2021 Supreme(SC) 312

SUPREME COURT OF INDIA
SANJAY KISHAN KAUL, HEMANT GUPTA, JJ.
Punjab State Co-Operative Milk Producers Federation Ltd. and Another – Appellants
Versus
Balbir Kumar Walia and Others – Respondents
Civil Appeal Nos. 7427, 7429, 7430, 7431, 7432, 7433, 7434, 7435 of 2011
Decided On : 09-07-2021

IMPORTANT POINTS
(1) Grant of benefits of higher pay scale to Central/State Government employees stand on different footing than grant of pay scale by an instrumentality of State.
(2) Classification on the basis of qualifications, educational or by experience, for fixation of pay is permissible under Constitution.
(3) Entire profit is not to be appropriated towards wages of employees alone.
(4) Classification of different pay scales is permissible based upon educational qualifications, experience and nature of duties.

Headnote:

(A) Service Law – Pay Scale – Parity – Central or State Government is empowered to levy taxes to meet out expenses of State – It is always a conscious decision of government as to how much taxes have to be levied so as to not cause excessive burden on citizens – But Boards and Corporations have to depend on either their own resources or seek grant from Central/ State Government, for their expenditures – Grant of benefits of higher pay scale to Central/State Government employees stand on different footing than grant of pay scale by an instrumentality of State – Federation has taken a conscious and concerted decision to not follow report of Anomaly Committee of State Government to grant revised pay scale from 1.1.1986 in view of precarious financial condition – Financial assistance had to be availed by Federation from State Government as well as from National Dairy Development Board – Federation was in financial difficulties is based upon relevant material before Federation – Process to arrive at such decision can be said to be flawed only on permissible grounds of illegality, irrationality and procedural impropriety – Neither decision-making process, nor decision itself suffers from any such vice – Income generated by Federation is not to be expanded only on payment of salary but is also required for upgradation of technology, renovation and expansion of plants etc. – Entire profit is not to be appropriated towards wages of employees alone – Federation was established as a step towards white revolution – Objective of the Federation was not to give employment but to increase milk production in the State – Employees are facilitators of employer to achieve such objective and demanding enhanced wages without considering objective and financial condition of employer would not be ideal – Employer and employees have to work together to achieve objective of organisation i.e. white revolution rather frittering away gains made by joint efforts of management and employees by giving increased wages to employees irrespective of its capacity to bear such expenses – Order of High Court is unjustified and in excess of power of judicial review conferred on High Court – Orders passed by High Court set aside and writ petitions dismissed. [Constitution of India – Article 12; Punjab State Co-operative Milk Producers Federation Services (Common Cadre) Rules, 1980] (Paras 32, 41, 49, 50 and 52)

(B) Service Law – Pay Scale – Equal Pay for Equal Work – Classification on the basis of qualifications, educational or by experience, for fixation of pay is permissible under Constitution – Different educational qualifications and experience is prescribed for appointment to Milk Procurement Assistants Grade-I & II – As per staffing pattern, educational qualifications for Milk Procurement Assistants Grade-I are Bachelor’s Degree with minimum three years’ experience of Organisation of Milk Producers Co-operative Societies affiliated with Milk Producers Co-operative Unit whereas for Milk Procurement Assistant Grade II, qualification is Graduation preferable in Agriculture with one year experience of working as Secretary in a Co-operative Milk Supply Society – Educational qualifications and responsibilities of two posts are quite different – Principle of equal pay for equal work would not be applicable to them inasmuch as Grade I is a higher post having higher duties and responsibilities than Grade II – Classification of different pay scales is permissible based upon educational qualifications, experience and nature of duties. (Paras 56, 57, 58, 62 and 63)

Facts of the case:

Present appeals are directed against an order passed by Division Bench of the High Court of Punjab & Haryana at Chandigarh on 19.3.2009 whereby the writ petitions filed by respondents1 herein were allowed holding that the Punjab State Co-operative Milk Producers Federation Ltd. is a State within the meaning of Article 12 of the Constitution of India and that the employees are therefore entitled to pay scale equivalent to their counterparts in the State of Punjab from 1.1.1986, though the revised pay scale was allowed by Federation w.e.f. 1.1.1994.

Findings of Court:

Classification on the basis of qualifications, educational or by experience, for the fixation of pay is permissible under Constitution. The qualifications of Milk Procurement Assistant Grade-I or Animal Husbandry Assistant is Graduation/Matriculation with live-stock Diploma course whereas the essential qualifications for the post of Dairy Extension Officer and for the post of Deputy Manager (Procurement) is B.Sc. Dairy Husbandry/Dairy Technology with two to three years’ experience.

Result : Appeal allowed.