OFFICERS AND SUPERVISORS OF I.D.P.L. versus CHAIRMAN AND M.D.I.D.P.L. AND ORS.

OFFICERS AND SUPERVISORS OF I.D.P.L. versus CHAIRMAN AND M.D.I.D.P.L. AND ORS.

Employees of government companies are not government servants and, where the company is a sick unit incapable of revival due to continuous heavy losses, employees cannot claim a legal right to revision of pay-scales or direct the Central Government to bear the additional wage expenditure; economic viability and financial capacity are vital factors in pay revision; petitioners having opted for Voluntary Retirement Scheme are not entitled to wage revision.

Parties
Petitioner: Officers and Supervisors of I.D.P.L.; Respondent: Chairman and M.D. I.D.P.L.; Respondent: Secretary, Ministry of Industry
Jurisdiction
India
Judgment Date
24 July 2003
Procedural Posture
Writ Petition / Final Judgment
Outcome
petition dismissed
Legal Topics
Pay Commission, Public Sector Enterprises, Wage Revision, Financial Inability, Voluntary Retirement Scheme
Service Law Pay Commission Public Sector Enterprises Wage Revision Financial Inability Voluntary Retirement Scheme

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Parties

Officers and Supervisors of I.D.P.L.

Petitioner

Chairman and M.D. I.D.P.L.

Respondent

Secretary, Ministry of Industry

Respondent

Procedural Posture

Writ Petition / Final Judgment

Legal Issues

  1. 1 Whether officers and supervisors of IDPL are entitled to revision of pay-scales and allowances in line with Central Government employees when IDPL is a sick unit
  2. 2 Whether Central Government is obliged to bear additional wage expenditure for public sector employees when the undertaking lacks financial capacity

Ratio Decidendi

Employees of government companies are not government servants and, where the company is a sick unit incapable of revival due to continuous heavy losses, employees cannot claim a legal right to revision of pay-scales or direct the Central Government to bear the additional wage expenditure; economic viability and financial capacity are vital factors in pay revision; petitioners having opted for Voluntary Retirement Scheme are not entitled to wage revision.

Court Disposition

petition dismissed

Orders

  • Petition dismissed; no order as to costs.