Kerala Govt Has No Obligation To Pay KSRTC Salaries: State's Appeal In High Court

The Kerala Government has approached the High Court challenging the order directing it to release requisite funds to KSRTC to clear salary dues of its employees for the months of July and August, along with the bonus eligible to those below the managerial cadre on or before the 1st September.

In the Writ Appeal moved through Special Government Pleader Advocate P. Santhosh Kumar, the State challenged the order passed by the Court on 24th August 2022, contending that the State Government has no obligation to pay salary and other allowance to the employees of the KSRTC.

The Original Writ Petition was filed by the employees of Kerala State Road Transport Corporation seeking direction to the Corporation and its Managing Director to formulate a scheme for payment of salary to its employees at least before the 5th of every succeeding month. Two other similar petitions were also preferred by the employees of KSRTC.

On 24th August, when the matter came before the Court, the Single Judge took note of the fact the KSRTC had requested a sum of Rs. 103 Crores from the Government and directed the Competent Authorities of the Government to release the said amount. Aggrieved by this order, the state has preferred the appeal. 

In the Appeal Memorandum, the State contended that it has no obligation or liability under any statute or by virtue of the terms of any agreement to provide financial assistance to the KSRTC to meet its salary or other expenses or liabilities. 

It is contended by the Appellant-State that there are no pleadings in the Writ Petition, with reference to any statutory provisions or contractual conditions, regarding the liability or obligation of the State Government to render financial aid to the KSRTC. 

It is also submitted in the appeal memorandum that Article 266(3) of the Constitution of India prohibits the appropriation of money out of Consolidated Funds except in accordance with the law and for the purpose and in the manner provided in the Constitution. 

Furthermore, it is submitted that the allocation of funds and provision of public expenditure must be in consonance with the requirements of the Constitution of India. Under the scheme of the Constitution, these matters are in the realm of the executive and legislature, and it is for the executive to determine the priorities for public spending and present it for the approval of the legislature. And it is settled law that the Courts cannot direct the State Government to spend beyond the sanctioned amount, which is in the domain of the legislature in view of the provisions envisaged under Articles 202 to 207 of the Constitution. 

Case Title: State of Kerala v. R. Baji