Banij Ali Khan and 10 Ors. v. the State of Assam and 6 Ors.
Case brief
What is this about?
Members of Panchayat Raj Institutions in Assam, whose terms expired in March 2018, challenged the Government's non-payment of admitted dues amounting to Rs. 182 Crores. The dispute arose from a lack of concurrence between the Panchayat and Finance Departments. Holding that internal administrative tussles cannot vitiate the State's statutory liability, the Court invoked Article 226 to issue a mandate for the State to verify and pay the dues within six months, allowing payment in full or installments to suit financial convenience.
What did the court decide?
The State of Assam is directed to verify the petitioners' entitlements and pay the dues within six months. The State is at liberty to release the funds in one go or in installments as per administrative and financial convenience, subject to the necessary approvals from the Finance Department.