Corporation of India Officers' Association Vs. Jute
Corporation of India Ltd. & Anr  INSC 185 (3 May 1990)
P.B. Sawant, P.B. Misra Rangnath
1990 SCR (2)1006 1990 SCC (3) 436 JT 1990 (2) 255 1990 SCALE (1)1
and Services: Public Sector Enterprises--Class I & H Officers--High Power
Pay Committee recommendations--implementation of.
High Power Pay Committee appointed under the direc- tions .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 scales and dearness allowance, submitted
its report on November 2, 1988. When the Central Government did not act
expeditiously on that report the petitioners filed writs for a direction to imple-
ment the recommendations.
of the writ petitions, the Court directed:
scales of pay and dearness allowance as recom- mended in the report would be 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
dearness allowance. [1009G]
employees appointed on or after January 1, 1989 would be governed by such pay-scales and allowances as
might be decided by the Government in its discretion. Those ap- pointed earlier
with IDA pattern would continue to be gov- erned in accordance with the terms
and conditions of their appointment. [1009H]
pay revision for those employees in respect of whom the recommendations were
being directed to be imple- mented would take place only as and when similar
changes were affected for the Central Government employees. These employees
would, however, continue to enjoy the option to switch over to the IDA pattern
of the scales of pay etc. on a voluntary basis. [10lOB] 1007
various recommendations made in the report would he implemented with effect
from the dates indicated. [1010C]
arrears arising on account of pay, DA and other allowances etc.. would he
adjustable against ad hoc payments made from time to time. [1011C]
JURISDICTION: Civil Miscellaneous Petition No. 10864 of 1989.
Writ Petition No. 13044 of 1984 Etc. Etc.
Article 32 of the Constitution of India).
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, Gulab
Chandra, Sarva Mitter, R. Venkataramani, C. Ramesh, Ms. Urmila Sirur, M.N. Krishnamani,
Sunder Rao, K.R. Nagara- ja, V.N. Ganpule, J.D. Jain and Chandran--Petitioner
in person for the appearing parties.
Judgment of the Court was delivered by SAWANT, J. In all these cases the relief
claimed is the implementation of the recommendations of the High Power Pay
Committee 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.
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 peti- tions 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 Government
for its employees, and (iii) there should be no discrimination between them and
those directly-employed by the Central Government and that they should get the
same scales of pay and 1008 allowances for the same types of jobs in accordance
with the principle of "equal pay for equal work".
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 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
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.
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, com- pensatory and other
allowances and such other incidental aspects relating to the employees 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 Government pattern of pay-scales and dearness allowance. The terms
of reference of the High Power Pay Committee were as follows:
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
examine the variety of allowances and benefits in kind that are presently
available to the above noted employ- ees in addition to pay and DA and suggest rationalisation,
simplification thereof with a view to promoting efficiency.
To examine matters relating to grant of interim relief to the employees of all
such public enterprises (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.
While making recommendations on the above points, the Committee would keep in
view other related factors 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 dis- posal of these
Committee submitted its recommendations by its Final Report of November 2, 1988. However, the Central Government
did not act on the said 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.
heard the parties on the proposals contained in the affidavit and found that
there was not much controversy over the proposals except in regard to the date
of the implemen- tation 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 1, 1989, since the Report was of 2nd November, 1988. We, however, direct as follows:
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 enter- prises are being
paid Central dearness allowance.
The employees appointed on or after January 1, 1989, will be governed by such
pay-scales and allowances as may be decided by the Government in its
discretion. Those appointed earlier 1010 with IDA pattern will continue to be
governed in accordance with the terms and conditions of their appointment.
The pay revision for those employees in respect of whom the recommendations are
hereby being directed to be implemented 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.
The various recommendations made in the Report will be implemented with effect
from the dates as follows. These dates are broadly in conformity with those
specified in the Report:
be implemented w.e .f.
Revised pay-scales and 1.1.1986 (Para
16.1) revised D .A. formula
First instalment of 1.6.1983 (Para 16.3)
Second instalment of 1.3.1985 (Para 16.3)
as per revised slabs 1.1.1989 (para 11.6 of Chapter 11 (From
1.1.1986to31.12.1988 CCA of the Report) will be paid at the existing rate at
national pay in the revised pay-scales(para 11.7 of the report)
House Rent Allowance Ceiling on payment of HRA with percentage rates as per out
production or rent receipt BPE's OM NO.1(3)/83
BPE to be revised from 1.12.1988.
dated 1.7.83, sub- The existing HRA structure to ject to overall ceiling be
reviewed by BPE and revised of Rs.1250, 1000, 680, norms and rates fixed from a
340 and 310 for Delhi/ prospective date (Ref. Para Bombay, A,B1 and B2,C 11.15)
and unclassified cities respectively.
Medical facilities in From prospective date to be terms of para 11.21 of
decided by the Management of the Report the PSBs
Leave Travel Concession -do-
Other Allowances and per- The quantum of benefits to be quisites as per recommen-
decided by the Management of dations contained in Cha- PSEs should be given
effect pters 12 & 13 of the to prospectively in terms Report of para III. 7
part III of the Report (v) The arrears arising on account of pay, DA and other
allowances etc., would be adjustable against ad hoe payments made from time to
This judgment will govern all the petitions. The petitions, transferred cases
and all interlocutory applica- tions, civil miscellaneous petitions and
contempt petition are disposed of accordingly with no costs.
Petitions disposed of.