Kapila Hingorani vs State Of Bihar

The Supreme Court addressed the issue of vicarious liability of the Bihar Government for unpaid salaries to employees of state-owned corporations and public sector undertakings. The Court emphasized that the non-payment of salaries has led to severe consequences, including starvation and suicides among employees, thus establishing a legal obligation for the state to ensure timely payment of salaries. The Court held that the state is liable to pay the arrears of salaries to the affected employees, thereby reinforcing the principle of state accountability in employment matters.