# JUTE CORPORATION OF INDIA OFFICERS' ASSOCIATION ETC v. JUTE CORPORATION OF INDIA LTD. AND ANR. ETC

- **Citation:** [1990] 2 S.C.R. 1006
- **Court:** Supreme Court of India
- **Decided:** 1990-05-03
- **Case number:** Civil Miscellaneous Petition No. 10864 of 1989
- **Bench:** Rangana1H Misra, P.B. Sawant, K. Ramaswamy
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/jute-corporation-of-india-officers-association-etc-v-jute-corporation-of-india-10710
- **Pages:** 6

## Headnote

,..
Labour and Services: Public Sector Enterprises-Class I & II
Officers-High Power Pay Committee recommendations-implemenC tation of
The High Power Pay Committee appointed under the directions
of this Court In respect of the emoluments to be paid to the officers
belonging to Class I and Class II Service employed in different public }
sector enterprises governed by the Central Government pattern of pay
D scales and dearness aUowance, submitted its report on November 2,
1988. When the Central Government did not act expeditiously on that
report the petitioners rited writs for a direction to Implement the
recommendations.
E
Disposing of the writ petilions, the Court directed:
'
1. The scales of pay and dearness aUowance as recommended in ~
the report would he extended to those employees who' have been
appointed with specific terms and conditions fOr grant of Central D.A.
and those who were already being paid Central dearnes'i allowance. [1009G] -
F
2. The employees appointed on or after January 1, 1989 would be
governed by such pay-scales and aUowances as might be decided by the
-W
Government In its discretion. Those appointed earlier with IDA pattern
) •
would continue to be governed in accordance with the terms and condi·
tions of their appointment. !too9Hi
G
3. The pay re.vision for those employees in respect of whom the
H
recommendations were being directed to be implemented would take
place only as and when similar changes were affected for the Central
Government employees. These emp:oyees would, however, continue to
enjoy the option to switch over to the IDA pattern of the scales of pay --J...
etc. on a voluntary basis. hot OBJ
·
1006
J.C.I. OFFICERS' ASSCN. v. JUTE CORPN. (SAWANT, J.]
1007
4. The various recommendations made In the report wonld he
implemented with effect from the dates indicated. [1010C]
5. The arrears arising on account of pay, DA and other
allowances etc .• would be adjustable against ad hoc payments made
from time to time. [lOUC]
·
ORIGINAL JURISDICTION: Civil Miscellaneous Petition
No. 10864 of 1989.
IN
Writ Petition No. 13044 of 1984 Etc. Etc.
.{
(Under Article 32 of the Constitution of India).
A
B
c
Kapil Sibal, Additional Solicitor General, Dr. L.M. Singhvi,
Gobinda Mukhoty, K.K. Venugopal, Ms.·Mridula Ray, C.V. Subba
Rao, P.R. Seetharaman, Ranjit Kumar, Asru Bose, Guiab Chandra,
D
Sarva Mitter, R. Venkataramani, C. &.mesh, Ms. Urmila Sirur, M.N.
Krishnamani, Sunder Rao, K.R. Nagaraja, V.N. Ganpule, J.D. Jain
(
and Chandran-Petitioner in person for the appearing parties.

