SUPREME COURT OF INDIA
KULDIP SINGH AND S.C. AGRAWAL, JJ.
Employees of Tannery & Footwear Corporation of India Ltd. and another, Petitioners
Versus
Union of India and others, Respondents.
Writ Petn. (Civil) Nos. 11248-49 of 1985
Decided on 7-12-1990.
Companies Act, 1956 - Constitution of India - Article 32 – Employment and Service matter - Revision of pay and allowances – Cadre - Subordinate staff - Respondent-corporation is a Company registered under Act, 1956 - It was set up for purpose of taking over the two units of British India Corporation Limited, namely, Cooper Allen and North West Tennery - It is an undertaking owned by Government of India and it functions under administrative control of Ministry of Industry, Department of Industrial Development - Pay-scales of the employees of respondent-corporation are faked and revised as per orders of Central Government issued from time to time with the prior approval of Bureau of Public Enterprises - Held, principle laid down in said decision was reiterated in other decisions relied upon by Shri Mahajan - Pay-scales of the petitioners as revised by order cannot, therefore, be upheld - Respondents Nos. 1 and 3 should so revise pay-scales of the petitioners as to be at par with pay-scales enjoyed by the employees falling in the same category in the Cotton Corporation of India on date from which said revised pay-scales are to be applied. Under order dated April 25, 1986, the revision of the pay-scales of the petitioners has been made with effect from August 1, 1983 and is valid up to July 31, 1987 - Revision in the pay-scales of the petitioners should be made keeping in view pay-scales and allowances enjoyed by the employees falling in the same category in the Cotton Corporation of India on August 1, 1983 and such revision may be made operative up to July 31, 1987, as provided in order - Petitions allowed.
JUDGMENT
S.C. AGRAWAL, J.:— These writ petitions filed under Article 32 of the Constitution by the Employees of Tannery & Footwear Corporation of India Limited (hereinafter referred to as the respondent corporation) relate to the revision of pay and allowances of the employees in the unionised cadre of the respondent-corporation.
2. The respondent-corporation is a Company registered under the Companies Act, 1956. It was set up for the purpose of taking over the two units of the British India Corporation Limited, namely, Cooper Allen and North West Tennery. It is an undertaking owned by the Government of India and it functions under the administrative control of Ministry of Industry, Department of Industrial Development. The pay-scales of the employees of the respondent-corporation are faked and revised as per orders of the Central Government issued from time to time with the prior approval of Bureau of Public Enterprises. In these petitions we are concerned with the employees in the unionised cadre falling in four categories:
(i) Peons, Watchmen, etc.
(ii) Jamadars, Recorders, etc.
(iii) Lower Division Clerks, Clerk-cum-Typists, Compounders, Teachers, Typists, Nurses. Drivers, etc.
(iv) Stenographers, Upper Division Clerks, Assistants, etc.
By letter dated December 28, 1976, the Government of India approved the revision of pay-scales and allowances of the monthly rated employees of the respondent-corporation and in accordance with the said directions the pay-scales of the abovementioned four categories of the employees in the unionised cadre of the respondent-corporation were fixed as under:
(i) Peons, Watchmen, etc. Rs. 196-232
(ii) Jamadars, Recorders,etc. Rs. 210-270
(iii) Lower Division Clerks, Clerks-cum-Typists, Typists, Compounders, Teachers, Nurses, Drivers, etc. Rs. 260-400
(iv) Stenographers, Upper Division Clerks, Assistants, etc. Rs. 330-560
3. The dearness allowance was granted on the basis of the Industrial D.A. formula by adjusting the D.A. at Rs. 1.30 per point shift in the -All India Consumer Price Index average. The base D. A. was fixed at Rs. 65 per month relating to the Consumer Price Index average of 100 and adjustment was to be, made on quarterly basis. Ever since December, 1982, the TAFCO Staff Welfare Association, petitioner No. 1 herein, was seeking revision of pay-scales and D.A. of the staff and officers but having failed in these efforts the petitioners filed these writ petitions wherein it is prayed that respondents Nos. 1 and 3 viz.: the Union of India and the respondent-corporation be directed to revise the pay-scales and allowances of the employees of the respondent-corporation with effect from August 1, 1982 in terms of the Guidelines dated November 27, 1982, issued by the Bureau of Public Enterprises, respondent No. 2 herein, and that the respondent-corporation be directed to pay dearness allowance on industrial pattern to the employees of the respondent-corporation in terms of the said revision at the rates notified by the Bureau of Public Enterprises with effect from August 1, 1982 and April 1, 1983. It has also been prayed that respondents Nos. 1 and 3 be directed to grant with effect from August 1, 1982 all the benefits of pay revision and revision of other allowances which have been extended to the employees of those public sector enterprises which have introduced and implemented the guidelines of respondent No. 2.
4. During the pendency of this writ petition, this Court on November 18, 1985 passed the following order:
"Issue Rule. Pending the hearing and disposal of the Writ Petitions, the respondent will pay within two months from today to the staff of the Unionised cadre of the Tannery & Footwear Corporation of India Ltd., the same pay and allowances as are given to the staff of the Unionised cadres mentioned in Annexure IV of the Writ Petition, in case the same have not been paid so far."
5. This order was modified by order dated March 3, 1986, and in place of the words "the same pay and allowa
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