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1989 DIGILAW 592 (SC)

Officers of Cement Corporation of India v. Union of India

1989-10-20

K.RAMASWAMY, P.B.SAWANT, RANGANATH MISRA

body1989
ORDER : 1. On September 15, 1989 this Court made an order in regard to payment on account to the employees of public sector undertakings, a part of their claim as recommended by the High Power Committee. The order indicated "we have been told that two interim payments were made by the High Power Committee when the matter was pending before it-the first one was of a sum and the second was a 10% of the salary. We direct that the payment shall be made of 25%, which is represented to involve around Rs. 25 crores to the exchequer. The manner in which the 10% as the second instalment has been paid shall form the guideline for payment of this 25%. The payment of 25% shall be paid along with the pay for the month of September, 1989." 2. Several petitions have now been filed alleging that the order has not been complied with in terms and, therefore, there has been contempt; necessity for clarification and directions, Mr. Ramaswamy, ASG, who had then appeared before us has stated to the Court today that his indication of 25% being Rs. 25 crores as stated in the order was a mistake, he having proceeded on the footing that the 10% payment amounted to about Rs. 10 crores. He has further clarified that he was under the impression that Rs. 25 crores was intended to be the annual expenditure on the said basis. We have no reason not to accept that his statement was under a mistake but one thing is certain that the Court intended to release Rs. 25 crores against the dues of the public sector employees. Charts have been placed before us to indicate what exactly the dues of the public sector employees would be in the event of the recommendations of the High Power Committee being accepted. It is stated that if the revised pay-scale becomes effective from January 1, 1986, by now three increments would have been earned and what has been paid until now is near about that due. We do not propose at this stage to work out the arithmetic involved in the matter as these cases have been adjourned to 12 December, 1989 for final hearing, and what was ordered is only a payment on account. 3. We do not propose at this stage to work out the arithmetic involved in the matter as these cases have been adjourned to 12 December, 1989 for final hearing, and what was ordered is only a payment on account. 3. We accordingly direct by way of modification to the extent as is necessary of our earlier order that within the limit of Rs. 25 crores as indicated in that order, and on account and against the claims of the public sector undertakings employees payment of 12% of the annual basis salary and an amount not exceeding 1242 crores shall be made along with salary of October, 1989, and a similar payment shall he made along with salary for the month of November 1989. The benefit of these payments shall be confined to those who had received the 10% payment as ordered by the High Power Committee. No further payment would be made after these two payments have been disbursed unless the Court makes any direction in December, 1989. The amount which may have already been disbursed in terms of order dated 15.9.89 shall be deducted out of rupees 25 crores. 4 We have perused the affidavits of the respondents, but it is not necessary to consider them at this stage in view of the fact that the claims of the public sector employees is more than what is being disbursed and what is being given now is on account and open to adjustment on the basis of the final directions. 5. We have not thought it necessary to consider whether contempt has been committed as we are now directing the two payments to he made in the manner indicated above but we hope and trust that full compliance of these directions shall be made in the true spirit giving no cause to anyone to take the view that the directions of this Court have been violated.