TMI Blog2003 (7) TMI 733X X X X Extracts X X X X X X X X Extracts X X X X ..... y Commission granted three installments of interim relief. According to the petitioners, the benefit was extended to the employees of all 68 Public Enterprises. The grievance of the petitioners was that they were not given any installment of interim relief and as there was no response from the Chairman and Managing Director of the IDPL, they filed contempt petition No. 490 of 1996 for violation of directions given by this Court's order dated 03.05.1990. The contempt petition was dismissed as there was unprecedented financial crunch. On 24.10.1997, the Fifth Pay Commission recommended revision of scales of pay and allowances of the Central Government employees and the third respondent herein directed 69 Public Enterprises to revise the pay-scales of the employees following C.D.A. pattern w.e.f. 01.01.1996. As the first respondent did not take any action, the present writ petition No. 222 of the 1998 was filed in this Court. 2 . Mr. G.L. Sanghi, learned senior counsel, appearing for the petitioners placed strong reliance on a judgment of this Court dated 03.05.1990 in Jute Corporation of India Officers' Association v. Jute Corporation of India Ltd. and Anr. [1990]2SC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... House Rent Allowance Percentage rates as per BPE's OM No. 1(3)/83-BPE(WC) dated July 1, 1983, subject to overall ceiling of R.1250. 1000. 680, 340 and 310 for Delhi/Bombay, A, 81 and 82, C and unclassified cities respectively. Ceiling on payment of HRA without production of rent receipt to be revised from December 1 . 1988. The existing HRA structure to be reviewed by BPE and revised norms and rates fixed from a prospective date (Ref. Para 11. 15) 6. Medical facilities in terra of Para 11 21 of the Report From a prospective date to be decided by the management of the PSEs 7. Leave Travel Concession -do- 8. Other allowance and perquisites as per recommendations contained in Chapters 12 and 13 of the Report The quantum of benefits to be decided by the management of PSEs should be given effect to prospectively in terms of Para III. 7 Part III of the Report (v) The arrears arising on account of pay, DA and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the directions contained in O.M. dated 24.10.1997 issued by the third respondent are binding on the first respondent, IDPL, which is one of the 69 undertakings and that officers of all 69 undertakings following CDA pattern of pay-scales form a class and withholding of the benefit of revision of scales from a section of the class is discriminatory and violative of Articles 14 and 16 of the Constitution and that it is incumbent upon the respondents to ensure that IDPL carries out the directions issued by them. Arguing further the learned senior counsel submitted that the entire expenditure on the salaries payable to the employees of the first respondent is borne by the Government and, therefore, financial constraints cannot be pleaded as an excuse for not paying the installments of interim relief and not revising the payscales. Placing reliance on the Clause (iii) of the directions issued by this Court, which has been extracted above in Jute Corporation of India Officers' Association (supra), Mr. Sanghi submitted that since the Government had revised the scales of its employees, the respondent - IDPL is bound to revise the pay-scales of the petitioners also. 4. With th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es for the revival of the respondent company. Learned counsel for the first respondent also submitted that the Government of India could not provide sufficient budgetary support to the IDPL and consequently the production activities had to be stopped in major two units of the company at Rishikesh and Hyderabad w.e.f. October, 1996 and that the respondent company has no means of generation of funds and the Government of India was continuing to give financial assistance for the payment of salaries only and the decision for the revival of the respondent company is still pending before the Government of India and the BIFR. It was also brought to our notice by the learned counsel for the list respondent that the petitioners who are officers and supervisors constitute only 5 per cent of the total strength of the employees of the respondent company and that the wage revision in respect of other employees has not been sanctioned by the Government of India so far. 6. Mr. P.P. Malhotra, learned senior counsel appearing for respondent Nos. 2, 3 and 4, after inviting our attention to the submissions made in the counter affidavit submitted that for various reasons the IDPL became a sic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hi that economic viability of the industrial unit or the financial capacity of the employer cannot be taken into consideration in the matter of revision of pay-scales of the employees. mpara 9. A Constitution Bench of this court had examined the question of revision of wages of workmen in Express Newspaper (Private) Ltd. and Anr. v. Union of India and Ors. (1961)ILLJ339SC . This Court laid down the following principles for fixation of rates of wages:- (1) that in the fixation of rates of wages which include within its compass the fixation of scales of wages also, the capacity of the industry to pay is one of the essential circumstances to be taken into consideration except in cases of bare subsistence or minimum wage where the employer is bound to pay the same irrespective of such capacity; (2) that the capacity of the industry to pay is to be considered on an industry-cum-region basis after taking a fair cross-section of the industry; and (3) that the proper measure for gauging the capacity of the industry to payshould take into account the elasticity of demand for the product the possibility of tightening up the organisation so that the indus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nment of India to the BIFR in the existing revival package was ordered to be examined by an operating agency and, in fact, IDBI was appointed as an operating agency under Section 17(3) of SICA. It is also not in dispute that the production activities had to be stopped in the major two units of the company at Rishikesh and Hyderabad w.e.f. October, 1996 and the losses and liabilities are increasing every month and that the payment of three installments of interim relief could not also be made due to the threat of industrial unrest and the wage revision in respect of other employees is also due w.e.f. 1992 which has also not been sanctioned by the Government of India. 12. In the instant case, it is also not in dispute that the units of the companies have already suspended their operations and as on date no unit is functioning. It is also observed in the dated 23.01.1996 that the company's sales were of the order of ₹ 215 crore against the projected sales of ₹ 305.65 crore for the year ended 31.03.1995 and the company incurred a net loss of ₹ 69.80 crore against the projected profit of ₹ 0.08 crore. The major reasons for the poor performance of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hyderabad, Muzafarpur, Chennai including CDA employees : 6582 2. Opted for VRS by 31.12.2002 : All 3. Relieved employees (Including CDA employees) upto 15.07.2003 : 1166 16. Position of 1166 employees as on 15.07.2003:- a. Corporate office : 45 b. Regional sales office (Marketing) : 193 c. Gurgaon Plant : 34 d. Hyderabad Plant : 97 e. Muzafarpur Plant : 25 f. IDPL Chennai : 25 g. Rishikesh Plant : 739 Total Total :1166 Under CDA : 200 Under IDA : 966 17. We have already referred ..... X X X X Extracts X X X X X X X X Extracts X X X X
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