CHANDRA NATH JHA vs STATE OF BIHAR .

The Supreme Court held that the liability of the State Government for the employees of the R.B.T.S. Homeopathic Medical College and Hospital arises only from the date of takeover, which is 1.4.1981, as per the Notification dated 29.1.1981. The Court directed that employees who received payments prior to this date should not be required to return those amounts, while others would be entitled to revised pay scales only from the takeover date. The appeals were disposed of with these observations and directions, with parties bearing their own costs.