IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE P.S.GOPINATHAN TUESDAY, THE 2ND FEBRUARY 2010 / 13TH MAGHA 1931 WA.No. 2153 of 2009() --------------------- AGAINST THE JUDGEMENT/ORDER IN WPC.3409/2008 Dated 23/07/2009 .................... APPELLANT(S): -------------- KERALA STATE CO-OPERATIVE CONSUMER FEDERATION GANDHI NAGAR, KOCHI-REPRESENTED BY ITS MANAGING DIRECTOR. BY ADV. SRI.M.SASINDRAN RESPONDENT(S): --------------- 1. THE KERALA CO-OPERATIVE WORKERS FEDERATION, E.P. SAMARAKA MANDIRAM, YOGHASHALA ROAD, KANNUR-01, REPRESENTED BY ITS SECRETARY. 2. FREDDY J. FIBITHA BHAVAN, RAJEEV NAGAR, BEACH P.O., THIRUVANANTHAPURAM-7, SALES HELPER, TRIVENI SUPER MARKET, MANAKKAD, THIRUVANANTHAPURAM. 3. THE REGISTRAR OF CO-OPERATIVE SOCIEIES, THIRUVANANTHAPURAM,. 4. STATE OF KERALA-REPRESENTED BY SECRETARY TO GOVERNMENT, CO-OPERATION, THIRUVANANTHAPURAM. R3 AND R4 BY G.P. SMT. LAKSHMI NARAYAN. THIS WRIT APPEAL HAVING BEEN FINALLY HEARD ON 02/02/2010 THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C .N. RAMACHANDRAN NAIR & P.S. GOPINATHAN, JJ. -------------------------------------------- W. A. No. 2153 OF 2009 -------------------------------------------- Dated this the 2nd day of February, 2010 JUDGMENT Ramachandran Nair, J. Appellant, a federation in the Co-operative sector under the control of the Government, is engaged in running retail outlets selling essential commodities and Indian made Foreign Liquor as licensees. Large number of employees were employed on contract basis and on daily wage basis to work as Data Entry Operators, sales helper, etc. On noticing long term employment of these people, the Government directed regularisation of as many as 610 employees, which was in fact done by the appellant. However, so far as wage increase is concerned, Government fixed a cut-off date, namely, 31.3.2001 with reference to which services of employees were reckoned for granting various percentages of wage increase. When the Unions and employees challenged the basis for giving various percentage of wage increase, the learned single Judge found that cut-off date based on which various percentage of wage increase was ordered works out arbitrary and 2 discriminatory and consequently, Ext.P4 order issued by the Government was struck down against which this Appeal is filed. 2. During hearing, counsel for both sides agree that regularised employees had various periods of service prior to regularisation. Wage increase could be granted at different rates based on a rational basis, like, length of service or even educational qualification which in this case is certainly length of service. We agree with the learned single Judge that cut off date will work out arbitrary because the employee who joined one day before 31.3.2001 will get higher rate of wage increase while another employee who joined the next day, that is on 1.4.2001 will get lower rate of wage increase. On the other hand, if the percentage of wage increase is fixed based on length of service, the same may be quite rational and sustainable. We therefore do not find any ground to interfere with the findings of the learned single Judge upholding the contention of Unions that basis of wage increase at different rates fixed under Ext.P4 is arbitrary. However, we make it clear that Government in consultation with the appellant and unions should fix a rational basis for granting wage increase. Since counsel 3 for the appellant highlighted the financial plight of the appellant, we are sure the Government will take into account the financial capacity of the appellant as well while fixing the wage increase. W.A. is disposed of as above. (C.N.RAMACHANDRAN NAIR) Judge. (P.S. GOPINATHAN) Judge. kk 4