Secretary, Akola Taluka Education ... vs Shivaji And Ors

Sr. No. Academic Year Draftsman Civil Electrician Wireman Welder Fitter Sanctioned strength Actual admission Sanctioned strength Actual admission Sanctioned strength Actual admission Sanction ed strength Actual admission Sanction ed strength Actual Admission 14 August 1998 16 08 16 18 16 18 16 18 24 26 15 August 1999 16 09 16 18 16 09 16 18 24 19 16 August 2000 16 07 16 17 16 07 16 12 24 14 17 August 2001 16 00 16 09 16 06 16 05 24 11 18 August 2002 16 00 16 01 16 05 16 00 24 02 Similarly, in the certificate courses of six months and one year also, there had been a steady decline, as would appear from the following charts :

Respondent No. 1 herein was appointed on a temporary basis. The services of the private respondents were purported to have been temporarily terminated as allegedly a decision had been taken to close down the institute with effect from 12.08.2002, contending that the said purported orders of termination were violative of the Act and the Rules framed thereunder.

Appeals thereagainst were filed by the aggrieved employees/teachers before the School Tribunal, Pune Region. The jurisdiction of the Tribunal to entertain the said appeals was questioned on the ground that the institute in question was not a school within the meaning of the provisions of the said Act. The Tribunal, however, in its judgment held : (i) As the appellant was duly recognized by the Central Government permanently without grant-in- aid, it was a school within the meaning of the provisions of the said Act; (ii) Inter alia, on the premise that the services of all the staff and teachers were not terminated, the plea of the appellant that the institute had to be closed down being incorrect, the orders of termination were mala fide;

The Tribunal furthermore took note of the fact that during pendency of the said appeals, some new teachers had been appointed.

The writ petition preferred by the appellant thereagainst has been dismissed by reason of the impugned judgment.

2. Expenses for raw material per student per year (Rs.2400) Rs.2,400 x 126 (No. of students) Rs.3,02,400/-

Considering the above mentioned two tables, it becomes clear that the Petitioner is facing a deficit of Rs.4,10,800/- in the current academic year. The Petitioner if is directed to pay 100% back wages to the Respondents employees, it would create a burden of more than Rs. 40 lacs. The Petitioner is not in a position to pay back wages and the said direction would affect the poor students, who are studying in the Institute and the efforts of the Management to re-establish the Institute would be thwarted. It is respectfully submitted that the institute is being run by reducing the tuition fees so as to attract the higher number of students. As stated earlier the fees charged from the students have dwindled from Rs.20,000/- per annum in the year 1998 to Rs.6,000/- to 8,000/- at present."

Rule 26 of the Rules provides that a permanent employee may be retrenched by the management after giving him three months' notice on one or more grounds specified therein. Stoppage of imparting coaching in respect of some courses of studies was one of them. Admittedly, the respondents had not been given three months' notice. The order of termination was, therefore, bad in law.

[See also A.P. SRTC and Another v. B.S. David Paul - (2006) 2 SCC 282] We, therefore, are of the opinion that in the peculiar facts and circumstances of this case, interest of justice shall be met if grant of back wages is confined to 25% only from the date of termination of the respondents till their reinstatement. It is, however, made clear that the respondents shall be entitled to receive entire salary for the period they had worked prior to their termination as also post reinstatement.

The appeal is allowed to the aforementioned extent with the aforementioned directions. However, in the facts and circumstances of the case, there shall be no order as to costs.