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PETITIONER: JUTE CORPORATION OF INDIA OFFICERS’ASSOCIATION ETC.

       Vs.

RESPONDENT: JUTE CORPORATION OF INDIA LTD. AND ANR. ETC.

DATE OF JUDGMENT03/05/1990

BENCH: SAWANT, P.B. BENCH: SAWANT, P.B. MISRA RANGNATH

CITATION:  1990 SCR  (2)1006        1990 SCC  (3) 436  JT 1990 (2)   255        1990 SCALE  (1)1

ACT:     Labour and Services: Public Sector Enterprises--Class  I     &      H     Officers--High Power     Pay      Committee     recommendations--implementation of.      

HEADNOTE:     The High Power Pay Committee appointed under the  direc- tions .of this Court in respect of the emoluments to be paid to  the officers belonging to Class I and Class  II  Service employed in different public sector enterprises governed  by the  Central Government pattern of pay scales  and  dearness allowance,  submitted its report on November 2,  1988.  When the  Central  Government did not act expeditiously  on  that report the petitioners filed writs for a direction to imple- ment the recommendations. Disposing of the writ petitions, the Court directed:     1.  The scales of pay and dearness allowance  as  recom- mended  in the report would be extended to  those  employees who  have been appointed with specific terms and  conditions for  grant of Central D.A. and those who were already  being paid Central dearness allowance. [1009G]     2.  The employees appointed on or after January 1,  1989 would be governed by such pay-scales and allowances as might be  decided by the Government in its discretion.  Those  ap- pointed  earlier with IDA pattern would continue to be  gov- erned  in accordance with the terms and conditions of  their appointment. [1009H]     3.  The pay revision for those employees in  respect  of whom  the recommendations were being directed to  be  imple- mented  would  take place only as and when  similar  changes were  affected for the Central Government  employees.  These employees  would, however, continue to enjoy the  option  to switch over to the IDA pattern of the scales of pay etc.  on a voluntary basis. [10lOB] 1007     4. The various recommendations made in the report  would he implemented with effect from the dates indicated. [1010C]     5.  The arrears arising on account of pay, DA and  other allowances etc.. would he adjustable against ad hoc payments made from time to time. [1011C]

JUDGMENT:

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   ORIGINAL JURISDICTION: Civil Miscellaneous Petition  No. 10864 of 1989. IN Writ Petition No. 13044 of 1984 Etc. Etc. (Under Article 32 of the Constitution of India).     Kapil  Sibal,  Additional Solicitor  General,  Dr.  L.M. Singhvi,  Gobinda Mukhoty, K.K. Venugopal, Ms. Mridula  Ray, C.V.  Subba Rao, P.R. Seetharaman, Ranjit Kumar, Asru  Bose, Gulab  Chandra, Sarva Mitter, R. Venkataramani,  C.  Ramesh, Ms. Urmila Sirur, M.N. Krishnamani, Sunder Rao, K.R. Nagara- ja,  V.N.  Ganpule, J.D. Jain  and  Chandran--Petitioner  in person for the appearing parties. The Judgment of the Court was delivered by     SAWANT, J. In all these cases the relief claimed is  the implementation of the recommendations of the High Power  Pay Committee  in  respect of the emoluments to be paid  to  the officers belonging to Class-I and Class-II service  employed in different public sector enterprises.     2. Earlier, these employees had approached various  High Courts  and this Court against the decision of  the  Central Government  to switch them over to the  Industrial  Dearness Allowance pattern and the incidental steps taken to  enforce the  said decision. The main reliefs claimed in those  peti- tions  were  that (i) the employees should be  permitted  to continue to draw the salary in the scales of pay  applicable to them along with the Central Dearness Allowance, (ii) they should  be  granted  all the benefits of  pay  revision  and revision  of  other allowances which may be  announced  from time  to time by the Central Government for  its  employees, and (iii) there should be no discrimination between them and those  directly-employed by the Central Government and  that they should get the same scales of pay and 1008 allowances for the same types of jobs in accordance with the principle of "equal pay for equal work".     During  the course of the hearing, on August  24,  1984, this Court ordered the payment of three additional  dearness allowance  instalments from August 1, 1983, October 1,  1983 and November 1, 1983 to those employees who were on  Central pattern  of pay-scales and dearness allowance subject to  an individual  undertaking by each employee that in  case  such payment  resulted in the employee receiving an excess,  such excess would be recovered from him from future payments,  if the petitions failed.     On February 19, 1986, the Court further ordered that all employees of public sector enterprises following the Central dearness  allowance pattern and drawing a basic pay  of  Rs. 1000  or  less, will be entitled to interim reliefs  on  the same  basis and scale as the Government of  India  employees w.e.f.  January  1, 1986. This was also allowed  subject  to similar undertaking given by each employee.     When  the matters were posted for hearing on  March  14, 1986,  the Central Government expressed its  willingness  to refer to High Power Pay Committee the question regarding the revision  of payscales, additional dearness allowance,  com- pensatory  and  other allowances and such  other  incidental aspects  relating to the employees governed by  the  Central pattern  of pay-scales and dearness allowance.  Accordingly, the  Court directed the Central Government to  constitute  a High Power Pay Committee to go into various aspects relating to pay-scales and other incidental matters including interim relief  to the said employees, viz., the employees  governed by the Central Government pattern of pay-scales and dearness allowance.  The  terms of reference of the  High  Power  Pay Committee were as follows:

