both the aided institutions and the State Government under the Rajasthan Non-Government Educational Institutions Act, 1989, and the corresponding 1993 Rules. The court emphasized that while the institution is responsible for preparing and submitting due statements, the State Government holds the ultimate responsibility for disbursing the grant-in-aid portion to the employees. The court noted that any delay in the release of funds adversely affects the employees, who are entitled to timely payment of their dues. Consequently, the court ruled that employees have the right to directly recover the grant-in-aid portion of their dues from the State Government. Furthermore, the court held that the State Government is liable to pay interest on delayed payments attributable to its inaction or procedural delays. Similarly, the institution is liable for interest on its 20% share if it fails to disburse the amount promptly. This judgment reinforces the accountability of both the State Government and aided institutions in ensuring the timely payment of dues to employees, thereby upholding the financial rights of individuals working in government-aided educational institutions.
Implications of the Judgment
This ruling has significant implications for the administration of aided educational institutions in Rajasthan. Firstly, it clarifies that employees are not solely dependent on their institutions for the recovery of dues; they can approach the State Government directly for the grant-in-aid portion. This provision ensures that employees receive their entitled payments without undue delay, even if the institution fails to act promptly. Secondly, the judgment places a dual responsibility on both the institutions and the State Government to adhere to procedural timelines and ensure the efficient processing of due statements and disbursement of funds. Failure to comply with these responsibilities results in financial liabilities in the form of interest on delayed payments, thereby incentivizing timely action. Lastly, the decision serves as a precedent for similar cases, promoting a more streamlined and accountable system for managing grant-in-aid disbursements across the state's educational sector.
Conclusion
The Rajasthan High Court's decision marks a pivotal step towards safeguarding the financial rights of employees in government-aided educational institutions. By affirming the right of employees to directly recover the grant-in-aid portion of their dues from the State Government, the court has reinforced the accountability mechanisms within the grant-in-aid framework. This judgment not only benefits the employees but also encourages both educational institutions and the government to maintain diligence and efficiency in financial matters, ultimately contributing to the better functioning of the educational sector in Rajasthan.
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