## Text

A
B
JUTE CORPORATION OF INDIA OFFICERS'
ASSOCIATION ETC.
v.
JUTE CORPORATION OF INDIA LTD. AND ANR. ETC.
MAY 3, 1990
[RANGANA1H MISRA, P.B. SAWANT AND
K. RAMASWAMY, JJ.]
,..
Labour and Services: Public Sector Enterprises-Class I & II
Officers-High Power Pay Committee recommendations-implemenC tation of
The High Power Pay Committee appointed under the directions
of this Court In respect of the emoluments to be paid to the officers
belonging to Class I and Class II Service employed in different public }
sector enterprises governed by the Central Government pattern of pay
D scales and dearness aUowance, submitted its report on November 2,
1988. When the Central Government did not act expeditiously on that
report the petitioners rited writs for a direction to Implement the
recommendations.
E
Disposing of the writ petilions, the Court directed:
'
1. The scales of pay and dearness aUowance as recommended in ~
the report would he extended to those employees who' have been
appointed with specific terms and conditions fOr grant of Central D.A.
and those who were already being paid Central dearnes'i allowance. [1009G] -
F
2. The employees appointed on or after January 1, 1989 would be
governed by such pay-scales and aUowances as might be decided by the
-W
Government In its discretion. Those appointed earlier with IDA pattern
) •
would continue to be governed in accordance with the terms and condi·
tions of their appointment. !too9Hi
G
3. The pay re.vision for those employees in respect of whom the
H
recommendations were being directed to be implemented would take
place only as and when similar changes were affected for the Central
Government employees. These emp:oyees would, however, continue to
enjoy the option to switch over to the IDA pattern of the scales of pay --J...
etc. on a voluntary basis. hot OBJ
·
1006
J.C.I. OFFICERS' ASSCN. v. JUTE CORPN. (SAWANT, J.]
1007
4. The various recommendations made In the report wonld he
implemented with effect from the dates indicated. [1010C]
5. The arrears arising on account of pay, DA and other
allowances etc .• would be adjustable against ad hoc payments made
from time to time. [lOUC]
·
ORIGINAL JURISDICTION: Civil Miscellaneous Petition
No. 10864 of 1989.
IN
Writ Petition No. 13044 of 1984 Etc. Etc.
.{
(Under Article 32 of the Constitution of India).
A
B
c
Kapil Sibal, Additional Solicitor General, Dr. L.M. Singhvi,
Gobinda Mukhoty, K.K. Venugopal, Ms.·Mridula Ray, C.V. Subba
Rao, P.R. Seetharaman, Ranjit Kumar, Asru Bose, Guiab Chandra,
D
Sarva Mitter, R. Venkataramani, C. &.mesh, Ms. Urmila Sirur, M.N.
Krishnamani, Sunder Rao, K.R. Nagaraja, V.N. Ganpule, J.D. Jain
(
and Chandran-Petitioner in person for the appearing parties.
The Judgment of the Court was delivered by
SAW ANT, J. In all these cases the relief claimed is the
implementation of the recommendations of the High Power Pay Com·
mittee in respect of the emoluments to be paid to the officers belong·
ing to Class-I and Class-II service employed in different public sector
enterprises.
2. Earlier, these employees had approached various High
Courts and this Court against the decision of the Central Government
to switch them over to the Industrial Dearness Allowance pattern and
the incidental steps taken to enforce the said decision. The main
reliefs claimed in those petitions were that (i) the employees should be
permitted to continue to draw the salary in the scales of pay applicable
to them along with the Central Dearness Allowance, (ii) they should
/-. be granted all the benefits of pay revision and revision of other allowances which may be announced from time to time by the Central
Governmerif for its employees, and (iii) there should be. no discrimination between them and those directly· employed by the Central
Q()_vc::ml?ent and that they should get the same scales of pay and'
E
F
G
H
1008
SUPREME COURT REPORTS
[1990] 2 S.C.R.
\
A
allowances for the same types of jobs in accordance with the principle
of "equal pay for equal work".
)L--
During the course of the hearing, on August 24, 1984, this Court
ordered the payment of three additional dearness allowance instalments from August 1, 1983, October 1, 1983 and November 1, 1983 to
B
those employees who were on Central pattern of pay-scales and dearness allowance subject to an individual undertaking by each employee ~
that in case such payment resulted in the employee receiving an
excess, such excess would be recovered from him from future payments, if the petitions failed.
c
D
On February 19, 1986, the Court further ordered that all
employees of public sector enterprises following the Central dearness
allowance pattern and drawing a basic pay of Rs.1000 or less, will be
entitled to interim reliefs on the same basis and scale as the Government of India employees w.e.f. January 1, 1986 .. This was also allowed
subject to similar undertaking given by each employee.
When the matters were posted for hearing on March 14, 1986,
the Central Government expressed its willingness to refer to High
Power Pay Committee the question regarding the revision of payscales, additional dearness allowance, compensatory and other allo-
)
wances and such other incidental aspects relating to the employees
E
governed by the Central pattern of pay-scales and dearness allowance.
Accordingly, the Court directed the Central Government to constitute
a High Power Pay Committee to go into various aspects relating to
pay-scales and other incidental matters including interim relief to the
said employees, viz., the employees governed by the Central Gove~n
