THE HON'BLE SRI JUSTICE G. CHANDRAIAH WRIT PEITITON No.5729 of 2001 DATED:25.11.2010 BETWEEN B.SHIVA REDDY & OTHERS. …PETITIONERS AND THE KURNOOL DISTRICT CO OPERATIVE MILK PRODUCERS UNION LTD & ANOTHER. …RESPONDENTS. THE HON'BLE SRI JUSTICE G. CHANDRAIAH WRIT PEITITON No.5729 of 2001 ORDER: - The petitioners are the workers working in the Kurnool District Co- operative Milk Producers Union Limited. They filed this writ petition seeking issuance of writ of mandamus declaring the Proceedings No.4798/E2/GM/1986, dated 22.3.2001 of the 1st respondent i.e., Kurnool District Co-operative Milk Producers Union Limited rep., by its General Manager, Milk Products Factory, Nandyal, Kurnool District and the action of the 2nd respondent viz., the Board of Management, the Kurnool District Co- operative Milk Producers Union, Nandyal, Kurnool, dated 27.1.2001 in resolving to continue the petitioners on consolidated wages only as illegal and arbitrary and unjust and set aside the same holding that the petitioners are entitled to continue in the time scale of pay of Rs.2750-5150 for the absorbed posts of worker. The case of the writ petitioners is that they were engaged as workers on contract basis by the 1st respondent in the year 1991 and since then, they worked on contract basis for a period of four years on a monthly pay. Subsequently, with effect from 1.7.1996, they were taken into service by the 1st respondent as ‘consolidated wage worker’ on consolidates wages of Rs.900/- per month vide proceedings No.41/DGM/(Prod.)/96, dated 12.8.1996 . The consolidated wages were enhanced from time to time depending upon their nature of work and the prevailing spiral of prices. They are paid the consolidated wages at the rate of Rs.2000/- per month with effect from 1.6.2000 as per the Proceedings No.311/E3/GM/97, dated 4.7.2000. In view of their long service, the petitioners have submitted representations to the respondents on number of occasions seeking their regularisation of services in the regular category as worker. Even though the petitioners were extended the benefit of employees Provident Fund, casual leave, employees State Insurance Scheme etc., they were not regularised in spite of the representations. They submitted a representation in the year 1999 requesting the respondents to regularise their services duly absorbing them in the vacancies available on time scale basis. Even though some of the persons who are on consolidated wages were absorbed as Security Guards as per proceedings No.9049/FR.III/C5/97-1, dated 21.6.1999, the same benefit was not extended to the petitioners. Therefore, they filed another representation to the 2nd respondent basing on which, the 2nd respondent conducted a meeting on 29.10.1999 , but no decision was taken in the said meeting and the same was postponed. Therefore, they made a representation before the 2nd respondent with the same request and the same was placed before the 2nd respondent on 27.1.2000 and the 2nd respondent has refused the claim of the petitioners. Therefore, again they made a representation requesting reconsideration of the issue on 18.4.2000 and the Board of Directors have reviewed the situation and passed resolution for reconsideration of the issue in the next meeting. Meanwhile, under Voluntary Retirement Scheme adopted by the 1st respondent, 10 time scale workers and 5 security guards have abated for voluntary retirement scheme and consequently, number of vacancies have arisen. Therefore, the petitioners requested the respondents for regularisation of their services. Meanwhile on a representation submitted by the petitioners through the Assistant Commissioner of Labour, Kurnool through the proceedings R.C.No.A/2785/2000, dated 12.12.2000 advised the respondents- management to regularise the services of the petitioners in view of their long service. Pursuant to the same, the Board of Directors resolved on 20.12.2000 to absorb the petitioners on time scale of pay of Rs.2750-5150/- with effect from 1.1.2001. The petitioners were directed to produce the original certificates sought for and to submit the joining report immediately. Accordingly, the petitioners have joined the service as workers and submitted their joining report pursuant to the proceedings dated 4.1.2001, after submitting all the relevant original certificates. The 1st respondent had paid them the time scale of pay for the months of January and February 2001. While so, one of the Directors in the meeting held on 27.2.2001 raised an objection to consider the resolution passed on 20.12.2000 and to put back the petitioners on consolidated wages. Pursuant to the same, the 1st respondent issued proceedings No.4798/E2/GM/1986, dated 22.3.2000 putting back the petitioners on consolidates wages from the time scale of pay. Aggrieved by the same, the present writ petition is filed. Learned Counsel for the petitioners submits that the petitioners were initially engaged as workers in the respondent-organization in the year 1991 and thereafter with effect from 1.7.1996, they were taken into service as consolidated wage workers and with effect from 1.1.2001, the petitioners were granted time scale of pay and accordingly, they were kept in the time scale of pay. He also submitted that having regard to the length of the service of the petitioners and pursuant to the representation made to the Assistant Commissioner of Labour, Kurnool, the Assistant Commissioner of Labour by his proceedings, dated 12.12.2000 advised the respondent- organization to regularize the services of the petitioners. While so, by proceedings dated 22.3.2000, the 1st respondent put the petitioners back as workers for drawing their salary on the consolidated basis than that of the time scale. Learned Counsel for the petitioners would submit that the action of the respondents is illegal and violative of principles of natural justice. He further submits that once the petitioners get salary on the basis of time scale of pay and pecuniary right is conferred with them and without giving an opportunity to them the right cannot be taken away. Therefore, the impugned order is