LexPUNJAB STATE CO-OPERATIVE MILK PRODUCERS FEDERATION LTD. & ANR. versus BALBIR KUMAR WALIA & ORS.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
A B C D E F G H 395 PUNJAB STATE CO-OPERATIVE MILK PRODUCERS FEDERATION LTD. & ANR. v. BALBIR KUMAR WALIA & ORS. (Civil Appeal No. 7427 of 2011) JULY 09, 2021 [SANJAY KISHAN KAUL AND HEMANT GUPTA, JJ.] Punjab State Co-operative Milk Producers Federation Services (Common Cadre) Rules, 1980: Revised pay scale – Entitlement to, from 1.1.1986 – Writ petitions by the respondents- employees seeking entitlement to pay scale equivalent to their counterparts in the State of Punjab from 1.1.1986, though the revised pay scale was allowed by the Punjab State Co-operative Milk Producers Federation Ltd w.e.f. 1.1.1994 – Federation’s case that they were suffering with acute financial stringency – High Court allowed the writ petitions holding that the financial stringency was no longer an excuse to not revise the pay scales and thus held that the date of implementation to grant revised pay scales as 1.1.1994 was absolutely unfair – On appeal, held: Objective of the Federation was not to give employment but to increase milk production in the State – Employees are facilitators of the employer to achieve such objective and thus demanding enhanced wages without considering the objective and financial condition of the employer would not be ideal – Employer and the employees have to work together to achieve the objective of the organization-white revolution – Decision of not to grant revised pay scale from 1.1.1986 was taken keeping in view the financial condition of the Federation – Process to arrive at such decision can be said to be flawed only on the permissible grounds of illegality, irrationality and procedural impropriety – Neither the decision-making process, nor the decision itself suffers from any such vice - Income generated by the Federation is not to be expanded only on payment of salary but is also required for upgradation of technology, renovation and expansion of plants etc - Order of the High Courtis unjustified and in excess of the power of judicial review conferred on the High Court - Orders passed by the High Court is set aside. [2021] 6 S.C.R. 395 395 A B C D E F G H 396 SUPREME COURT REPORTS [2021] 6 S.C.R. Pay scale – Entitlement to – Employees seeking pay scale equivalent to their counterparts in the State of Punjab from 1.1.1986, though revised pay scale was allowed by the Federation w.e.f. 1.1.1994 – High Court holding that employees were entitled to pay scale – Held: Not justified – Principle of equal pay for equal work not applicable to them in as much as Grade I is a higher post having higher duties and responsibilities than Grade II – Milk Procurement Assistants Grade-I is a promotion alavenue for Milk Procurement Assistants Grade-II – Educational qualifications and the responsibilities of the two posts are quite different. Allowing the appeals, the Court HELD: 1.1 In the instant case, it was contended that the Federation-Punjab State Co-operative Milk Producers Federation Ltd is a statutory Co-operative Society which is having its Common Cadre Rules. Any amendment in the Common Cadre Rules is to be approved by the Registrar (Co-operative Societies). The State Government communicated on 1.3.1990 and 9.7.1993 that the pay scale as applicable to the Punjab Government employees is not to be adopted by the Public Sector Undertakings without taking into consideration the financial health of the other statutory Boards and Corporations. The Federation thus took a conscious and concerted decision to not follow the report of the Anomaly Committee of the State Government to grant revised pay scale from 1.1.1986 in view of precarious financial condition. Moreover, financial assistance had to be availed by the Federation from the State Government as well as from the National Dairy Development Board. A Committee was constituted to examine the grievance of the employees for grant of revised pay scale. The Committee also recommended that pay scale be given w.e.f. 1.1.1994 on account of financial stringency being faced by the Federation. The Board of Directors approved the recommendation of the Committee, which was accepted by the Registrar (Co- operative Societies). Therefore, the decision of not to grant revised pay scale from 1.1.1986 was taken keeping in view the financial condition of the Federation. [Para 41, 42][423-C-G] 1.2 Judicial review of administrative action is permissible on grounds of illegality, irrationality and procedural impropriety. A B C D E F G H 397 An administrative decision is considered as flawe
Excerpt shown. Read the full judgment & AI analysis in Lexace.