ment pattern of pay-scales and dearness allowance. The terms of refeF
rence of the High Power Pay Committee were as follows:
G
H
"I. To examine the present structure of emoluments and
conditions of service taking into account the total packet of
benefits in cash and kind, available to the workers, clerical
staff, supervisors and officers,. below the Board level
following the Central DA pattern and to suggest changes
which may be desirable and feasible.
II. To examine the variety of allowances and benefits in
kind that are presently available to the above noted
employees in addition to pay and DA and suggest rationalisation, simplification thereof with a. view to promoting
efficiency.
~
)
-
I
J.C.!. OFFICERS' ASSCN. v. JUTE CORPN. [SAWANT, J.]
1009
III. To examine matters relating to grant of interim relief
to tl\e employees of all such public entrprises (belonging to
the Government of India and following the Central DA
pattern) who are drawing basic pay above Rs.1000 per
month and grant necessary relief to them, if called for.
IV. While making recommendations on the above points,
the Committee would keep in view other relatecnactors
such as scales of pay, DA and allowances prevailing in
other public sector undertakings on Industrial DA formula,
economic conditions in the country, resources available at
the disposal of these public enterprises".
3. The Committee submitted its recommendations by its Final
~ Report of November 2, 1988. However, the Central Government did
· not act on the s.iid report expeditiously and hence the present writ
petitions were filed on various dates praying for relief in the form of a
direction to the Central Government to implement the recommendations made in the Report. The Government took several adjournments
to disclose its stand on the Report and has now ultimately come out
with proposals which are incorporated in the additional affidavit dated
17th April, 1990, filed on behalf of the Union of India by Shri Suresh
. Kumar, Additional Secretary in the Ministry of Industry, Bureau of
( Public Enterprises. The affidavit is taken on record.
We heard the parties on the proposals contained in the affidavit
A
B
c
D
E
and found that there was not much controversy over the proposals
except in regard to the date of the implementation of the House Rent
Allowance. The employees insisted that the said allowance should be
given from 1.1.1986 whereas the Government contended that it can
properly be implemented only w.e.f. January J, 1989, since the Report · F
was of 2nd November, 1988. We, however, direct as follows:
(i) The scales of pay and dearness allowance as recommended in
the Report will be extended to those employees who have been
appointed with specific terms and conditions for grant of Central
D.A. This will be equally applicable to the employees who by
rules laid down by the public sector enterprises are being paid
Central dearness allowance.
(ii) The employees appointed on or after January 1, 1989, will be
governed by such pay-scales and allowances as may be decided
•
G
by the Government in its discretion. Those appointed earlier
H
1010
SUPREME COURT REPORTS
119901 2 S.C.R.
A
with IDA pattern will continue to be governed in accordance \ .
with the terms and conditions of their appointment.
L_.
(iii) The pay revision for those employees in respect of whom
the recommendations are hereby being directed to be impleB
mented hereafter, will take place only as and when similar
changes are effected for the Central Government employees.
These employees will, however, continue to enjoy the option to ...
switch over to the IDA pattern of the scales of pay etc. on a
voluntary basis.
(iv) The various recommendations made in the Report will be ~-
c
implemented with effect from the dates as follows. These dates
are broadly in conformity with those specified in the Report:
~
Item
To be implemented w.e.f.
D
1.
Revised pay-scales and
1.1.1986 (Para 16.1)
revised D.A. formula
2.
First instalment of Interim 1.6.1983 (Para 16.3)
- .
Relief
E - J.
Second instalment of
1.3.1985 (Para 16.3)
Interim Relief
4.
CCA as per revised slabs
1.1.1989
-
(para 11.6 of Chapter 11
(From 1.1.1986 to 31.12.1988 CCA
F
of the Report)
will be paid at the existing rate at
.. -
notional pay in the revised pay-scales
I
(para 11.7 of the Report)
)
5.
House Rent Allowance
Ceiling on payment of HRA without
Percentage rates as per
_ proquction of rent receipt to be
•
SPE's OM NO. 1(3)/83revised from 1.12.1988. The existing
G
BPE (WC) dated 1.7.83,
HRA structure to be reviewed by
subject to overall ceiling
BPE and revised norms and rates
of Rs. 1250, 1000, 680,
fixed from a prospective date
·"'-
340 and 310 fpr Delhi/
(Ref. Para 11.15)
Bombay, A, B 1 and B2, C
H
iind unclassified cities
respectivey
-
J.C.!. OFFICERS' ASSCN. v. JUTE CORPN. [SAWANT. J.J
1011
Medical facilities in
terms of para 11.21 of
the Report
From prospective date to be
decided'by the Management of
the PSBs
'
A
7.
Leave Travel Concession -do8.
Other Allowances and per-Tlle quantum of benefits to be
quisites as per recommen- decided by the Management of PSEs
dations contained in Chap- should be given effect to prosters 12 & 13 of the Report pectively in terms of para
!IL 7 Part III of the Report
B
(v) The arrears . .arising on account of pay, DA and other alloc
wances etc., would be adjustable against ad hoc.payments made
.(
from time to time.
(
t
4. This judgment will govern all the petitions. The petitions, transferred cases and all iinterlocutory applications, civil
miscellaneous petitions and contempt petition are disposed of
accordingly with no costs.
P.S.S.
Petitions disposed of.
D