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Nanupal Singh and Others vs Managing Director-Cum-Chairman, National Industrial Development Corporation Ltd.

Supreme Court20 December 1989K. Ramaswamy · P.B. Sawant · Ranganath Misra

Ratio decidendi

The rule this decision rests on

Where a public sector enterprise employs workers on a temporary or informal basis in a non-statutory service, and those workers have rendered long service and would face loss of livelihood and inability to secure alternative employment due to advanced age, the court may direct continuation of their employment pending identification of suitable alternative permanent positions, notwithstanding the enterprise's lack of statutory obligation to maintain that service. Where workers performing identical work to that of regularly classified employees have been in service for an extended period, the employer must have regard to the pay scales applicable to such regularly classified employees when determining reasonable salary scales for those workers, consistent with the principle of equal pay for equal work.

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

Judgment

As delivered

JUDGMENT
Ranganth Misra, J.

1. These are applications under Article 32 of the Constitution. Respondent the National Industrial Development Corporation Limited is a Government of India public sector enterprise and functions as consultants and engineers. The dispute in these cases relates to the employment of a Clerk, some Cooks and other employees in a canteen which was being run by the Corporation. The material placed on record shows that while the Corporation was proceeding to wind up the canteen, under interim orders of this Court the canteen has been continuing and the employment of the petitioners has not been terminated.

2. Several affidavits have fleen filed from time to time by parties; several interim orders have also been made over the years when these petitions have been pending before this Court; written submissions have also been furnished.

3. Counsel for the Corporation during the hearing of the matters took the stand that the Corporation was not interested in continuing the canteen as it is under no statutory obligation to maintain a canteen and the running of the canteen has been kept up only on account of the interim directions of this Court. At one stage, this Court had made an interim order suggesting to the Director of Canteen of the Government of India to absorb the petitioners. That, however, has not been possible as the responds indicates.

4. At the hearing we suggested to counsel for the Corporation that considering the handful employees working in the canteen who are petitioners before us and taking into account the fact that they have been serving for a good number of years and in the event of their employment being terminated they would be deprived of their source of livelihood and it would not be possible for them to get any other employment in view of their advanced age in life, the employment should not be terminated and the canteen should be continued providing employment to the petitioners, but as and when any suitable alternative is available for permanent absorption of the petitioners or some of them, they could be so absorbed, Mr. Francis, appearing for the Corporation has fairly accepted our suggestion.

5. It is not disputed that the petitioners have been rendering the same service as employees of their respective classifications render elsewhere. In view of the decisions of this Court that equal pay for equal work should be provided, we are sure that the Corporation would keep the relevant scales of pay in view while fixing the pay-scale of these petitioners. We may not be taken to have required the Corporation to fix the same scale though the prevailing scale should be kept in view while providing reasonable scales of salary for these petitioners.

6. These are not cases where technical aspects of the law advanced by the pleadings should be examined. Petitioners have been looking for their sustenance and we have considered it appropriate to dispose of these writ petitions with the aforesaid direction.

7 There will be no order as to costs.

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