N. T. C. (Ida Pattern) Employees Association v. Union Of India
1999-05-07
S.B.MAJMUDAR, V.N.KHARE
body1999
DigiLaw.ai
ORDER 1. Having heard learned counsel for the parties, we deem it fit to pass further interim relief order as under. 2. In this group of matters, the employees working in the subsidiaries of National Textile Corporation (for short NTC) have made the grievance about not having been given the pay scales as per IDA pattern, though their colleagues who are not covered by the said pattern and are governed by the Central DA pattern have been given such pay scales and revision from time to time. They relied upon Government Memo dated 19.7.1995 in support their case. Their writ petition in the High Court was dismissed on the ground that the matter is dealt with by this Court in its judgment in Jute Corporation of India Officers Association vs. Jute Corporation of India Ltd. and another etc. etc., [1991 (61) FLR211, JT 1990 (2)SC 255, 1989 (2) SCALE 476, (1990) 3 SCC436 , [1990] 2 SCR 1006. Pending this Special Leave Petition at admission stage, after hearing concerned parties by an order dated 28-1-1998, it was observed that as the concerned subsidiaries of National Textile Corporation where the employees of the petitioner union are working are sick and all of them were before the Board for Industrial and Financial Reconstruction (for short BIFR) functioning under the provisions of Sick Industrial Companies (Special Provisions) Act. 1985, (hereinafter referred to as the SICA Act), the employees concerned may get a clearance from the BIFR. as per Clause 13 of the Government Office Memorandum dated 19.7.1995 annexed at page 36 of the SLP. which requires such clearance before further orders can be passed in their favour. Accordingly, the concerned employees approached the BIFR which passed the order dated 21/28.4.1998 giving no objection for releasing the revised pay scales to the concerned employees of NTC which are sick units. Thereafter, this group of matters stood adjourned from time to time awaiting response from concerned respondents. Subsequently, by a further interim order dated 7.5.
Accordingly, the concerned employees approached the BIFR which passed the order dated 21/28.4.1998 giving no objection for releasing the revised pay scales to the concerned employees of NTC which are sick units. Thereafter, this group of matters stood adjourned from time to time awaiting response from concerned respondents. Subsequently, by a further interim order dated 7.5. 1999 after hearing learned counsel for the parties, it was directed that till these matters are finally decided interest of justice required that the officers/employees of IDA pattern working in NTC and its subsidiaries in whose cases no objection was received from the BIFR by order dated 21/28.4.1998 which would cover the employees governed by IDA pattern working in the NTC and its subsidiaries should be given, without prejudice to the rights and contentions of all the contesting parties in these proceedings, and purely on ad hoc basis the benefits under a.M. dated 19.7.1995 at least from 1.1.1999 and all arrears on that basis will have to be worked out for the concerned employees. It is not in dispute between the parties that the said order has been complied with by the respondent-authorities and the concerned employees are receiving revised pay scales accordingly and are getting monthly emoluments regularly. Thereafter, by a further order dated 24.8.1999 it was noted after hearing learned senior counsel for Union of India that the NTC sick mills which were before the BIFR were considered by it for the purpose of recommending whether they are viable units required to be put on rails or they were required to be wound up looking to their financial position and availability of appropriate finance for reviving them or otherwise. In the said order it was felt necessary to have a clear picture about the proceedings pending before the BIFR concerning the mills in question before any appropriate further order could be passed in this group of matters. Notice was, therefore, directed to be issued to BIFR. Pursuant to the said notice. BIFR has appeared through its senior counsel. Mr. M.N. Rao. An affidavit has been filed on behalf of BIFR in due compliance with the aforesaid order dated 24.8.1999. It has been brought to our notice in the said affidavit that in all eight cases pertained to NTC sick units which were processed by BIFR.
