In Brief
The Odisha State Financial Corporation challenged a High Court order directing it to pay arrear benefits under revised pay scales from April 2012. The Court held that while the Corporation's Board had approved the revised scales in June 2012, implementation required prior approval from both the Administrative Department (MSME) and Finance Department—approvals that were never granted. The Administrative Department rejected the proposal in August 2016, citing the Corporation's failure to meet eligibility criteria, including loan defaults and financial distress. The Supreme Court held that Board approval alone was insufficient; statutory governmental approvals were mandatory. The appeal was allowed and the High Court's order was set aside."
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