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Supreme Court of India

NEW DELHI MUNICIPAL COUNCILversusPAN SINGH AND ORS.

Citation
2007 INSC 260
Decided
8 March 2007
Disposal
Appeal(s) allowed

Holding

The Tribunal’s award is confined to the class of workers who were in service on the cut‑off date and were parties to the dispute; it does not automatically bind the employer to extend the same benefit to later employees, and a writ petition filed after an unreasonable delay cannot be entertained.

Summary

The New Delhi Municipal Council (NDMC) had 17 senior Shift‑In‑Charge employees who voluntarily became Meter Readers and were given a higher pay scale as an ad‑hoc, personal measure. An industrial dispute was later raised by other Meter Readers, and the Industrial Tribunal awarded pay parity to those Meter Readers who were in service at the time the ad‑hoc benefit was granted, fixing a cut‑off date of 12‑Feb‑1982. Subsequent Meter Readers, appointed after that date, filed writ petitions in 1999 seeking the same pay scale, and the Delhi High Court allowed them, directing NDMC to grant parity. NDMC appealed, contending that the Tribunal’s award was limited to the class of workers existing on the cut‑off date and that the writ petitions were filed after an unreasonable delay. The Supreme Court held that Section 18(3)(b) of the Industrial Disputes Act does not extend the award to employees who were not parties to the dispute and were appointed after the cut‑off date, and that a writ petition filed after a 17‑year delay cannot be entertained. Consequently, the High Court’s order was set aside.

Issues considered

  • Whether the award of the Industrial Tribunal under Section 18(3)(b) of the Industrial Disputes Act extends to employees appointed after the cut‑off date who were not parties to the industrial dispute.
  • Whether a writ petition filed after a prolonged delay (17 years) can be entertained under Article 226.
  • Whether the discretionary jurisdiction of the High Court can be exercised in favour of such delayed petitioners.

Legislation cited

Subjects

Industrial disputePay paritySection 18 Industrial Disputes ActCut‑off dateWrit petitionDelayDiscretionary jurisdictionEqual payAd‑hoc pay protection

Judgment

                                  NEW DELHI MUNICIPAL COUNCIL                                A
       - I
                                                  }'.

                                       PAN SINGH AND ORS.

                                           MARCH 8, 2007
                                                                                             B
                            [S.B. SINHA AND MARKANDEY KA TJU, JJ.]


                   Labour Laws:

                   industrial Disputes Act, 1947; S.18:                                      c
                    Shifis-lncharge working in higher scale of pay opted to serve as Meter
              Readers in lower scale of pay-Pay protection provided by employer-New
              Delhi Municipal Council-Employees serving as Meter Readers at relevant
              time raising an industrial dispute claiming pay parity-Industrial Tribunal
              allowing pay parity to them fixing a cut-off date-Filing of a writ petition    D
              by subsequent appointee-Meter Readers claiming parity in pay scales with
              the earlier Awardees-Allowed by High Court-On appeal, Held: Employer
    -· ~      allowed higher pay scale to shift Incharge in order to protect their pay-
              /ndustrial Tribunal allowed pay parity to Meter-Readers who have been
             serving as such at the relevant time by fixing a cut-off date-Subsequent
             appointee-Meter Readers were neither parties to the Industrial dispute nor      E
              they raise any grievance in regard to their condition of service-They filed
              writ petition only after 17 years after their appointment-Discretionary
             jurisdiction may not be exercised in favour of those who have not approached
             the Court within a reasonable time-It was not a fit case where the High
             Court should have exercised its discretionary jurisdiction in favour of writ    F
             petitioners-Meter Readers-Hence, impugned order cannot be sustained and
             set aside.

                    There were posts of Meter Readers as also Shifts Incharge in the pay
             scale of Rs. 220-400 and Rs. 185-300 respectively in the New Delhi Municipal
             Council (NDMC)/appellant. The posts of Meter Readers were meant to be           G
             filled up by direct recruitment. 17 senior most Shifts In charge, however,

-            for certain reasons opted to become Meter Readers which was allowed by the
             appellant-employer. As they were working in a higher scale of pay, their pay
             was protected. Some other Meter Readers who were working as such at the
                                                 711                                         H
    712                   SUPREME COURT REPORTS                    [2007) 3 S.C.R.

A   relevant time raised an industrial dispu.te purported to be on the premise that
                                                                                      j .
    they had been discriminated against. The Industrial Tribunal by reason of an
    Award allowed pay parity to them. Subsequent appointees-Meter Readers/
    respondents filed a Writ Petition before the High Court claiming parity in
    the matter of grant of scale of pay with the Awardees-Meter Readers whose
    pay scale was revised earlier in terms of an Award of the Industrial Court.
B   The Writ Petitions have been allowed by the High Court observing that
    although they are not covered by the Award, but the appellant being model
    employer must grant the same scale of pay to them as granted earlier to other
    serving Meter Readers.