liable to be set aside. No counter affidavit has been filed. Along with the writ petition, the petitioners also filed WPMP No.7310 of 2001 seeking for a direction to the respondents to continue the petitioners on time scale of Rs.2750-5150 as per the Board Resolution vide Minutes No.18 of 69th Board Meeting held on 20.12.2000. This Court by order-dated 30.3.2001, granted interim direction as prayed for. The learned Counsel for the petitioners submits that the pursuant to the interim direction granted by this Court, the petitioners have been drawing their salary in the time scale of pay. As already stated, no counter affidavit has been filed by the respondents-organization disputing the averments in the writ petition. Notice issued to the respondents in the writ petition was served and further pursuant to the interim order granted by this Court, the petitioners are drawing their salary in the time scale of pay. But no appearance is entered on behalf of the respondents. The case of the petitioners is that the petitioners were initially engaged as workers in the respondent-organization in the year 1991 and thereafter with effect from 1.7.1996, they were taken into service as consolidated wage workers and with effect from 1.1.2001, the petitioners were granted time scale of pay and accordingly, they were kept in the time scale of pay i.e., Rs.2750- 5150/- vide proceedings No.741/E2/GM/2000, dated 4.1.2001. Material papers filed by the petitioners along with the writ petition reveals that the petitioners made a representation dated 5.12.2000 to the Assistant Commissioner of Labour, Kurnool requesting for regularizing the services of the petitioners and pursuant to the same, a joint meeting was fixed before the Assistant Commissioner of Labour and in the said joint meeting, the Assistant Commissioner of Labour accordingly, issued proceedings in R.C.No.A/2785/2000, dated 12.12.2000 advising the respondent- organization to regularize the services of the petitioners in view of their long service in the plant on the ground that the workman are getting all the benefits of Leave, Provident Fund, E.S.I., etc., on par with regular employees and attending to the same work as is being done by the regular employees. Pursuant to the proceedings dated 12.12.2000 of the Assistant Commissioner of Labour, the respondent organisation conducted a board meeting and pursuant to which, respondent No.1 issued proceedings No.741/E2/GM/2000, dated 4.1.2001 absorbing the petitioners as workers in the time scale of pay of Rs.2750-5150 with effect from 1.1.2001. In the said proceedings, the petitioners were directed to produce the qualification certificates, Academic Original qualification certificates, Technical original; nativity certificate original; residence certificate original; medical fitness certificate obtained from not below the rank of Civil Assistant Surgeon and agreement bond on non-judicial stamped paper of Rs.5/-. The said proceedings also contemplate terms of services: (1) They shall faithfully service the K.D.C.M.P.U. Ltd., obey its commands, depth its secrets diligently and carefully learn and perform such work and business may be entrusted to them and attend their work regularly during such hours as may be prescribed and perform such duties as may be assigned. (2) They shall be subject to the service rules and regulations including the conduct rules as well as the administrative orders of the K.D.C.M.P. U. Limited., in force from time to time and shall obey all such orders, and directions as they may receive from their superiors. (3) They will be liable to serve in any part of the Union and if necessary outside the jurisdiction of the K.D.C.M.P.U. Ltd., also. (4) They shall be abide by and are bound by all the bye-laws and service conditions in force from time to time. Thereafter, the 1st respondent issued the impugned proceedings to continue the services of the workers on the consolidated wage of Rs.2,000/- per month with retrospective effect from 1.1.2001 in lieu of time scale of pay of Rs.2750-5150 that is being paid to the petitioners prior to their absorption as workers in the time scale. In the said proceedings, it is mentioned that in anticipation by the management that there may be sufficient work in case of increase of Milk procurement/Marketing/the above workers were absorbed in the above time scale posts. But the management is extremely regretted to inform that there is a fall in Milk Procurement/Marketing/causing losses as per P & L Accounts of this Union. Hence, in view of the minutes No.2 of the 70th Board meting held on 27.2.2001, it is resolved to continue the services of the workers on the consolidated wage of Rs.2,000/- per month with retrospective effect from 1.1.2001 in lieu of time scale of pay of Rs.2750-5150 i.e., being paid to them prior to their absorption as workers in the time scale. It also says that on account of the revised orders, the difference of excess paid salary for two months i.e., 1/2001 and 2/2001 which is to be recovered is however kept in abeyance in order not to cause immediate financial hardship to the workers. There is no dispute with regard to absorption of the petitioners as regular employees paying the time scale of pay and after a period of two months, the impugned proceedings have been issued to continue the petitioners on the consolidated wage. A perusal of the said order does not contemplate any notice to the petitioners before passing such an order. In the facts and circumstances of the case and in view of the fact that the impugned order has not been accompanied by a prior notice to the petitioners and the petitioners have been continuing to be paid the time scale of pay pursuant to the interim direction granted by this Court, I am of the opinion that it amounts to violation of the principles of natural justice and thereby, the order impugned is liable to be set aside. Accordingly, this writ petition is allowed setting aside the order impugned. __________________ G. CHANDRAIAH, J Date:25.11.2010 Gurc. THE HON'BLE SRI JUSTICE G. CHANDRAIAH WRIT PEITITON No.5729 of 2001 DATED:25.11.2010