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2001 Supreme(Gau) 34

GAUHATI HIGH COURT
J.N.Sarma, J.
Proveen Choudhury -Appellant
Versus
Union of India -Respondent
Civil Rule No. 6507 of 1998
Decided On : 16-02-2001

Advocates Appeared:
P.C.Deka, S.K.Medhi, P.K.Barman, M.Sharma, K.K.Mahanta, D.Goswami, A.C.Borbora, P.K.Goswami

The main legal point established in the judgment is the principle of fairness and the employees' legitimate expectation to exercise the option to switch over to the IDA pattern of scales of pay within the legal framework.

Headnote:

Supreme Court Judgment - Pay Scales Revision - Industrial DA Pattern, HPPC Recommendations - [Supreme Court Judgment, Industrial DA Pattern, HPPC Recommendations] - The court discussed the implementation of High Power Pay Committee (HPPC) recommendations and the option to switch over to the Industrial DA pattern of scales of pay. The court highlighted the employees' right to exercise the option and the subsequent clarification by the Ministry of Petroleum and Natural Gas regarding the prospective effect of switching over from the CDA pattern to the IDA pattern. The judgment emphasized the principle of fairness and the need for magnanimity from the management in granting benefits to employees within the legal framework.

Fact of the Case:

The employees of BRPL sought the benefit of switching over to the IDA pattern of scales of pay from a retrospective date, citing the lack of clarity and uncertainty regarding the financial benefits of the switch over. The Union of India clarified that the switch over would be allowed from a prospective date only, leading to a dispute between the employees and the management.

Finding of the Court:

The court found that the employees had a legitimate expectation to exercise the option to switch over to the IDA pattern of scales of pay and that the benefit should be granted within the legal framework. The court emphasized the need for magnanimity from the management and ruled in favor of the employees, directing the payment of arrears salary from December 1996.

Issues: The main issue revolved around the employees' right to switch over to the IDA pattern of scales of pay from a retrospective date and the clarification provided by the Ministry of Petroleum and Natural Gas regarding the prospective effect of the switch over.

Ratio Decidendi: The court's decision was based on the employees' legitimate expectation, the principle of fairness, and the need for magnanimity from the management in granting benefits to employees within the legal framework. The court emphasized the importance of considering the employees' demands and ruled in favor of granting the benefit from December 1996.

Final Decision: The court allowed the writ application, quashed the orders dated 23.10.98 and 20.11.98, and directed the payment of arrears salary within three months from the date of the order.

This writ application has been filed by 19 persons. They are employees/ executives of respondent No. 4 Bongaigaon Refinery Petrochemical Limited at Dhaligaon (for short BRPL). In the year pursuant to a direction given by the Hon'ble Supreme Court in a number of writ petitions filed by the employees of various Govt of India undertakings regarding revision of pay scales etc, a High Power Pay Committee (for short HPPC) was appointed by the Supreme Court. The said committee submitted recommendation and on consideration of the same. Govt of India came out with a proposal before the Supreme Court and the end that the scales of pay and Deamess allowance as recommended in the report will be extended to the employees of Public Sector Undertakings which were being paid Central Dearness Allowances (CDA). The Court further directed that these employees will continue to enjoy the option to switch over to the IDA pattern of scales of pay etc on voluntary basis. Pursuant to the aforesaid direction of the Supreme Court and acceptance of the recommendations of the HPPC by the Central Govt, the Ministry of Programme Implementation and Department of Public Enterprises issued an office memorandum on 12.6 90 applying the recommendations of the HPPC to the Public Enterprises. By the said OM it was declared that the employees in respect of whom the recommendations of the HPPC were being implemented would get revision as and when similar changes are affected for the Central Govt employees. It was further declared that the employees will have option to switch over to the IDA pattern and related scales of pay notified by the Govt on voluntary basis. In the year 1992 i.e. on 31.3.92 the BRPL adopted IDA pattern related scales of pay in respect of its executives. It was clearly stated that the executives who are in the CD A scales of pay shall have option to switch over IDA pattern and related scales of pay on implementation of the HPPC and that such option can be exercised from a date not earlier than 1.1.1989. The period within which the option to be was given was limited up to 31.12.91 but ultimately it was extended up to 24.8.92. As many as 136 executives of BRPL exercised. their option on 26.8.92 pursuant to the letters of request issued by the BRPL asking its executives to exercise option. Though option was exercised in the year 1992 they were given the benefit from a back date i.e. they were allowed to switch over from 1.1.89. The option was not exercised by about 42/43 employees including the petitioners along with other 136 executives. These petitioners did not exercise option because at that point of time the IDA pattern of scale was not declared and they had no means to know what would be the scales meaning thereby whether by such switch over they will be financially benefited or not. Thereafter a circular was issued in the year 1996 i.e. on 22.2.96 by which the revision of pay scale was notified and all the executives who were entitled to IDA pattern was also notified with effect from 1.1.92. After 22.2.96 the petitioners came to know about the revision of IDA pattern of scales and uncertainties in their minds was removed and they came to know that this switch over shall be financially beneficial to them. Immediately thereafter all the petitioners who did not exercise options till then, submitted identical letters to the BRPL management i.e. on 24.8.96 exercising their option to switch over to the IDA pattern related scales on a voluntary basis. That letter is Annexure G series. One of the letter is quoted below :

"The Manager (Personnel & Administration Esstt) Dated 24th of August 1996

BRPL HO Dhaligaon (Assam) (Through Proper Channel)

Dear Sir,

In inviting a reference to Govt of India, Ministry of Programme Implementation, Department of Public Enterprises, New Delhi's letter No.2(43/90/DPE/(WQ dated 12th June 1990 followed with the judgment of the Supreme Court of India dated 3.5.90,1, the undersigned do hereby for the Industrial DA Pattern and




























































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