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Dtc Security Staff Union (Regd.) vs Dtc

Supreme Court11 May 2018Navin Sinha · R. Banumathi · Ranjan Gogoi

Ratio decidendi

The rule this decision rests on

Industrial Tribunals should exercise restraint and refrain from interfering with pay-scale fixation, which is a highly technical and complex matter properly reserved for the Government and Pay Commissions, even where the Tribunal has evidence that similar duties exist in comparable organisations or where pay-scale parity previously existed for higher ranks. Where pay-scales of employees in government undertakings have been revised periodically by successive Pay Commissions, and a union has not raised its claim for appropriate pay-scale before any of those Pay Commissions, the subsequent determination of pay-scales by an Industrial Tribunal awarding parity on the basis of similarity in duties alone, without considering qualifications and methods of recruitment, will not be upheld. The doctrine of "equal pay for equal work" cannot be applied by an Industrial Tribunal to award parity in pay-scales merely because pay-scale parity existed for higher-ranked posts in the same organisation, particularly where the Tribunal offers no material evidence that such parity was consciously granted on substantive grounds relating to qualifications, duties, and recruitment methods.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

NON­REPORTABLE
IN THE SUPREME COURT OF INDIACIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO(s).5005  OF 2018(arising out of SLP(C) No.8039 of 2016)

DTC SECURITY STAFF UNION (REGD.) ….APPELLANT(S) VERSUS DTC AND ANOTHER ….RESPONDENT(S)

JUDGMENT

NAVIN SINHA, J.

Leave granted.

2. The Appellant sought a Reference on 24.10.1979, under

the Industrial Disputes Act, 1947 (hereinafter referred to as

‘the Act’) with regard to revision of pay­scale of Security Staff

up to the rank of Assistant Security Inspector, in the Delhi

Transport Corporation (hereinafter referred to as ‘the

Corporation’). The Industrial Tribunal, by Award dated

22.08.1985 held that Assistant Security Officer, Security

Havaldar and Security Guard in the services of the

Corporation were entitled to the pay­scale of Rs.425­700/­,

1 Rs.260­350/­ and Rs.225­308/­respectively, with effect from

01.10.1979, at par with their counterparts in the Delhi Police

Force. The Corporation challenged the Award unsuccessfully

before the Single Judge. The Division Bench set aside the

Award, and which is presently assailed.

3. Ms. Anitha Shenoy, learned counsel for the appellant,

submitted that the Tribunal granted parity in pay­scale with

the Delhi police based on consideration of material evidence

inter alia with regard to similarity in nature of duties, existing

parity for the post of Deputy Security Officer and Security

Officer with that in the Delhi Police, the next below post

principle in the Corporation itself, and the pay­scale available

to similarly situated security staff in the Food Corporation of

India, the Bharat Heavy Electricals Ltd, etc. In absence of any

infirmity in the decision­making process by the Tribunal, the

Division Bench erred in exercising appellate jurisdiction over

the Award. The principles and the nature of the jurisdiction

exercised under Article 226 of the Constitution of India with

2 regard to matters concerning pay­scale, including equal pay

for equal work, are fundamentally different from the

adjudication of the same by an Industrial Tribunal under the

Act. The primary purpose of industrial adjudication is to

ensure social justice, secure peace and harmony between the

employer and workmen and to ensure full cooperation between

them. The Tribunal for the purpose can confer rights and

privileges which it considers reasonable and proper and

essential for keeping industrial peace.

4. It is pointed out that parity in pay­scale of the security

cadre in the Corporation with that in the Delhi Police existed

till 1962. Thereafter, though parity existed with the Delhi

Police for the rank of Deputy Security Officer and Security

Officer in the Corporation, the same was denied for the post of

Assistant Security Officer, Security Havaldar and Security

Guard in the Corporation. The discrimination, for no

justifiable reason was completely arbitrary and contrary to the

constitutional ethos for a living wage and parity in pay­scales

3 based on wholesome identity, applying the principle of equal

pay for equal work, it is argued. There was a great amount of

similarity in the nature of duties of the three posts with that of

the equivalent ranks in the Delhi Police. Paucity of funds can

never be justification to deny parity in pay­scale, it is further

contended.

