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2004 Supreme(Kar) 662
Karnataka High Court
NIJAGUNI - Appellant
Versus
STATE OF KARNATAKA - Respondent
Decided On : 11-29-04
W.P. : 28702 of 2003
B.P.PUTTA SIDDAIAH, D.KRISHNA MOORTHY, G.BALAKRISHNA SHASTRI, M.SUBRAMANYA BHAT, P.S.RAJGOPAL, Subba Rao, V.LAKSHMI NARAYANA
Headnote:Constitution of India -Service conditions of employees of High Court -Article 229 -Service conditions of employees of High Court -Powers of State to affect -High Court employees appointed by High Court, salaries etc., paid from consolidated Fund of the State -Can the State adjust enhanced amount of dearness allowance towards Calamity Relief Fund? No. [K. Bhakthavatsala, J]: The Impugned notifications with regard to the compulsory deduction and transfer of the enhanced Dearness Allowance towards the C R F in relation to employees of High Court are not binding on the High Court and Its employees. In other words it is the prerogative of the Hon ble Chief Justice under Article 229 of the Constitution of India to issue suitable direction or orders in that regard after considering the issue in question. There cannot be any dispute about the principle of law.
Cases Referred: (1979) 2 SCC 34; AIR 1971 SC 1850; 1997-II-LLJ 30; 1989-I-LLJ 554; AIR 1956 SC 285; AIR 1979 SC 193; AIR 1996 SC 693; AIR 2004 SC 1402; 1963 SC 1332; AIR 1970 SC 390; 1963(1) LLJ 204.
Service condition of employees of High Court
LABOUR AND SERVICES -Service conditions of employees of High Court -Powers of State to affect -High Court employees appointed by High Court, salaries etc., paid from consolidated Fund of the State -Can the State adjust enhanced amount of dearness allowance towards Calamity Relief Fund? No.
[K. Bhakthavatsala, J]: The Impugned notifications with regard to the compulsory deduction and transfer of the enhanced Dearness Allowance towards the C R F in relation to employees of High Court are not binding on the High Court and Its employees. In other words it is the prerogative of the Hon ble Chief Justice under Article 229 of the Constitution of India to issue suitable direction or orders in that regard after considering the issue in question. There cannot be any dispute about this principle of law.
Service conditions of employees of High Court
Constitution of India - Article 229 -Service conditions of employees of High Court -Powers of State to affect -High Court employees appointed by High Court, salaries etc., paid from consolidated Fund of the State -Can the State adjust enhanced amount of dearness allowance towards Calamity Relief Fund? No.
[K. Bhakthavatsala, J]: The Impugned notifications with regard to the compulsory deduction and transfer of the enhanced Dearness Allowance towards the C R F in relation to employees of High Court are not binding on the High Court and Its employees. In other words it is the prerogative of the Hon ble Chief Justice under Article 229 of the Constitution of India to issue suitable direction or orders in that regard after considering the issue in question. There cannot be any dispute about the principle of law.
Cases Referred: (1979) 2 SCC 34; AIR 1971 SC 1850; 1997-II-LLJ 30; 1989-I-LLJ 554; AIR 1956 SC 285; AIR 1979 SC 193; AIR 1996 SC 693; AIR 2004 SC 1402; 1963 SC 1332; AIR 1970 SC 390; 1963(1) LLJ 204.
Non-statutory deductions
Payment of Wages Act, 1936 - Non-statutory deductions -If the employer wants to make any deductions which are not statutory, such deductions cannot be made out of wages without consent of the employees.
[K. Bhakthavatsala, J]: In the event of deduction other than statutory, the employer cannot deduct out of wages/salary without the written consent of the employee. That is the reason why the Payment of Wages Act has been enacted.
Non-statutory deductions
Payment of Wages Act, 1936 - Non-statutory deductions -If the employer wants to make any deductions which are not statutory, such deductions cannot be made out of wages without consent of the employees.
[K. Bhakthavatsala, J]: In the event of deduction other than statutory, the employer cannot deduct out of wages/salary without the written consent of the employee. That is the reason why the Payment of Wages Act has been enacted.
Cases Referred: (1979) 2 SCC 34; AIR 1971 SC 1850; 1997-II-LLJ 30; 1989-I-LLJ 554; AIR 1956 SC 285; AIR 1979 SC 193; AIR 1996 SC 693; AIR 2004 SC 1402; 1963 SC 1332; AIR 1970 SC 390; 1963(1) LLJ 204.
