Government orders require adoption by the Board of Directors to be applicable to public sector employees, particularly in financial contexts.

ORDER :

W.P.No.40665 of 2015 has been filed to direct the respondent herein to rectify the anomaly in pay of the Petitioner on par with the juniors and consequently grant the revision of pay and grant monetary benefits with effect from 01.01.2006.

2.W.P.No.40666 of 2015 has been filed to direct the respondent herein to extend the benefits of the G.Os. namely G.O. (Ms) No.664, dated 24.08.1992 issued by the Finance (Pay Cell) Department and G.O.Ms. No.497 dated 15.09.1998 issued by the Finance (Pay Cell) Department and consequently grant 5% personal pay as on 01.08.1992 and 01.09.1998 respectively.

W.P.No.40665 of 2015:

3.The original petitioner was appointed as Junior Assistant/Typist vide Letter Lr.No. 1(2)/3568/85-86 dated 03.09.1985 on compassionate ground and he joined duty on 04.09.1985 and thereafter, he was regularised on 09.10.1987 with scale of pay of Rs.610-20-730-25-955-30-1075. The original petitioner was promoted as Packing House in charge (Senior Grade) with effect from 04.09.2005 and was paid a basic pay of Rs. 6,950/-. He expired on 02.02.2017. The daughter of the original petitioner (who was also appointed on compassionate ground), the 4th petitioner herein, was appointed as Junior Assistant on compassionate grounds vide proceedings of CMD No.El/Genl/Rect./Compassionate Ground/2017 dated 01.01.2018.

4.Learned counsel for the original petitioner would contend that in G.O.(Ms).No.664, Finance (Pay Cell) Department dated 24.08.1992, the Government has sanctioned personal pay at five percent of the basic pay to all categories of staff, who are all employees of local bodies and non-teaching staff of aided educational institutions and seeks similar relief.

5(a). Based upon the counter affidavit, the learned standing counsel for the respondent would submit that the respondent is the Tamil Nadu Magnesite Limited, which is registered under the Companies Act, 1956 managed by Board of Directors. It is involved in mining process of magnesite mineral in Salem region. It is a settled proposition of law that a G.O., is applicable to the Public Sector Undertaking only after placing it in the Board and getting due approval from majority of Directors. As the respondent being a Public Sector Undertaking, registered under Company Act 1956, G.O., cannot be applicable without being adopted by due process by the Board of Directors.

5(b). Learned standing counsel for the respondent would further submit that the adoption of G.Os, especially, with respect to emoluments or any context with financial implications depends on the then financial position/status of the company. During the year 1991-92 and 1992-93, the company was facing severe loss and was even unable to pay the salary of the employees. It is also brought to the notice of the this Court that as a result, more than 500 employees were given voluntary retirement. In such situation, the company was not in the state of adopting G.Os with financial implications. In the year 1995-96 based on the Government orders in G.O. Ms. No.304. Finance (Pay Commission) Department dated 28.03.1990 relating to Selection Grade and Special Grade, Selection Grade was given with effect from 1.1.1996 fixing the original petitioner's pay in the next scale of pay for completion of 10 years of service. Hence the original petitioner was not considered for Selection Grade by granting the benefit of one increment equal to 3% of the basic pay + Grade Pay as per G.O.Ms.No.237, dated 22.7.2013. Then the original petitioner was promoted as Senior Grade Packing House incharge on 04.09.2005. Since the original petitioner was promoted to the next level, the benefit of Special Grade had not been extended to the original petitioner.

5(c). The learned standing counsel for the respondent would further submit that Thiru.K.Mahendran, Chemist gave a representation seeking rectification of anamoly as he was drawing a lesser pay than his junior. The respondent found that the anamoly arose due to implementation of amended Service