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2013 DIGILAW 682 (DEL)

Subrat Basak v. Rashtriya Pariyojna Nirman Nigam Ltd.

2013-04-08

VALMIKI J.MEHTA

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JUDGMENT : Valmiki J. Mehta, J. 1. This writ petition is filed by four petitioners who were employees of the respondent. The respondent is today called National Projects Construction Corporation Limited (NPCC), and earlier for some point of time the respondent was called Rashtriya Pariyojna Nirman Nigam Limited, the description given to the respondent in the writ petition. The relief claimed in the writ petition is by the four petitioners, who were sent for work by the respondent to Iraq, and the petitioners claim for the period to which they were posted in Iraq (1986 to 1991), since it was directed by the respondent that the enhanced salaries would be paid in terms of the IVth Pay Commission Report, the enhanced salaries must be paid to the petitioners in Iraqi Dinars. Though there is no specific prayer for claiming Iraqi Dinars, the case argued by the petitioner No.1 in person and also on behalf of all the petitioners, seeks the release of entire arrears of payment in Iraqi Dinars along with interest. 2. It could not be disputed on behalf of the respondent that in terms of the office orders dated 24.4.1991 (qua petitioner No.1), 20.7.1990 (qua petitioner No.2), 16.8.1990 (qua petitioner No.3) and 20.12.1990 (qua petitioner No.4) these four petitioners will be entitled to revision of pay scales w.e.f the date as stated in these orders, i.e 1.1.1986. 3. Learned counsel appearing for the respondent could not dispute that the petitioner had to be paid the revised pay in terms of the aforesaid orders dated 24.4.1991, 20.7.1990, 16.8.1990 and 20.12.1990, however, it is urged that the petitioners cannot claim that the arrears should be paid in Iraqi Dinars. Counsel appearing for the respondent refers to the contracts and relevant rules governing persons such as the petitioners who were posted in Iraq, and which contracts and rules do not provide for any entitlement of the employees such as the petitioners to receive their pay in foreign currency, whether in Iraqi Dinars or US Dollars. Counsel appearing for the respondent refers to the contracts and relevant rules governing persons such as the petitioners who were posted in Iraq, and which contracts and rules do not provide for any entitlement of the employees such as the petitioners to receive their pay in foreign currency, whether in Iraqi Dinars or US Dollars. It is argued that merely because for the sake of convenience respondent made payment of salaries in part to these petitioners in Iraqi Dinars during the period they were posted in Iraq, and which was done to take care of their expenses in Iraq, cannot give legal entitlement of the payment of salary in Iraqi Dinars inasmuch as such a right can only exist in favour of the petitioners either if there is a contract to that effect or the rules of the respondent or as per circulars which could have been issued by the respondent, and none of the three positions of a contract or existence of rules or existence of circulars for payments of Iraqi Dinars to the petitioners exist. 4. A reference to the record shows that the petitioners could not point out that as to how they were entitled to payment in foreign currency of Iraqi Dinars or US Dollars. The only document relied upon by the petitioners is the letter dated 6.11.1982 of the respondent which refers to the conversion rate for repatriation of salary/wages of persons such as the petitioners to India, however, this letter cannot be read as a policy decision entitling payments of salary only in Iraqi Dinars. For the sake of convenience, this letter dated 6.11.1982 is reproduced as hereunder: “Ref. No.: 770518/1199 Dated : 6.11.1982 Shri S.K. Relan, Director (Finance), N.P.C.C. LIMITED, 30-31 – Raja House, Nehru Place. NEW DELHI. 110019 INDIA. Sub : Rate of Exchange for Iraqi Dinar. The Iraqi Dinar had a fixed rate of exchange for U.S.dollar viz US$ 3.377778-1 ID. The rate has now been revised to U.S.$ 3.208889. For purpose of repatriation of salary/wages we are continuing to follow the previous rate of exchange viz. U.S. $3.377778-1 ID as is being done by M/S E.P.I.. It may be mentioned that the above rate is also stipulated in our Agreements for Lot-4 and ARPS Units. The above is submitted for your kind information. Yours faithfully, (Mahesh Chandra) Manager (Finance)” 5. U.S. $3.377778-1 ID as is being done by M/S E.P.I.. It may be mentioned that the above rate is also stipulated in our Agreements for Lot-4 and ARPS Units. The above is submitted for your kind information. Yours faithfully, (Mahesh Chandra) Manager (Finance)” 5. As already stated above, and which is the argument of the respondent, that merely because the respondent corporation in order to facilitate its employees, made part payments of their salary in Iraqi Dinars in Iraq, cannot mean that for all times there is a legal obligation to make payment to employees such as the petitioners in Iraqi Dinars, more so, with respect to revised pay scales which comes into operation subsequently though with a retrospective effect because of implementation of 4th Pay Commission Report which became applicable from July, 1990. Also it is argued that admittedly petitioners No.2 to 4 were not in Iraq on the date when the 4th Pay Commission Report was implemented for the employees of the respondent. So far as the petitioner No.1 is concerned, the self-same argument of lack of this entitlement of Iraqi Dinars is pressed on account of lack of any contract or rules or circulars of respondent No.1. 6. In my opinion, no doubt, the writ petition would have to be allowed with respect to arrears of salary which had to be paid to the petitioners in terms of the office orders of the respondent dated 24.4.1991, 20.7.1990, 16.8.1990 and 20.12.1990, however, the arrears which would be paid to the petitioners will be in Indian Rupees. Since salary is not a favour which is done to employees or a bounty conferred, and petitioners have not received the arrears of salary of the enhanced amounts, they should be paid the arrears by implementation of the 4th Pay Commission Report alongwith interest as compensation for the delay in payment. Petitioners, therefore, will also be entitled to interest @ 12% p.a. simple with respect to the arrears payable to each of the petitioners, and this interest @ 12% p.a. will be payable on the balance amount payable to the petitioners in terms of the office orders dated 24.4.1991 (qua petitioner No.1) 20.7.1990 (qua petitioner No.2), 16.8.1990 (qua petitioner No.3) and 20.12.1990 (qua petitioner No.4). It is ordered that the entire arrears along with interest be paid to the petitioners within a period of three months from today. 7. It is ordered that the entire arrears along with interest be paid to the petitioners within a period of three months from today. 7. Writ petition is allowed and disposed of accordingly, leaving the parties to bear their own costs.