Excelsior Correspondent
Srinagar, Apr 28: Observing that the loss-making public sector can’t be forced to revise the pay scale of its employees, High Court has dismissed the plea of employees of Centaur Hotel seeking revision in their pay scale.
Justice Sanjay Dhar said that a loss making public sector entity cannot be forced to revise the pay scale of its employees as the employees of the Government Company or a corporation, which has a separate entity from the Government itself, cannot equate themselves with the Government employees.
The Centaur Hotel Officers Welfare Association had filed the writ petition, primarily; seeking a direction upon the respondents to revise their pay scales with effect from 01.01.2007 in terms of office memorandum dated 26th November, 2008 and to effect further revision of their pay on the basis of office memorandum dated 3rd August, 2017.
The court while dismissing their plea said, it is only if the financial health of the Government Company or a corporation is sound that its employees can claim revision of pay scales. Court said the revised pay scales have to be adopted subject to the condition that such revision should not result in more than 20% dip in the profit.
“Clause (16) of the said memorandum further provides that CPSE has to bear the additional financial implications on account of pay revision from their own resources and no budgetary support will be provided by the Government”, reads the judgment.
Senior counsel R A Jan appearing for the petitioner Association contended that at least 10% to 20% of increase in basic pay plus DA has to be given in terms of Clause (4) of the rule. “The argument is without merit as the said increase has to be given with approval of the Ministry and Clause (16) provides that the Government will not provide any budgetary support”, Court replied.
Court said the increase of 10% to 20% in pay etc. has to be given from the resources of the Corporation. Since the administration of Hotel is admittedly, loss -making entities, as such, they cannot be compelled to pay the increased pay scales in terms of Clause (4) to its employees.
Court clarified that the revision of pay by a Government company or a public sector undertaking is a policy decision which it has to take, after considering various factors which include its financial viability and, of course, the rate of inflation and cost of living.
“However, rate of inflation and cost of living are not the only factors which are to be considered while taking a decision regarding revision of pay but the financial viability of the company or corporation is equally important while taking a decision in this regard”, Justice Dhar recorded.
Court has held the submissions of the petitioner counsel that by implementing the revision of pay of Unionized employees, they have been invidiously discriminated, is also without any merit. “The officers of the petitioner Association is a different class and their case cannot be equated with the case of Unionized employees who have been given revised pay scale in terms of a negotiated settlement pursuant to award of the Industrial Tribunal”, reads the judgment.
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