Case: BIHAR STATE BEVERAGES CORPORATION LTD Vs. NARESH KUMAR MISHRA

3. That all the original Writ Petitioners are working with the Appellant Corporation on different posts since 2006. That the Appellant Corporation came into existence in view of the decision of the State Government in the year 2006 when it was incorporated as a Government Company in terms of Section 617 of the Companies Act with its main objective being to improve the excise revenue of the Government of Bihar. It appears that a decision was taken not to make any appointment in the Corporation by direct recruitment, but to bring the employees by way of contract/deputation from amongst the employees of the other Board and Corporation and also from retired employees of the Board and/or Corporation of the State or the Central Government. Therefore, as such, there is not a single employee working with the Corporation appointed by the Corporation by way of direct recruit. The Appellant Corporation issued an Advertisement on 18.8.2006 for making appointment by way of contract/deputation of the employees of other Board and Corporation and also from the retired employees of the Board and/or Corporation of the State or Central Government. Such appointment was to be made on the post of Manager, Accounts Officer, Accountant, Assistant Accountant, Depot Manager etc. The advertisement also prescribed pay scale which was then prevalent in the State Government as per the recommendation of the 5 th Pay Revision Committee. The respective original Writ Petitioners in both the writ petitions were the employees of the Bihar State Corporation Coordinating Unit (BISCOMAUN); Bihar State Pharmaceutical and Chemical Development Corporation; Bihar State Handloom and Handicraft Development Corporation; Sone Command Area Development Agency; Land Mortgage Bank; Pandaul Co-operative Spinning Mills Ltd., as the case may be. That, all of them applied pursuant to the aforesaid advertisement. All of them were selected on various posts in the Corporation.3.1 It appears that the employees working with the Corporation were denied the benefit of the pay scale as per the recommendations of the 6 th Pay Revision Committee. It appears that, as such, the Board of Directors of the Corporation in its meeting dated 18.5.2010 resolved that the employees appointed on deputation/contract would be granted revised pay scale. However, the Finance Department raised an objection against grant of revision of pay scale as per the 6 th Pay Revision Committee to the employees on deputation and/or contract basis working with the Appellant Corporation and advised the Corporation to grant the benefit of 6 th Pay Revision Committee only to the employees of the Corporation and not the employees working in the Corporation on deputation. It appears that, thereafter, the Board of the Corporation in its meeting passed a resolution on 27.3.2012 (as per the Corporation, the said resolution was passed in the light of the letter dated 30.11.2011 of the State Government) and it was resolved that all those employees working with the Appellant Corporation on deputation shall be paid the pay scale payable in their parent Corporation and deputation allowance.3.2 Therefore, the original Writ Petitioners preferred the aforesaid writ petitions before the High Court for an appropriate direction to the Corporation to grant them the pay scale of 6 th Pay Revision Committee with effect from 1.1.2006 notionally and financial benefit with effect from 1.4.2007. In CWJC No. 9760 of 2012, one additional prayer was made for quashing of the resolution of the Board of Directors dated 27.3.2012.4. That the learned Single Judge though found that if the resolution dated 27.3.2012 is implemented, in that case, there will be disparity in the payment of salary to the original writ petitioners and other employees of the Corporation working on deputation and doing the same nature of work for the same post, dismissed both the petitions on the ground that if the original Writ Petitioners who are on deputation are given the pay scale of the 6 th Pay Revision Committee, the other employees working in the parent Corporation would be getting the less salary as their respective parent Corporations/Boards have not implemented and/or granted the benefit of the 6 th Pay Revision Committee. By dismissing the writ petitions, learned Single Judge also considered Rule 282 and 283 of the Bihar Service Code. However, while dismissing the petitions, the learned Single Judge gave the liberty to the writ petitioners to file the individual representation explaining the disparity in the matter of payment of their salary viz-a-viz their counter-part working on the same post and doing the same nature of work and directed the Corporation to take an appropriate decision. Learned Single Judge also observed that if such decision is in favour of the Writ Petitioners, then the said decision shall be given effect from 15.5.2012, the date on which the Corporation?s decision dated 27.3.2012 was implemented.4.1 Feeling aggrieved and dissatisfied with the judgment and order of the learned Single Judge dismissing the writ petitions, the original Writ Petitioners preferred the aforesaid Letters Patent Appeal No. 112 of 2016 and Letters Patent Appeal No. 568 of 2016. That, by impugned common judgment and order, the Division Bench has allowed both the Letters Patent Appeals and quashed and set aside the common judgment and order passed by the learned Single Judge and consequently the resolution of the Corporation dated 27.3.2012 and directed the Corporation to follow the ?Principle of Equal wages for equal work? in the matter of grant of pay scale. The Division Bench also directed the Corporation to pay the revision of pay scales in terms of the 6 th Pay Revision Committee and resolution of the Board of Directors dated 18.5.2010.4.2 Feeling aggrieved and dissatisfied with the impugned common judgment and order passed by the Division Bench, the Bihar State Beverages Corporation Ltd. and others have preferred the present appeals.