Pursuant to the said notice. BIFR has appeared through its senior counsel. Mr. M.N. Rao. An affidavit has been filed on behalf of BIFR in due compliance with the aforesaid order dated 24.8.1999. It has been brought to our notice in the said affidavit that in all eight cases pertained to NTC sick units which were processed by BIFR. In paragraph 10 of its affidavit at page 129 of the paper book the said eight units have been listed as under: i) Case No. 534/92-M/s. NTC (APKKM) Ltd. 18.01.1996 ii) Case No. 536/92-M/s. NTC (MN) Ltd. 29.11.1995 iii) Case No. 505/93-M/s. NTC (SM) Ltd. 30.11.1995 iv) Case No. 501/94-M/s. NTC (DPR) Ltd. 30.11.1995 v) Case No. 532/92-M/s. NTC (0) Ltd. 06.02.1996 vi) Case No. 501/96-M/s. NTC (MP) Ltd. 06.02.1996 vii) Case No, 503/92-M/s. NTC (WBA&O) Ltd. 06.02.1996 viii) Case No. 504/93-M/s. NTC (UP) Ltd. 06.02.1996 3. In paragraph II of the affidavit, it has been stated that out of these eight units whose cases were considered four units were found viable for which draft rehabilitation schemes were circulated and published as per Section 19(2) of the SICA Act. They are as under:-- i) Case No. 534/92-M/s. NTC (APKKM) Ltd. 18.01.1996 ii) Case No. 536/92-M/s. NTC (MN) Ltd. 29.11.1995 iii) Case No. 505/93-M/s. NTC (SM) Ltd. 30.11.l995 iv) Case No. 50l/94-M/s. NTC (DPR) Ltd. 30.11.1995 4. While in paragraph 12 of the affidavit it is submitted that in four cases show cause notices for winding up have been issued on date mentioned against each. They are as under: v) Case No. 535/92-M/s. NTC (G) Ltd. 06.02.1996 vi) Case No. 501/95-M/s. NTC (MP) Ltd. 06.02.1996 vii) Case No, 503/92-M/s. NTC (WBA&O) Ltd. 05.02.1996 viii) Case No. 504/93-M/s. NTC (UP) Ltd. 06.02.1996 5. When these matters were further heard on 30.11.1999, we found that pursuant to our earlier order dated 7.5.1999, all the employees of the aforesaid eight units have been receiving the benefit of revised pay scales as per O.M. dated 19.7.1995 at least from 1.1.l999. However, out of these eight units, four sick units, as seen from paragraph 12 of the affidavit of BIFR are not found viable and are proposed to be wound up after following the procedure laid down under the Act. Till appropriate final orders are passed in this connection under the SICA Act it would be too premature to pass final orders in the present proceedings.
Till appropriate final orders are passed in this connection under the SICA Act it would be too premature to pass final orders in the present proceedings. It is to be noted that no final orders are passed in connection with the employees of all these four units. Need to defer passing of final orders also arises especially in view of the counter filed on behalf of the respondent --Union of India by Shri T. Nandakumar, Joint Secretary, Ministry of Textiles, as it is that Ministry which is concerned with all the eight NTC mills units with which we are dealing in the present group of matters. As per the same, it appears that many loose ends are still to be tied both at the end of Union of India in the concerned Ministries as well as by the BIFR after obtaining further information in the matters from Union of India. In our view, therefore, it will be proper to adjourn these proceedings initially for a period of six months from today to enable the parties concerned to place before us a batter picture regarding what happens in the meantime in connection with all these eight units of the NTC, whether they are ultimately found to be viable or are required to be wound up or that they may get better financial status after some of its assets like open lands are permitted to be sold and encashed by competent authorities. All these future events can be better visualised after passage of reasonable time within which all concerned can put up their heads together and come to appropriate decisions. 6. In the mean time, it has to be observed that whatever benefits are already made available to the concerned employees of all these eight units pursuant to our earlier order dated 7.5.1999 naturally will be continued to be made available to them without prejudice to the rights and contentions of all the parties as already mentioned by us. 7. However, one further aspect of the matter is required to be noted at this Stage. It was brought to our notice by learned senior counsel, Mr.
7. However, one further aspect of the matter is required to be noted at this Stage. It was brought to our notice by learned senior counsel, Mr. Ganguli for the intervenor that an Office Memorandum dated 25.6.1999 is issued by the appropriate authorities of the Union of India ordering to grant further upward revision to pay scales and dearness allowance to the concerned employees, subject, of course, to the compliance of Clause 6 being almost similar to Clause 13 of the earlier O.M. dated 19.7.1995. Accordingly, further hike in the pay scales would be available to the concerned employees governed by the I.D.A. pattern from 1.1.1997. ft was, therefore, prayed that further interim relief be granted to the employees in the light of the latter O.M. dated 25.6.1999. 8. Having heard learned senior counsel for the petitioners in this connection and also learned senior counsel, Mr. Goswami, for Union of India, we deem it fit without prejudice to the rights and contentions of all the parties to grant further interim relief at least to the employees governed by I.D.A. patter and who are working in the mills governed by the four units of N.T.C. mentioned in paragraph II of the counter affidavit of BIFR as aforesaid and which are found viatle by the BIFR for being revived under the draft rehabilitation schemes. It is also an admitted position on record that despite the rehabilitation schemes were circulated under Section 19(2) of the SICA Act, no objection or suggestion have been received by the BIFR up till now and the Union Government has requested the BIFR to keep back the consideration for further time. As laid down by sub-section (3) of Section 19 of the SICA Act prima facie it may appear that these four units can be treated to be deemed viable units though we express no final opinion thereon. For the purpose of granting further interim relief to the employees of the aforesaid four units of NTC in the light of the latter Office Memorandum dated 25.6.1999, brought on record as per I. A. 12.