Dearness allowance
LABOUR AND SERVICES - Dearness allowance -Adjustment of amount enhanced towards Calamity Relief Fund -Consent of employees not obtained -Held, such adjustment cannot be made.
[K. Bhakthavatsala, J]: It is common knowledge that whenever the State s financial position is weak and the enhanced Dearness Allowance is released, the arrears of Dearness Allowance is ordered to be kept either in National Savings Certificate or credit the same to Provident Fund Account of the employees. Thus, Immediate cash payment was deferred for few years. But, in the instant case, there is a total denial of the enhanced Dearness Allowance. The action of the State Government in appropriating the enhanced Dearness Allowance of 3% of basic pay granted for the period from 1.1.2003 to 31.5.2003 as contribution from the employees to Calamity Relief Fund without their consent is not justifiable in law.
( 1 ) TWO Government Orders one dated 7-6-2003 bearing No. FD. 8. SRP. 2003 and the second dated 29-1-2004 bearing No. FD 24 SRP 2003, insofar as adjusting the grant of enhanced Dearness Allowance at the rate of 3% and 4% of Basic Pay for the period from January 2003 to may 2003; and July 2003 to December 2003, respectively, towards calamity Relief Fund (in short, 'crf') are questioned in these writ petitions. Reg. Writ Petition Nos. 28702 of 2003, 10279 of 2004, 30484 and 30485 of 2003, 28270 to 28281 of 2003 and 9917 to 9920 of 2004.
( 2 ) THE contentions of the petitioners viz. , certain employees of the high Court of Karnataka and Karnataka High Court Employees' welfare Association (in short, 'khcew Association') are as under.- (i) that the service conditions of the employees of the High court of Karnataka are governed by the Rules framed under article 229 of the Constitution of India and the Chief Justice is the sole Authority to fix pay and allowance of the employees. (ii) that the petitioners are not the members of the Karnataka state Government Employees' Association (in short, 'ksge association') and therefore the unilateral decision of the said association to contribute the arrears of Dearness Allowance to the CRF is not binding on the petitioners and therefore the transfer of the arrears of Dearness Allowance as donation to the CRF is arbitrary and illegal. (iii) that the State Government has no power to impose its decision on the petitioners since they are not employees of the State Government. (iv) that the suo motu transfer of arrears of Dearness Allowance to the CRF is an unauthorised deduction from the salary of the employees.
( 3 ) THEREFORE, they have prayed for quashing the impugned portion of the above said Government Orders. Reg. Writ Petition Nos. 29955 to 29958 of 2003. The brief facts of the case leading to the filing of the writ petitions may be stated as under.- the petitioners 1 and 2 are working as Assistant Teachers in Vikasa high School, R. M. Nagar, Bangalore, and Sri Jaya Bharathi co-operative High School, Attibele, Bangalore, respectively. The 3rd petitioner is working as Physical Education Teacher in Sree Maruthi high School, Thataguni, Bangalore. The 4th petitioner is working as second Division Clerk in S. S. S. High School, Chamarajpet, Bangalore. The above said Educational Institutions are Grant-in-Aid Educational institutions. The Government of Karnataka, by impugned Order dated 7-6-2003 has sanctioned enhanced Dearness Allowance by 3% of Basic pay, with effect from 1-1-2003, to the Government Servants, employees of Boards, Corporations, Aided Educational Institutions, Local authorities, etc. , on par with the Central Government employees. Further, as per the impugned Government Order, the enhanced dearness Allowance is payable to the employees in cash from the month of June 2003 onwards, but the 3% Dearness Allowance of Basic Pay for the period 1-1-2003 to 31-5-2003 shall be transferred to CRF, as agreed by the KSGE Association. It is contended that the so-called consent or authorisation given by the KSGE Association does not bind the petitioners as the association does not represent the employees of the boards, Corporations, Local Authorities, Aided Educational Institutions, etc. The action of the Government in depriving the arrears of enhanced dearness Allowance to the employees at 3% of the Basic Pay for the above said period is without the authority of law. As per para 6. 3 of the revision of Scales of Pay of the Government Order dated 18-1-1999, the dearness Allowance shall be paid twice a year from 1st of January with the salary for March and from 1st of July with the salary from september. Therefore, the KSGE Association had no role to play with regard to release of Dearness Allowance by the Government.
( 4 ) IN short, the petitioners have urged the following grounds.- (a) that the Government Order adjusting the arrears of dearness Allowance from the salary of
