LPA 783/2012 & C.M. No. 5754/2015. Case: National Institute of Public Finance and Policy Vs National Institute of Public Finance and Policy Employees Union. High Court of Delhi (India)

Case NumberLPA 783/2012 & C.M. No. 5754/2015
CounselFor Appellant: Manoj Chatterjee, K. Iyer and Drishti Chatterjee, Advocates and For Respondents: Abhishek Singh, Advocate
JudgesS. Ravindra Bhat and Deepa Sharma, JJ.
IssueConstitution of India - Article 226
Judgement DateJanuary 29, 2016
CourtHigh Court of Delhi (India)

Judgment:

Deepa Sharma, J.

  1. In this appeal the appellant has impugned the order of the Single Judge dated 01.08.2012.

  2. The brief facts of the case are that the appellant is an autonomous non-profit organization, registered with the Registrar of Societies on 05.04.1976 and was established with the joint initiative of Ministry of Finance (hereinafter referred to as 'MOF') and Planning Commission to carry out research and training activities in the areas of public finance and policy, public expenditure, budgetary control etc. A Memo of Understanding (MOU) dated 09.03.1988 was executed between MOF and the appellant. Under the MOU, the Central Government was to be represented by the Finance Secretary, Secretary (Revenue) and the Secretary, Planning Commission. The Chief Economic Advisor, Ministry of Finance and the Chairman, CBDT and the Chairman, CEBC were to be permanent invitees. Under the MOU the appellant was required to follow the Central Government's Rules relating to service conditions and pay and allowances for its non-professional core-staff and no revision in the scales of pay and allowances in respect of core staff was permissible except with the approval of the Ministry of Finance.

  3. At the time, when appellant society was formulated and registered, the pay scale of Assistants and Stenographers was fixed at ` 450-800 although the pay scale of Stenographer/Assistants of Central Secretariat Service (CSS) was fixed at ` 425-800 after the 3rd Pay Commission Report. After the 4th Pay Commission recommendations, the appellant adopted the scale of CSS fixed at ` 1400-2600 for the Assistants and Stenographers with effect from 01.01.1986. Subsequently, by OM 31.07.1990 the scale of Stenographers/Assistants of CSS was increased to ` 1640-2900. In terms of the MOU the appellant did not bring the scale of respondents at par with that of Central Government employees. They consequently raised an industrial dispute demanding the corresponding increase in their pay scale. A reference was made to Industrial Tribunal by the appropriate government's order dated 09.09.1997. The following were the terms of reference:

    Whether the Assistants and Stenographers of National Institute of Public Finance and Policy are entitled to fitment in the grade of Rs. 1640-2900 and revised D.A. and if so, what directions are necessary in this respect?

  4. The Tribunal passed an award dated 12.04.2002 whereby, based on the statement of Mr. Naveen Bhalla, the appellants' AO granted the relief to respondents. The relevant statement of Mr. Naveen Bhalla is reproduced:

    The Institute has already implemented the scale of pay in respect of Stenographers Gr.II of Rs. 5000-150-8000 to Rs. 5500-175-9000 w.e.f. August 2, 1999 with the approval of governing body of the institute. In respect of payment of arrears to the affected staff members w.e.f. 1.1.1986, the same will be paid to the staff members within three months from today latest by 31.1.2002, towards full and final settlement of this case.

  5. In the affidavit filed by appellant through Mr. Naveen Bhalla, the respondents claim was also admitted. This award was impugned before the Single Judge. The learned Single Judge after discussing the case laws i.e. West Bengal Vs. Subhas Kumar Chatterjee and Ors. (2010) 11 SCC 694, K.T. Veerappa and Ors. Vs. State of Karnataka and Ors. (2006) 9 SCC 406 and State of Haryana Vs. Haryana Civil Secretariat Personal Staff Association AIR 2002 SC 2589 dealing with the power of judicial review and relying on findings of the Supreme Court in Yogeshwar Prasad & Ors. vs. National Inst., Edu.Planning & Admn. & Ors. Civil Appeal Nos. 288-289 of 2005 held as under:

  6. However, in the present case there is a peculiar feature which would be evident from the chart below:

  7. A perusal of the above chart shows that from 1.1.1976 to 1.1.1986 the members of the Respondent No. 3 were getting a higher pay scale than the employees working in the same cadre in the Central Secretariat. The disparity arose...

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