STATE OF ORISSA & ANR. vs N.N. SWAMY & ORS. ETC.

The Supreme Court addressed the legality of the takeover of Khallikote College by the Government of Orissa, which occurred on March 9, 1971, under a formal agreement. The Court held that the transfer of management did not absolve the Government from the obligation to pay the salaries of the Readers employed at the College, as they were entitled to the Government scale of pay. The Court ruled in favor of the respondents, affirming their right to receive salaries in accordance with the Government pay scale, thus ensuring their financial security post-takeover.