Disparity in pay scales among similar public sector undertakings constitutes violation of constitutional equality, requiring rectification for fair employment practices.

JUDGMENT

V. Kameswar Rao, J. This petition has been filed with the following prayers:-

"It is, therefore, most respectfully prayed that this Hon'ble Court may kindly be pleased to:

a) issue writ, order or direction in the nature of Certiorari Quashing setting aside the impugned Order issued by respondent No.1, Ministry of Power (MOP), Government of India dated 27.12.2013 qua Respondent no.2;

b) issue writ, order or direction in the nature of Mandamus for regularization of Pay Scales of below Board level executives of REC w.e.f. 01.01.1997 drawn between 1.1.1997 to 21.12.2006, as has been done for the other seven public sector undertakings under the same Ministry Power w.e.f. 01.01.1997 and ensure that employees of REC are not in disadvantageous position in comparison to their counterparts in other Power Sector CPSEs; and

c) pass such other order or orders as this Hon'ble Court may deem fit in the facts and circumstances of the present case."

2. The instant petition has been filed by an association of officers, called REC Officer's Association, through its General Secretary, representing officers from technical and non-technical cadres of REC Ltd. (formerly Rural Electrification Corporation Ltd., `REC', for short and respondent No. 2 herein), a Central Public Sector Undertaking (`CPSU', for short) under the Ministry of Power, Government of India (respondent No. 1 herein). The petition challenges the disparity in the pay scales between the employees of respondent No.2/REC vis-a-vis seven other PSUs under the same Ministry, viz.-

(a) NHPC Ltd. (`NHPC', for short)

(b) NTPC Ltd. (`NTPC', for short)

(c) THDC India Ltd. (`THDC', for short)

(d) SJVN Ltd. (`SJVN', for short)

(e) POWER GRID Corporation of India Ltd. (`POWER GRID', for short)

(f) Power Finance Corporation Ltd. (`PFC', for short)

(g) North Eastern Electric Power Corporation Ltd. (`NEEPCO', for short).

3. It contended by Mr. Rakesh K Khanna, learned Senior Counsel appearing on behalf of the petitioner/Association, that the Department of Public Enterprises (`DPE', for short), Ministry of Heavy Industries and Public Enterprises, Government of India, issued an Office Memorandum (`OM', for short) dated June 25, 1999 whereby guidelines were issued to all Administrative Ministries/Departments and to all the Central Public Sector Enterprises (`CPSE', for short)/CPSUs under their control to revise the pay scales of Board Level Posts and below-Board Level Posts including non-unionised Supervisors w.e.f. January 01, 1997 on Industrial Dearness Allowance (IDA) Pattern.

4. Mr. Khanna would submit that some oil companies under the Ministry of Petroleum and Natural Gas, Government of India, adopted higher pay scales and a 4% rate of annual increment. On July 06, 2000, NTPC issued an Office Order bearing No. 444/2000 whereby higher pay scales with 4% rate of increment for Executives were formulated and implemented w.e.f. January 01, 1997, as was done by oil sector companies like Oil and Natural Gas Corporation Ltd. (`ONGC', for short), in deviation to DPE scales. It is submitted that the Ministry of Power vide letter bearing No. 8/10/98-Th. I dated July 03, 2000 approved of the revision and increment. Relevant portion of the letter is reproduced as under:-

"xxx xxx xxx

this ministry do not have any objection to the revised pay scales etc. as proposed in your letter No.01: PERS: 28(1)/2 dated 26.5.2000 being considered by the Board of the NTPC in so far as they are in line with those adopted by the ONGC/IOC.

xxx xxx xxx"

5. It is stated that similar letters of no objection were issued by the Ministry of Power to PFC and POWER GRID. Relevant portion of the letters are reproduced as under: -

Letter bearing No. 32024/21/99-PFC dated August 28, 2000 sent to PFC:

"xxx xxx xxx

Ministry do not have any objection to the revised pay scales etc. being considered by the Board of the PFC in so far as they are in line with those adopted by the NTPC.

xxx xxx xxx"

Letter bearing No. 11/11/99-PG