CWP No. 18519 of 2010 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH -- CWP No. 18519 of 2010 Date of decision: 30.08.2011 Sukh Lal Soni and others ........ Petitioners Versus Haryana Financial Corporation etc. .......Respondent(s) Coram: Hon'ble Ms Justice Nirmaljit Kaur -.- Present: Mr. Ram Kumar Malik, Sr. Advocate with Ms Kohal Sharma, Advocate for the petitioners Mr. Kamal Sehgal, Advocate for the respondent Corporation Ms Priyanka Dalal, AAG, Haryana for the State -.- 1. Whether Reporters of local papers may be allowed to see the judgment? 2. To be referred to the Reporter or not? 3. Whether the judgment should be reported in the Digest? Nirmaljit Kaur, J. (Oral) This order shall dispose of Civil Writ Petition Nos. 18519 and 22786 of 2010 as the issue involved therein is identical. The petitioners herein are retired employees of the Haryana Financial Corporation (hereinafter to be referred as 'the Corporation'). Their prayer is two folds; firstly, to quash the order dated 28.08.2009 (P3) vide CWP No. 18519 of 2010 2 which, the Govt. has modified the decision of the Board of Directors of the Corporation dated 11.06.2009 (P1) and secondly, directions be issued to the Corporation to grant revise pay scales with effect from 01.01.2006 to the employees of the Corporation. In support of its prayer, learned counsel for the petitioners submitted that the Board of Directors of the Corporation is the competent authority to revise the pay scales of the employes of the Corporation under Regulation 7 of the Punjab Financial Corporation (Staff) Regulations, 1961 as applicable to the Haryana Financial Corporations. Therefore, in its meeting held on 11.06.2009, the Board of Directors of the Corporation had revised the pay scales of the employees with effect from 01.01.2006 by passing a resolution P1. However, the State Government, vide its order dated 28.08.2009 (P3), modified the decision of the Board of Directors of the Corporation to the extent that the pay scales shall be effective/applicable w.e.f. 01.09.2009 in stead of 01.01.2006. It was contended that the Board of Directors of the Corporation is the competent authority to revise the pay scales of the employees of the Corporation and the State Government has no role to play and that the said issue has already been decided by this Court vide judgment rendered in CWP No. 5271 of 1986, copy thereof placed on record as Annexure P5. Further, the State Government has refused to grant its approval to the revision of pay scales of the employees of the Corporation on the ground that the Corporation was in a precarious financial position. The said controversy has also been settled by the Apex Court in the judgment rendered in the case of Haryana State Minor Irrigation Tubewell CWP No. 18519 of 2010 3 Corporation and others v. (1) G S Uppal and others (2) Chakrawarti Garg (3) A S Dhir decided on 16.04.2008 in Civil Appeal No.9244 of 2033 with Civil Appeal No. 9239 with Civil Appeal No. 9248 of 2003. Mr. Kamal Sehgal, learned counsel appearing for the Corporation while vehemently opposing the prayer of the petitioner, contended that although there is no dispute with the fact that the Board of Directors has decided to implement the revised pay package as per notifications dated 07.01.2009 and 27.01.2009 to pay the employees of the Corporation the revised pay in cash w.e.f. 01.04.2009 opposed the arguments that the Board of Directors had also decided to grant the payment of arrears of the employees from 01.01.2006 to 31.03.2009 as well. Learned counsel submitted that it is evident from the perusal of P1 that the said decision was rather referred to the Committee comprising of MD, HFC, MD, HSIDC and GM/DGM, SIDBI, Chandigarh to take a decision towards making payment of arrears of the revised salary from 01.01.2006 up to 31.03.2009 after taking into consideration the feasibility. A short reply has also been filed by the Corporation, stating therein, that in pursuance to the said meeting of the Board of Directors, the dispute raised by the petitioners regarding making payment of the arrears with effect from 01.01.2006 up to 31.03.2009 was referred to the Committee, who in their meeting held on 09.02.2011, decided to defer the matter till the concrete plan is prepared for repayment of SIDBI's dues in terms of settlement and also on account of the precarious financial position of the Corporation. After hearing learned counsel for the parties and having CWP No. 18519 of 2010 4 perused the judgments, the following facts emerge:- 1) there is no dispute with the fact that the Board of Directors of the Corporation decided to implement the revised pay scales as per Notifications dated 07.01.2009 and 27.01.2009 and also decided that the employees of the Corporation may be paid revised pay in cash w.e.f. 01.04.2009; 2) It is also not disputed that the Board of Directors is the competent authority to revise the pay scales of its employees and the State Government has no role to play and this issue has already been decided by the Single Bench of this Court in the case of Deva Singh v. The State of Haryana and others (CWP No. 5993 of 1990, decided on 26.11.2010. 3) Letters Patent Appeal against the said judgment already stand dismissed. In view of the admitted position, this Court has no hesitation in holding that the State Government has no authority to interfere with the decision regarding revision of the pay scales of the employees of the respondent Corporation. Accordingly, the impugned order dated 28.08.2009 (P3) is quashed. Since, the Board of Directors too had taken a decision to revise the pay scales of the petitioners with effect from 01.04.2009 in their meeting held 11.06.2009, the Corporation is directed to make the payment in terms of their decision P1 i.e. with respect to payment of arrears w.e.f. 01.04.2009 onwards. Therefore, the only dispute that now survives to be adjudicated upon is the payment of arrears of the employees of the Corporation w.e.f. 01.01.2006 up to 31.03.2009. It is evident from the perusal of P1, which are the minutes of the meeting of the Board of Directors held on 11.06.2009, CWP No. 18519 of 2010 5 that the said question was left open to be decided by the committee comprising of MD, HFC, MD, HSIDC and GM/DGM, SIDBI, Chandigarh to take a final view after taking into consideration the feasibility and modalities of the payment of arrears for the said period. No final decision qua the same was taken in the meeting held on 11.06.2009. The Corporation too in their reply