The Kerala government on Tuesday filed an appeal before a Division Bench of the Kerala High Court challenging a single judge’s directive to release the requested ₹103 crore to the Kerala State Road Transport Corporation (KSRTC) to pay salaries to KSRTC employees.
The government said that it had no obligation/liability under any statute or by virtue of any agreement to give financial assistance to meet its employees’ salary or other expenses or liability.
‘Improve productivity’
The appeal pointed out that the government had made it clear before the single judge that it was not in a position to sanction a grant to the KSRTC unless the productivity of the employees was improved. In fact, ₹1,000 crore had been allocated to the KSRTC in the Budget.
The government wanted to limit the Corporation’s expenditure to ₹1,000 crore. But the employees wanted the government to pay their salary without making any effort to increase their productivity and reduce operating expenses.
The government pointed out that the employees were agitating against the management and the government for salary without accepting any reform being practised by the other road transport undertakings. The government wanted the KSRTC to be a profit-making organisation since it was undertaking a social cause. The KSRTC could not be given extra priority over and above the budgetary provisions, overlooking the requirements of other institutions.
It also pointed out that Article 266(3) of the Constitution prohibited appropriation of money out of the consolidated fund except in accordance with the law. The allocation of funds must be in consonance with the requirement of the constitution. It was for the executive to determine the priorities for public spending.
Settled law
It was a settled law that courts could not direct the State government to spend beyond the sanctioned amount which is in the domain of the legislature. Besides, the employees were appointed by the corporation and the single judge ought to have found that there was no employer-employee relationship between the State government and the employees of the KSRTC, it said.