Court's reasoning:
8. Now, so far as the quashing and setting aside the resolution dated 27.3.2012 by which the Corporation resolved to pay salary to the employees of the Corporation as is being paid in the parent Board/parent organization is concerned, it is required to be noted that it is not in dispute that the respective original Writ Petitioners are on deputation from different Boards/Organizations. Therefore, if the resolution dated 27.3.2012 is permitted to be implemented, in that case, there shall be disparity in the pay scale/salary of the employees of the Corporation doing the same/similar work. There may be different pay scales/salaries in the respective parent organizations. However, when they are working with the Corporation and doing the similar work, they have to be paid the salary which is paid to other employees doing the same/similar work. It is not in dispute that the employees working on different posts in the Corporation are doing the same/similar work. Therefore, the Division Bench of the High Court has rightly applied the ‘Principle of Equal Pay for Equal Work? and has rightly quashed and set aside the resolution dated 27.3.2012.8.1 Challenge to the resolution dated 27.3.2012 is also required to be considered from another angle. At the time of advertisement and inviting the applications, the employees were offered the specific pay scales against respective posts. It appears that the pay scale which was offered and thereafter paid by it till the resolution dated 27.3.2012 was at par with the pay scale paid to the Government employees as per the 5 th PRC. Therefore, thereafter, to pay any salary/pay scale lesser than what was offered at the time of inviting the applications would be changing the conditions of service, which is notNow, so far as the reliance placed upon Rule 282 and 283 of the Bihar Service Code by the Appellant Corporation is concerned, even on considering Rule 282 and 283 of the Bihar Service Code, it cannot be said that the person sent on deputation cannot be paid any more salary/emoluments than what was paid to the Government servant while working with theOn fair reading of Rule 283(c) and Rule 283(e), it can be seen that it is permissible for the foreign service to pay something more than what the employees were getting in the parent department. Therefore, the interpretation on behalf of the Corporation on reading Rule 283 that the employee sent on deputation to a foreign service has to be paid the same salary/pay scale which he was getting in the parent department, cannot be accepted. Therefore, reliance placed on Rule 282 and 283 of the Bihar Service Code while passing the resolution dated 27.3.2012 was absolutely either misplaced and/or on mis- interpretation and, therefore, the same is rightly set aside by the High Court. We are in complete agreement with the view taken by the Division Bench in quashing the resolution dated 27.3.2012.9. Now, so far as the impugned judgment and order passed by the High Court directing the Appellant Corporation to grant pay scale to the Respondents herein – original Writ Petitioners as per the 6 th PRC is concerned, it is required to be noted that, as such, the Appellant Corporation itself took a conscious decision in the year 2010 to grant the benefit of 6 th PRC to the employees working with the Corporation. However, on the advice of the Finance Department that the Corporation may grant the benefit of 6 th PRC to their permanent employees and not to the employees on deputation, the Corporation thereafter took a decision not to grant the benefit of the pay scale as per the 6 th PRC. As rightly held by the Division Bench of the High Court, the advice by the Finance Department was non-application of mind, inasmuch so far as the Corporation is concerned, there is not a single employee appointed by the Corporation on permanent basis and the entire staff is either on deputation or on contract basis from other Boards/organizations. Therefore, the Division Bench of the High Court has rightly directed the Appellant Corporation to grant the pay scale to the Respondents – original Writ Petitioners as per the 6 th PRC. However, at the same time, it is to be clarified that they will get the pay scale as per the 6 th PRC so long as they continue to work with the Appellant Corporation and as and when they are repatriated, in that case, they shall be governed by the pay scale paid to the employees in the parent Board/Organization.