Civil Writ Petition No. 5434 of 1991 -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Civil Writ Petition No. 5434 of 1991 DATE OF DECISION: September 13, 2011 Sh. Des Raj Chander & others .....Petitioners VERSUS Punjab State Seeds Corporation Ltd. & others ....Respondents CORAM:- HON'BLE MR.JUSTICE RANJIT SINGH 1. Whether Reporters of local papers may be allowed to see the judgement? 2. To be referred to the Reporters or not? 3. Whether the judgment should be reported in the Digest? PRESENT: Mr. A.P. Bhandari, Advocate for the petitioners. None for the respondents. **** RANJIT SINGH, J. The petitioners are the employees of Punjab State Seeds Corporation Ltd. (for short 'PUNSEED') and have approached this Court in the year 1991 with a prayer that they are entitled to the revised pay-scales w.e.f. 1.1.1986 and not w.e.f. 11.3.1991 as were allowed to them. The petitioners would seek modification of the order to this effect and pray for grant of arrears for the period from 1.1.1986 to 11.3.1991. Petitioners No.1 to 4 and 11 & 12 are Office Assistants, petitioners No.5 to 7 are Accountant Assistants and petitioner No.8 is Engineer Assistant and petitioners No.9 & 10 are Senior Clerks. They all are working with the respondent-Corporation. Though petitioner Civil Writ Petition No. 5434 of 1991 -2- No.11 was dismissed on 14.3.1991, but still his right to claim arrears of revised pay-scale w.e.f. 1.1.1986 would survive despite his dismissal. The respondent-Corporation had adopted all the rules and regulations as well as the pay-scales of Punjab Government for its employees. Service conditions of the petitioners are also governed by the rules framed by the State of Punjab except to the extent that if any regulations have been made by the respondent- Corporation. Regulation 7.14 of the PUNSEED provides that employees of a Corporation shall receive such allowance as may be sanctioned by the Punjab Government from time to time to their employees except where the Board decide to allow other allowances or allowances at higher rates. Accordingly, it is pleaded that the petitioners were entitled to pay-scales, which were given to the State Government employees. The Board of Directors in its meeting held on 31.1.1990 had passed the resolution granting approval regarding the revision of pay scales to the employees of the Corporation as was recommended by the Committee constituted by the Government of Punjab. The Punjab Government constituted the 3rd Pay Commission, which submitted its report and the recommendations were enforced w.e.f. 1.1.1986. Keeping in view the aforesaid regulations, the petitioners were given pay scale of `1500-20-1560- 40-2000-50-2400-60-2640/-. This was the scale notified by the State Government for its employees w.e.f. 1.1.1986. These scales were required to be made applicable to the petitioners w.e.f. 1.1.1986 and the petitioners were entitled to receive the arrears as well. Civil Writ Petition No. 5434 of 1991 -3- In its 69th meeting held on 30.1.1990, the Board of Directors of the Corporation approved the grant of pay scales to the employees in accordance with the Punjab revised pay scales w.e.f. 1.1.1986. The Board of Directors further authorized respondent No.2 to implement the recommendations of 3rd Pay Commission as adopted by the Punjab Government and as amended from time to time. The relevant extract of this resolution is annexed with the petition as Annexure P-1. The State of Punjab further revised the pay scales of Senior Clerks and the Assistants vide notification dated 15.6.1990. The Punjab Government revised the scales admissible to its Assistants to `1800-40-2000-50-2400-60-2700-75-3000-100-3200/-. The respondent-Corporation, however, did not implement the revised pay scales despite recommendation by the Board of Directors. Aggrieved against the same, the petitioners had filed various representations. The petitioners, thereafter, filed a writ petition before this Court, which was allowed on 13.12.1990 directing the respondents that they should decide the representations of the petitioners within three months from the date of order. The representation was decided on 11.3.1991. The respondents decided to revise the pay scales w.e.f. 11.3.1991 and not w.e.f. 1.1.1986. The reason given to deny the arrears is recorded in Annexure P-6. The relevant portion thereof reads as under:- “I herby decide that the revised pay-scales as given in the notification dt.15.6.90 will be implemented from today. i.e. 11.3.91. However, it would be possible to give the arrears of the revised pay- Civil Writ Petition No. 5434 of 1991 -4- scales w.e.f. 1.1.86 only when the Pb. State Seeds Corpn. is in a position to make profits.” Thus, the revised pay scales have been allowed. The arrears were denied on the ground that the same would be considered when the Corporation is in a position to make profits. The writ petition was admitted. In the reply, it is alleged that the petitioners have withheld and concealed resolution where the decision was taken to implement the revised pay scales from the date of resolution. Otherwise it is not disputed if the petitioners really are to be paid the arrears or can be paid the arrears now on any subsequent date on the basis that the respondents have made some profits. This aspect is not clarified in the reply. No one has appeared on behalf of the respondents. Instead of waiting for a counsel to appear, it is decided to hear the case and to decide the same finally. Some averment is made in the reply to the effect that the Corporation had taken loan from the National Seeds Corporation and Growers Shareholders and it suffered losses. Even for its day to day working, the Corporation had also taken cash credit limit loan from the Punjab national Bank. It is, accordingly, stated that decision was taken to dispose of the assets and efforts are being made in the best interest of the Corporation and so the decision was taken to pay the scales not retrospectively but w.e.f. 11.3.1991. In view of the factual position as noticed above, the present writ petition is disposed of with the direction to the respondents to pass a fresh order for grant or denial of arrears w.e.f. 1.1.1986. If the respondent-Corporation is still not in a position to Civil Writ Petition No. 5434 of 1991 -5- discharge this liability, it must so inform the petitioners. The total liability payable to the petitioners be also taken into account while passing any order. There may not be much liability for the petitioners, who apparently by now would have retired. The respondents may also consider whether the financial constraints would be a reason enough to deny the rights of the petitioners in case they have been held entitled. Justification for grant of pay scales from the date of order may also be considered and reason in this regard be intimated to the petitioners. If the petitioners are still not paid the arrears, they would be at liberty to approach this Court again. September 13, 2011 ( RANJIT SINGH ) monika JUDGE