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2012 Supreme(Del) 1930
High Court of Delhi
THE HONOURABLE MR. JUSTICE PRADEEP NANDRAJOG & THE HONOURABLE MR. JUSTICE MANMOHAN SINGH
Moolchand Kharaiti Ram Hospital Karamchari Union
Versus
Moolchand Kharaiti Ram Hospital & Ayurvedic Research Institute & Others
LPA 116 & 210 OF 2012
Decided on : 21-09-2012
For the Appellant:Sanjay Parikh, instructed by Ms. Mamta Saxena, Abinash K. Mishra, Ms. Bushna Parveen, Shanti Bhushan, & Raj Birbal, Sr’s. Adv. instructed by Ms. Raavi Birbal, Advocates.
For the Respondents:Shanti Bhushan, & Raj Birbal, Sr’s. Adv. instructed by R1 -Ms. Raavi Birbal, Ms. Bushna Parveen, Sanjay Parikh, instructed by Ms. Mamta Saxena, Abinash K. Mishra, V.C. Jha, & R3-Ms. Sonia Sharma, Advocates.
The Industrial Tribunal has the authority to impose new obligations or modify existing ones in the interests of industrial peace, and its adjudication is not confined to interpreting contractual rights and obligations.
Headnote:
Industrial Dispute - Pay Scales - Settlements dated August 21, 1977, May 17, 1979, and January 31, 1994 - Section 19 of the Industrial Disputes Act - Vth Central Pay Commission - Financial Capacity of the Hospital
Fact of the Case:
The dispute arose between the Management of a hospital and the Union regarding the revision of pay scales for class-III and class-IV employees. The Union claimed entitlement to wages at par with the recommendations of the Vth Central Pay Commission, while the hospital denied the entitlement citing termination of the settlement and financial constraints.
Finding of the Court:
The Tribunal held in favor of the Union, stating that the employees were entitled to revision of pay scales as per the Vth Central Pay Commission. The Single Judge upheld the Tribunal's decision, emphasizing that the settlement remained operational until replaced by a fresh settlement or award.
Issues: The main issue was the entitlement of class-III and class-IV employees to revised pay scales as per the Vth Central Pay Commission, and the termination of the settlement by the hospital.
Ratio Decidendi: The settlement remained operational until replaced by a fresh settlement or award, and the employees were entitled to revision of pay scales as per the Vth Central Pay Commission. The Tribunal's adjudication was not confined to interpreting contractual rights and obligations but aimed at arriving at an equitable arrangement for industrial peace.
Final Decision: The judgment was in favor of the Union, directing the hospital to pay wages to the employees as per the Vth Central Pay Commission's recommendations until the matter was re-adjudicated by the Tribunal.
PRADEEP NANDRAJOG, J.
1. The factual matrix leading to filing of the above captioned appeals is that on August 21, 1977 a settlement was entered into between the Management of Moolchand Khairati Ram Hospital & Ayurvedic Research Institute (hereinafter referred to as the „Hospital’) and Moolchand Khairati Ram Hospital Karamchari Union (hereinafter referred to as the „Union’) pertaining to the pay of class-III and class-IV employees of the hospital. The relevant terms of the settlement dated August 21, 1977 read as under:-
“Demands of the union were discussed…..
The question of revision of pay scales was also discussed. It was agreed that interim relief @ `35/-PM. should be allowed to each employee falling in the category of class IV & III effective from 01.08.77. It was also agreed that the government pay scales as prevailing on 01.10.78 will be introduced for all employees falling in the category of class III & IV from that date.
…..
Both sides have agreed that peaceful condition should prevail and all differences will be settled by mutual discussions and agreement.
As soon as the government pay scales are introduced for class III & IV employees with effect from 01/10/78. House rent & other facilities at present prevailing will be regulated as per govt. rules.
Any difference of opinion what constitutes as facility will be decided by mutual discussion.”
2. Disputes arose between the parties with regard to the implementation of the settlement dated August 21, 1977. The matter was placed before the Conciliation Officer, Delhi Administration. On May 17, 1979 a settlement was entered into between the parties during the conciliation proceedings. The relevant terms whereof read as under:-
“Both the parties have now agreed for settlement on following terms and conditions:-
1. 1. It has been decided that since 1.10.1978 the Third and Fourth class employees of Shri Moolchand Khariti Ram Hospital (Research) shall be given the same salary which is given to the similar classes of the employees of the Central Government Hospitals which has been shown in the attached Annexure-A and which shall be binding on both the parties. It has been further agreed that the details of the salary given in the attached Annexure-A are true and correct and both the parties have accepted the same. ….
2. 7. It has also been agreed that as and when the Central Government shall increase the
pay scale of it’s employees, the management of this hospital shall also give the same pay scale, in which the house rent and CCA shall also be included, to it’s employees at the same rate. But the said pay scale shall be given to the employees of this hospital, 6 months after it is paid by the Central Government.
7B However, the dearness allowance shall be given at the same rate and date to the employees herein as and when the Central Government shall give the same to their employees. ….”
3. On January 31, 1994 a fresh settlement was entered into between the parties, the relevant terms whereof read as under:-
“7. Appointment Letters
It was agreed that appointment letters should be issued as per classification of the employees and the corresponding minimum scales of pay in Central Govt. Hospitals will be given for various posts of Class III & IV in this Hospital.
8. Revision of Pay Scales
It was agreed that the revision of pay scales including H.R.A. & C.C.A. etc; will be given effect from the same date the Govt. of India will revise the pay scales for its Govt. Hospitals as a result of recommendations of pay commission.
1. 14. That in view of the settlement on the above mentioned terms and conditions the employees and the Union expressly agreed not to raise any demand involving any financial commitment by implication on the management of the Hospital during the period of this settlement. The employees and union undertake to maintain discipline, harmony and peace and they will work whole heartedly, diligently and efficiently in order to serve the patients to their best. T
