IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Civil Writ Petition No.17112 of 2005 Date of decision: 30th September, 2010 Kapil Paul and another … Petitioners Versus State of Punjab and others … Respondents CORAM: HON'BLE MR. JUSTICE KANWALJIT SINGH AHLUWALIA Present: Mr. G.S. Bal, Advocate for the petitioners. Ms. Sudeepti Sharma, DAG Punjab, for respondents No.1 to 3. None for respondent No.4. KANWALJIT SINGH AHLUWALIA, J. (ORAL) Present petition has been filed by the husband and mother of deceased Neelam Arora, who was employed as a Social Studies Mistress in the DAV Girls High School, Gurdaspur, against a post for which the State of Punjab was disbursing 95 per cent grant-in-aid. It is not disputed that Neelam Arora was an employee of a privately recognized aided school and her salary was to be paid as per Section 7 of the Punjab Privately Managed Recognized Schools (Security of Service) Act, 1979, which reads as under: “7. Salaries of employees – Notwithstanding anything contained in Section 3, the scale of pay and dearness allowance of the employees shall not be less than those of the employees of the State Government holding corresponding posts in the schools run by the State Government. Civil Writ Petition No.17112 of 2005 Provided that where the scales of pay and dearness allowance of the employees are less than those of the employees of the State Government holding corresponding posts in the schools run by the State Government, the Director shall direct the concerned managing committee to bring the same at par with those of such employees of the State Government.” Neelam Arora was diagnosed as a patient of Diabetic Ketoacidosis and for her treatment, she was got admitted in Escort Heart and Super Specialty Institute, Amritsar as an indoor patient on 9th September, 2003. She remained admitted in the hospital upto 3rd October, 2003, the date when she expired. For the medical treatment of Neelam Arora, the petitioners had incurred an amount of Rs.2,97,122/-. Thereafter, they submitted the bills duly verified by the competent authority for reimbursement of the medical expenses. The reimbursement of medical expenses has been denied to the petitioners on the ground that the Finance Department, Punjab had issued a clarification (Annexure R-1) dated 9th August, 2005, a perusal whereof reveals that the Department opined that the facility of grant of reimbursement of medical expenses incurred on account of indoor treatment is not available to the employees of the privately aided schools, as per provisions of the Punjab State Medical Attendant Rules, 1940. Counsel for the petitioners has submitted that such a clarification/opinion given by the Department of Finance is not in consonance with the Government notification dated 31st March, 1999 (Annexure P-3), wherein it was held that all employees of private Recognized Aided Schools are to be paid the same pay scale, dearness allowance (house rent and medical allowance) as was paid to the 2 Civil Writ Petition No.17112 of 2005 employees of the State Government. The relevant portion of the notification (Annexure P-3) reads as under: “Governor of Punjab is pleased to accord sanction for parity in the pay scales and Dearness Allowance (House Rent, Medical Allowance) of the employees of the private Recognized Aided Schools with that of Govt. employees, increase in pension will be paid as per rules. The pay will be fixed w.e.f. 1.1.96 and arrears will be paid w.e.f. 1.4.2000 in six equal annual installments and regular salary will be paid in cash w.e.f. 1.4.99. All the PIT’s and ACT, Clerks and Class-4 employees who were paid new grades w.e.f. 23.12.92 as given by the Third Pay Commission, will now be paid w.e.f. 1.1.86 but they will not be paid any interest on arrears if any. It has also been decided that 5% cut will be made in the year 1999-2000 on the total salary paid in the financial year 1998-99 (Non-Plan). This decision will also be enforced on the grants to be paid to the managements of the private Aided Schools, and the management of these Privately Aided Schools will frame the modalities in this respect at their own level. This issue with the approval of the Chief Secretary to Govt. Punjab vide their No.1319 dated 31-3-99.” Counsel for the State has relied upon a judgment of Hon’ble the Apex Court rendered in Civil Appeal No.9103-05 of 1996 titled as ‘State of Punjab and others v. Om Parkash Kaushal and others’ decided on July 8, 1996 reported as AIR 1996 Supreme Court 2584, to contend that the employees of private Aided Schools are not entitled to reimbursement of medical expenses. This judgment is of no help to the State as subsequently, in the year 1999, notification (Annexure P-3) was issued. Therefore, the State is bound by the said notification. The opinion of the Finance Department is contrary to the notification (Annexure P-3), which specifically states that there shall be parity in the pay-scales and 3 Civil Writ Petition No.17112 of 2005 Dearness Allowance (House Rent and Medical Allowance) to all the employees of the private Recognized Aided Schools with that of the Government employees. That being so, the present writ petition is allowed and the petitioners are held entitled to reimbursement of the medical expenses in consonance with the policy of the State regarding reimbursement of the medical expenses prevailing at the time when the bills were submitted by the petitioners. No costs. [KANWALJIT SINGH AHLUWALIA] JUDGE September 30, 2010 rps 4