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"I.  To  examine  the present structure  of  emoluments  and conditions  of service taking into account the total  packet of  benefits  in cash and kind, available  to  the  workers, clerical  staff, supervisors and officers, below  the  Board level  following  the  Central DA  pattern  and  to  suggest changes which may be desirable and feasible. II.  To  examine the variety of allowances and  benefits  in kind that are presently available to the above noted employ- ees  in addition to pay and DA and suggest  rationalisation, simplification thereof with a view to promoting efficiency. 1009 III. To examine matters relating to grant of interim  relief to  the employees of all such public enterprises  (belonging to  the  Government of India and following  the  Central  DA pattern) who are drawing basic pay above Rs. 1000 per  month and grant necessary relief to them, if called for. IV.  While making recommendations on the above  points,  the Committee  would keep in view other related factors such  as scales of pay, DA and allowances prevailing in other  public sector  undertakings  on  Industrial  DA  formula,  economic conditions  in the country, resources available at the  dis- posal of these public enterprises".     3.  The Committee submitted its recommendations  by  its Final  Report  of  November 2, 1988.  However,  the  Central Government did not act on the said report expeditiously  and hence the present writ petitions were filed on various dates praying for relief in the form of a direction to the Central Government  to  implement the recommendations  made  in  the Report. The Government took several adjournments to disclose its stand on the Report and has now ultimately come out with proposals which are incorporated in the additional affidavit dated  17th  April, 1990, filed on behalf of  the  Union  of India  by  Shri Suresh Kumar, Additional  Secretary  in  the Ministry  of  Industry, Bureau of  Public  Enterprises.  The affidavit is taken on record.     We  heard the parties on the proposals contained in  the affidavit and found that there was not much controversy over the proposals except in regard to the date of the  implemen- tation  of the House Rent Allowance. The employees  insisted that  the  said  allowance should be given  from  1.1.  1986 whereas  the  Government contended that it can  properly  be implemented  only w.e.f. January 1, 1989, since  the  Report was of 2nd November, 1988. We, however, direct as follows: (i) The scales of pay and dearness allowance as  recommended in  the Report will be extended to those employees who  have been appointed with specific terms and conditions for  grant of  Central  D.A.  This will be equally  applicable  to  the employees who by rules laid down by the public sector enter- prises are being paid Central dearness allowance. (ii)  The employees appointed on or after January  1,  1989, will be governed by such pay-scales and allowances as may be decided by the Government in its discretion. Those appointed earlier 1010 with IDA pattern will continue to be governed in  accordance with the terms and conditions of their appointment. (iii)  The  pay revision for those employees in  respect  of whom  the  recommendations are hereby being directed  to  be implemented  hereafter,  will take place only  as  and  when similar  changes  are effected for  the  Central  Government employees. These employees will, however, continue to  enjoy the  option to switch over to the IDA pattern of the  scales of pay etc. on a voluntary basis. (iv) The various recommendations made in the Report will  be implemented  with  effect from the dates as  follows.  These

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dates are broadly in conformity with those specified in  the Report: Item                        To be implemented w.e .f. 1.  Revised pay-scales and    1.1.1986 (Para  16.1)     revised D .A. formula 2.  First instalment of       1.6.1983 (Para 16.3)     Interim Relief 3.  Second instalment of      1.3.1985 (Para 16.3)     Interim Relief 4.  CCA as per revised slabs  1.1.1989     (para 11.6 of Chapter 11  (From 1.1.1986to31.12.1988 CCA     of the Report)            will be paid at the existing                               rate at national pay in the                               revised pay-scales(para 11.7                               of the report) 5.  House Rent Allowance      Ceiling on payment of HRA with     percentage rates as per   out production or rent receipt     BPE’s OM NO.1(3)/83 BPE   to be revised from 1.12.1988.    (WC) dated 1.7.83, sub-    The existing HRA structure to    ject to overall ceiling    be reviewed by BPE and revised    of Rs.1250, 1000, 680,     norms and rates fixed from a    340 and 310 for Delhi/     prospective date (Ref. Para    Bombay, A,B1 and B2,C      11.15)    and unclassified cities    respectively. 1011 6. Medical facilities in      From prospective date to be    terms of para 11.21 of     decided by the Management of    the Report                 the PSBs 7. Leave Travel Concession    -do- 8. Other Allowances and per-  The quantum of benefits to be    quisites as per recommen-  decided by the Management of    dations contained in Cha-  PSEs should be given effect    pters 12 & 13 of the       to prospectively in terms    Report                     of para III. 7 part III of                               the Report (v)  The  arrears arising on account of pay,  DA  and  other allowances etc., would be adjustable against ad hoe payments made from time to time.        4.  This judgment will govern all the petitions.  The petitions, transferred cases and all interlocutory  applica- tions,  civil miscellaneous petitions and contempt  petition are disposed of accordingly with no costs. P.S.S.                                Petitions disposed of. 1012