have stated that the matter stands referred to the committee in pursuance to P1 and that the said resolution passed in the meeting of the Board of Directors of the Corporation cannot be interpreted in any other way. Learned counsel for the petitioners while interpreting the said resolution argued that the decision to pay with effect from 01.01.2006 was final and the matter was referred to the Committee only with respect to the modality of the payment and that this was substantiated from the fact that modality of the payment for the period after 01.04.2009 was decided to be made in cash. Since, it is the resolution passed in the meeting held on 11.06.2009, which is being interpreted by the learned counsel for the parties to read as to whether the Board had finally decided to grant the arrears w.e.f. 01.01.2006 or not, the relevant part of the same is required to be reproduced and the same reads:- “The Board discussed the proposal and the key financial parameters of the Corporation as per the agenda note. After detailed deliberations, the Board decided to implement the revised pay package as per notifications dated 07.01.2009 and 27.01.2009 of the State Govt. and decided that the employees of the Corporation may be paid revised pay in cash w.e.f. CWP No. 18519 of 2010 6 01.04.2009 after computing the payable salary as on 01.04.2009 along with revised House Rent Allowance. The arrears for the months of April, May and June 2009 be paid along with the salary of the month of July 2009. Further, the Board decided to constitute a Committee comprising of MD, HFC, MD, HSIDC and GM/DGM, SIDBI, Chandigarh to take a view regarding feasibility and modalities of a payment of arrears of the employees from 01.01.2006 upto 31.03.2009. The recommendations of the Committee may be put up to the Board for taking a decision.” There is no dispute that the resolution is in two parts. There is no dispute that in the Ist part, decision has been taken to implement the Notifications dated 07.01.2009 and 27.01.2009. In pursuance to the same, there is also no dispute that in the same part, a decision was taken to grant the revised pay scales from 01.04.2009 onwards in cash. The second part related to payment of revised arrears of pay scales from 01.01.2006 up to 31.03.2009. A perusal of the 2nd part minutes of the meeting reproduced also talks of both the “feasibility and modalities” of making the payment for arrears w.e.f. 01.01.2006 to 31.03.2009. Meaning thereby, that first it will have to be determined as to whether it was feasible to grant arrears of salary for the period at all and if the decision is in the affirmative, the modalities of how to make the payment will have to be worked out i.e. whether in cash, installments or any other mode. The same cannot be read to mean otherwise. The fact that the Board had not decided finally qua payment for the period w.e.f. 01.01.2006 to 31.03.2009 is also evident from the fact that the Committee constituted by the Board vide its decision dated 11.06.2009 CWP No. 18519 of 2010 7 submitted its recommendations which were placed before the Board in its meeting dated 20.12.2010 for taking a final view in the matter. After taking notice of the recommendations of the Committee, the Board of Directors decided to re-examine the matter with regard to payment of arrears on account of the revision of pay scales. The Board of Directors of the Corporation resolved to constitute a committee comprising of the Financial Commissioner and Principal Secretary to Government, Haryana, Industries Department, Managing Director, HFC and HSIDC and Advisor Finance vide its decision dated 20.12.2010 to re-examine the issue and submit its recommendations. The above said Committee met on 09.02.2011 to consider the payment of arrears on account of revision of pay scales and in their meeting decided as under:- “The committee considered the Agenda and discussed in detail the projected cash flow statement for the next three years. The committee observed that the Corporation has to pay Rs.130.00 crores to SIDBI in terms of their settlement in the next three years and resources of the Corporation are not sufficient to meet out the repayment of SIDBI and to take care of other expenditure. The committee further noted that after making provision of arrears on account of revision of pay scales and other contingent liabilities the Corporation is expected to face a short fall of about Rs.98.00 crores (approx.) in the next three years. The committee also took note of the fact that the State Government is yet to approve the one time settlement as conveyed by SIDBI. The committee, therefore, decided that till the concrete plan is prepared for repayment of CWP No. 18519 of 2010 8 SIDBI's dues in terms of settlement, the matter may be deferred.” Thus, even though the Government has no authority to interfere in the decision of the Board, in the present case, the Board itself had not taken any decision qua payment of arrears for the period 01.01.2006 to 31.03.2009 and had referred it to the Committee to send its recommendations. The Committee as is evident from above has deferred the matter. In view of the above, the present petition is partly allowed to the extent that the order dated 28.08.2009 (P3) passed by the State Government is quashed. However, the Board shall proceed to make the payment of the revised pay scales w.e.f. 01.04.2009 forthwith. The question with respect to the payment of arrears from 01.01.2006 to 31.03.2009 is left open for the Committee to decide in accordance with law and in accordance with the decision taken in the meetings held on 11.06.2009 (P1). At this stage, learned counsel for the petitioners prayed for implementation of Agenda Item No. 226.10 passed in the meeting of the Board of Directors of the Corporation held on 31.05.1995 (P2) qua grant of medical facility to all the retired employes and their dependents on the pattern of the Statement Government as revised from time to time. Mr. Kamal Sehgal, Learned counsel appearing for the respondent-Corporation pointed out that the same has been declined vide M.D's orders dated 03.02.2001 and the decision has been ratified by the Board of Directors of the Corporation in their meeting held on 31.03.2011. The said order has not been challenged in the present writ petition by the petitioners. CWP No. 18519 of 2010 9 Accordingly, the petitioners are at liberty to challenge the same separately in accordance with law. Disposed of in the above terms. (Nirmaljit Kaur) Judge 30.08.2011 mohan