C         Appellant-ND MC contended that once the cut off date was fixed by the
    Tribunal, the respondents, having joined the services of the appellant
    thereafter, could not have been directed to be treated alike in the matter of
    grant of the same scale of pay; and that the Writ Petitions having been filed
    in July, 1999, the High Court committed a serious illegality in directing back
    wages in their favour.
                                                                                                -
D
          Respondent submitted that the Award of the Industrial Tribunal was
    binding upon the appellant in terms of Section 18(3)(b) of the Industrial
    Disputes Act and in that view of the matter, as respondents perform same or         )"' ~
    similar nature of duties as are being performed by the other workmen, they
    were entitled to be treated alike; and that the respondent did not raise a
E   separate industrial dispute as they had all along been under the impression
    that they would be covered by the Award which may be made in the said
    Reference.

          Allowing the appeal, the Court

F         HELD: 1.1. Seventeen persons who were granted higher scale of pay
    had been working as Shifts In charge. As Shifts In charge, they were entitled               \   .

    to a higher scale of pay. They were given a higher scale so as to protect
    their pay which were personal to them and that too on an ad-hoc measure. It
    was not by way of a revision of scale of pay as understood in the ordinary
G   sense of the term. [Para to] [717-C)

          1.2. The Industrial Tribunal in its A ward proceeded on the basis that
    the concerned workmen were entitled to the benefit of higher scale as they
    were similarly situated to those 17 senior most Meter Readers. The direction
    in terms of the Award was confined only to those who were in employment at
H   the time when the said benefit was given to the said 17 Meter Readers. They,
                         NEW DELHI MUNICIPAL COUNCIL r. PAN SINGH                      713
          · thus, formed a class by themselves. A cut-off date having been fixed by the       A
     -~     Tribunal, those who were thus not similarly situated, were to be treated to
            have formed a different class. They could not be treated alike with the others.
            The High Court has not considered this aspect of the matter.
                                                        jParas 11, 12 and 131 (717-E, Fl

                 1.3. Although, Section 18(3)(b) of the Industrial Disputes Act provides      B
          that all workmen who were employed in an establishment, subsequently become
          employed therein would also be bound by the Award of the Industrial Tribunal.
          But, they must be entitled to the similar benefits. Respondents were not
          parties to the said dispute. They did not raise any grievance in regard to
          their conditions of service. Had they been parties to the Reference, the matter     C
          might have been otherwise. (Para 1411717-H; 718-A-B)

              Punjab National Bank And Ors v. Manjeet Singh And Anr., (2006) 8
          sec 647, relied on.
                 1.4. There is another aspect of the matter which cannot be lost sight of.    D
           Respondents filed a Writ Petition after 17 years. They did not agitate their
          grievances for a long time. They did not claim parity with the 17 workmen at
          the earliest possible opportunity. They did not implead themselves as parties
          even in the reference made by the State before the Industrial Tribunal. It is
          not their case that those employees who were employed or who were recruited
          after the cut-off date have been granted the said scale of pay. After such a        E
          long time, therefore, the Writ Petitions could not have been entertained even
          if they are similarly situated. It is trite that the discretionary jurisdiction
          may not be exercised in favour of those who approach the Court after a long
          time. Delay and !aches are relevant factors for exercise of equitable
          jurisdiction. (Para 1611718-D-EI
                                                                                              F
..              Govt. of WB. v. Tarun K. Roy And Ors .. [200411 SCC 347; Chairman,
          U.P. Jal Nigam & Anr. v. Jaswant Singh And Anr.. (2006) 12 SCALE 347 and
          Karna/aka Power Corpn. Ltd. through its Chairman & Managing Director
          and Anr. v. K. Thangappan and Anr., [2006) 4 SCC 322, relied on.

               · 1.5. Although, there is no period oflimitation provided for filing a Writ
                                                                                              G
          Petition under Article 226 of the Constitution of India, ordinarily, Writ
          Petition should be filed within a reasonable time. [Para 17) (718-GI

               Lipton India Ltd. and Ors. v. Union Of India And Ors., (1994) 6 SCC
          524 and MR, Gupta v. Union of India And Ors.. (1995( 5 SCC 628, referred            H
    714                   SUPREME COURT REPORTS                   [2007] 3 S.C.R.