5. Dr. Monika Gusain, learned counsel for the Corporation,

submitted that the pay­scales for posts in the Security Cadre

were based on the 3rd Pay Commission recommendations

dated 01.01.1973. The pay­scales have been revised

periodically in accordance with recommendations of 4 th Pay

Commission dated 01.01.1986, 5th Pay Commission dated

01.01.1996, 6th Pay Commission dated 01.01.2006 and

ultimately the 7th Pay Commission recommendations have

been made applicable to the employees of the Corporation,

including the posts in the security cadre. The Corporation

was funded by the Government of the National Capital

Territory of Delhi, which did not approve implementation of

the award inter alia because of the financial implications. 4

6. We have considered the submissions. The Security

Cadre of the Corporation comprises of the Deputy Security

Officer, Security Officer, Assistant Security Officer, Security

Havaldar and Security Guard. Parity of pay­scales in the

security cadre of the Corporation, with that of the Delhi Police,

did exist till 1962. Pursuant to the 1 st and 2nd Pay

Commission recommendations, parity in pay­scales of Deputy

Security Officer and Security Officer was maintained with that

in the Delhi Police, but not for the rank of Assistant Security

Officer, Security Havaldar and Security Guard. Aggrieved,

the Appellant­Union sought Reference under the Act. The

Corporation contended in its written statement that pay­scales

of Assistant Security Officer, Security Havaldar and Security

Guard were fixed in accordance with the 3rd Pay Commission

recommendation dated 01.01.1973. A pay commission had

been constituted to prepare a wage structure for all employees

of the Corporation, and which was to submit its report shortly.

The Tribunal opined that it was an arduous and time

consuming task. On that basis, the Tribunal proceeded to

5 assume jurisdiction with regard to grant of the appropriate

pay­scale. It hardly needs emphasis that grant of pay scale is

a highly technical and complex matter, which requires

consideration of a host of factors, such as the qualifications

for the posts, the method of recruitment, the nature of duties,

etc. Therefore, the Courts/ Tribunal are loathe to interfere in

matters with regard to grant of pay­scale. In Union of India v.

P.V. Hariharan, (1997) 3 SCC 568, it was observed as

follows:­

“5…We have noticed that quite often the Tribunals are interfering with pay scales without proper reasons and without being conscious of the fact that fixation of pay is not their function. It is the function of the Government which normally acts on the recommendations of a Pay Commission. Change of pay scale of a category has a cascading effect. Several other categories similarly situated, as well as those situated above and below, put forward their claims on the basis of such change. The Tribunal should realise that interfering with the prescribed pay scales is a serious matter. The Pay Commission, which goes into the problem at great depth and happens to have a full picture before it, is the proper authority to decide upon this issue. Very often, the doctrine of “equal pay for equal work” is also being misunderstood and misapplied, freely revising and enhancing the pay scales across the board. We hope and trust that the Tribunals will exercise due restraint in the matter….” 6

7. There is no material to hold that pay­scale of Deputy

Security Officer and Security Officer in the Corporation was

consciously kept at par with that of the Delhi Police keeping in

mind aspects with regard to the qualifications, nature of

duties, etc. Merely because the pay­scale may have been and

remained the same, it cannot lead to the conclusion of a

conscious parity on the principle of equal pay for equal work

so as to make it discriminatory and a ground for grant of

parity to Assistant Security Officer, Security Havaldar and

Security Guard also. The Tribunal ought to have refrained

from going into the exercise of fixation of pay­scales no sooner

that it was brought to its attention that a Commission

constituted for the purpose was examining the same. Though

the Tribunal examined the pay scales given to similarly

situated security personnel in other organisations, and also

the next below post principle in the Corporation itself, ignoring

the difference in the methods of recruitment and qualifications

for appointment in the two organisations, it primarily based its

conclusion to grant parity of pay­scale to Assistant Security

Officer, Security Havaldar and Security Guard merely for the 7 reason that parity of pay­scale existed for the posts of Deputy

Security Officer and Security Officer with that of the Delhi

Police.

8. It is not in dispute that the pay­scale of the employees of

the Corporation, including the security cadre, have been

revised from time to time in accordance with the

recommendations of 4th, 5th, 6th Pay­Commission and now the

7th Pay­Commission. There is no material on record that the

appellant at any time filed any objection or raised issues for

grant of appropriate pay­scale either before the 4 th Pay­

Commission or the successive Commissions. If the award of

the Tribunal is to be implemented today, it will create a highly

anomalous position in the Corporation, and shall lead to

serious complications with regard to the issues of pay­scale

vis­à­vis recommendations of the Pay­Commission and would

generate further heartburn and related problems vis­à­vis

other employees of the Corporation.

8

9. The Government of Delhi, which would have had to bear

the financial burden, did not concur with the Board of the

Corporation to abide by the Award. The vast difference in the

nature of general duties performed by personnel of the police

force in contradistinction to that of security personnel

discharging limited security duties in the confines of the

Corporation hardly needs any emphasis. We find no reason to

interfere with the order of the Division Bench.

10. The appeal is dismissed.

………………………………….J. (Ranjan Gogoi)

………………………………….J. (R. Banumathi)

.……….………………………..J. (Navin Sinha) New Delhi, May 11, 2018.

9

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