For the purpose of granting further interim relief to the employees of the aforesaid four units of NTC in the light of the latter Office Memorandum dated 25.6.1999, brought on record as per I. A. 12. we deem it fit to direct in continuation of our earlier order dated 7.5.] 999 that in addition to the benefits available to them under the aforesaid order a further relief be granted by directing the respondent-authorities in the light of Office Memorandum dated 25.6.1999 to give to the employees governed by I.D.A. pattern working in the aforesaid four units of NTC as mentioned in paragraph II of the counter filed on behalf of BIFR namely, employees of M/s. NTC (APKKM) Ltd., M/s. NTC (MN) Ltd., M/s. NTC (SM) Ltd., and M/s. NTC (DPR) Ltd. working at different places and controlled and governed by the aforesaid NTC units, further escalation of pay scales and dearness allowances pursuant to the a.M. dated 25.6.1999 with effect from 1.7.1999 till further orders. The respondent-authorities shall work out additional amounts payable to these employees pursuant to the present order and make them available to the concerned employees within a period of eight weeks from today. They will also be entitled to receive the revised pay scales as per a.M. dated 25.6.1999 accordingly from month to month till further orders. It is made clear that the employees working in the four units of the NTC mentioned in paragraph 12 of the counter of B1FR, namely, M/s. NTC (G) Ltd" M/s. NTC (MP) Ltd" M/s. NTC (WBA &a) Ltd. and M/s. (UP) Ltd. will not at present, be entitled to further hike in wages pursuant to the O.M. dated 25.6.1999 but will continue to receive earlier pay scales and benefits pursuant to our order dated 7.5.1999. It is also made clear that none of the employees of any of these eight units at present will be entitled to any arrears pursuant to the concerned O.Ms. for the periods prior to 1.1.1999 or 1.7.1999, as the case may be, till further orders. It is also made clear that whatever benefits of revised pay scales are made available by these interim orders including the present one will abide by the final orders in this group of matters and accordingly appropriate adjustment, if any will be made from the future pays n retirement benefits of the employees concerned.
It is also made clear that whatever benefits of revised pay scales are made available by these interim orders including the present one will abide by the final orders in this group of matters and accordingly appropriate adjustment, if any will be made from the future pays n retirement benefits of the employees concerned. That will have to be worked out in the light of the final orders that may be passed in these proceedings. 9. As the viability of the units concerned and the efficacy of the proposed rehabilitation scheme will also depend upon the sale of some of the assets of these units especially the open lands occupied by them and which may not be strictly necessary for running of these concerns, and as the approval and clearance by the concerned State Governments where these units are situate may or may not be necessary, in order to get a better picture in this connection in the light of which final orders can be passed in these proceedings, we deem it fit to direct that notices be issued to the following State Government through their Chief Secretaries returnable on the next date of hearing which is fixed on 9.5.2000, for getting their response in this connection. 10. List of State Governments/Union territories: 1. 2. 3. 4. 5. 6. 7. 8. 9. NCT of Delhi. State of Punjab. State of Rajasthan. State of Gujarat State of Andhra Pradesh State of Karnataka. State of Kerala. State of Maharashtra. State of West Bengal. 10. II. 12. 13. 14. 15. 16. State of Bihar. State of Orissa. State of Uttar Pradesh. State of Assam. State of Madhya Pradesh. State of Tamil Nadu. Union Territory of Pondicherry. 11. We make it clear that the present order will not come in the way of the concerned authorities if they think it fit in the interest of administration to transfer the employees concerned from any of the units to any other units. It is also made clear that the present order is in continuation of the earlier order and whatever directions are issued and conditions are imposed against the concerned respondents will ipso facto be applicable to this order also.