Kerala High Court division bench stays single judge’s directive to release amount to KSRTC

State government pointed out that the employees were agitating against the management and the government for a salary without accepting the reforms suggested by the government

A Division Bench of the Kerala High Court on Wednesday stayed a single judge’s directive to the State government to release ₹103 crores as requested by the Kerala State Road Transport Corporation (KSRTC) for paying salaries to the Corporation employees.

The Bench comprising Justice A.K. Jayasankaran Nambiar and Justice Mohammed Nias passed the interim order while admitting an appeal filed by the State government against the order of the single judge.

The State government contended in its appeal that it had no obligation or liability under any statute or by virtue of any agreement to give financial assistance to meet the KSRTC employees’ salary or their other expenses or liability.

The appeal pointed out that the government could not allot funds to the KSRTC unless the productivity of the employees improve. In fact, ₹1000 crores had been allocated to the KSRTC in the budget, and the government wanted the Corporation to limit its expenditure to ₹1000 crores.

The government pointed out that the employees were agitating against the management and the government for a salary without accepting the reforms suggested by the government. The government wanted the KSRTC to turn it into a profit-making organisation. However, the government cannot give special priority to the KSRTC over and above the budgetary provisions, overlooking the requirements of other institutions.

It is for the executive to determine the priorities of public spending. Besides, the employees were appointed by the Corporation and there was no employer-employee relationship between the State government and the employees of KSRTC.