A to.
                                                                                     f. -
           l.6. It was not a fit case where the High Court should have exercised
    its discretionary jurisdiction in favour of the respondents.

          Shiv Dass v. Union of India & Ors., (2007) 2 SCALE 325 : (2007) I
B Supreme 455, referred to.
          CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1214 of2007.

         From the Judgment and Order dated 21 J.2005 of the High Court of Delhi
    at New Delhi in W.P. No. 4661/1999.
                                                                                                .-
c        Rakesh K. Khanna, Dr. Rashmi Khanna, Surya Kant, Shailja Sinha,
    Jahanvi Worah and Neeraj Sharma for the Appellant.

          Asha Jain Madan, Mukesh Jain and Ambar Jain for the Respondents.

D         The Judgment of the Court was delivered by

          S.B. SINHA, J. I. Leave granted.

          2. Appellant is a local authority constituted under the New Delhi           .,,._ •
    Municipal Act, 1994. It has been performing its municipal functions in the
E   New Delhi area; one of them being distribution of electricity to the consumers
    upon buying the same from the Electricity Supply Companies. For the said
    purpose, it has a electricity department. In the said department, there were
    posts of Meter Readers as also Shifts Incharge. The pay scale of Shifts In-
    charge was Rs. 220-400 and that of the Meter Readers Rs. 185-300. The post
    of Meter Readers was meant to be filled up by direct recruitment. 17 senior
F   most Shift In charge, however, for certain reasons opted to become Meter
    Readers. As they were working in a higher scale of pay, their pay was
    protected. Such protection of pay was given to them by an Order dated
    I0.2.1982, stating :
                                                                                            .   -

            "I. The matter regarding revision of pay scale from Rs. 185-300 to
G           Rs. 220-440 of those Meter Readers who were promoted as Meter
            Readers from the Cadre of Shift-In-charge II Grade was discussed in
            the meeting held on 15 .12.81 at 11.00 AM under the Chairmanship of
            the Administrator. It was decided by the Administrator that the matter
            be examined whether higher pay scale of Rs. 220-400 could be given
                                                                                                -
H           to the 17 such senior-most Meter Readers, purely as ori ad hoc
                NE\\ DELHI MUNICIPAL COUNCIL"· PAN SINGH [S.B. SINHA . .I.]          715
                  measure which would be personal to them.                                  A
                 2. Accordingly, the case was discussed in the meeting of Heads of
                 Departments namely CE(E)/CE(C)/F A,CA, Secretary, MOH, DD(H) and
                 LWO headed by the Administrator on 06.02.1982 and was decided that
                 the pay scale of Rs. 220-10-300-EB-400 be allowed w.e.f. 6.2.82 to all
                 those 17 Meter Readers who had previously worked as Shift In charge        B
                 Grade I!, but this revision of scale will be personal to them without
                 making any precedent..."

                3. Some other Meter Readers who were in services of the appellant at
         the relevant time raised an industrial dispute purported to be on the premise
         that they had been discriminated against. Reference was made to the Presiding C
         Officer, Industrial Tribunal No. 3, Delhi for detem1ination of inter-alia the
         following industrial dispute:-

                 "!. Whether the pay scale of Meter Readers should be revised from
                 Rs. 520-815 to Rs. 590-10001- as has been done in case of 17 Meter
                 Readers namely I) Shri Turen Singh, 2) Ram Chander Singh, 3) Shri          D
                 Rameshwar Lal Bali, 4. Shri Prem Chand Sharma, 5. Raj Kumar Kalia
.   -~
                 (6) Sh. Prabhu Dayal, (7) Sh. Anand Kishore Aggarwal, (8) Shri
                 Jagannath Pars had, (9) Sh. D.P. Malhotra, (I 0) Sh. Bhu Dev Sharma,
                 (I I) Sh. Sukh Dev Singh, (12) Shri Ajaib Singh, (13) Shri H.C. Chauhan,
                 (14) Shri K.S. Rawat, (15) Shri Devi Sanai, (16) Shri MansaRam, (17)       E
                 Shri Subhash Chand Sharma and if so what directions are necessary
                 in this respect?"

               4. Respondents were not parties therein. They did not file any application
         for their impleadment. By reason of an Award dated 7.1.1998, the Industrial
         Court directed :-                                                                  F
                "In the light of the above observations of the meter readers, who were
                in service at the time when the benefit was given to 17 meter readers,
                whose names are morefully detailed in Annexure B of claim statement
                are entitled to get the benefit of the said order in the similar manner
                in which the same has been given to those 17 meter readers purely G
                as an adhoc measure to be personal to them and discrimination made
    y
                by the management amongst the same class of meter readers is an act
                of arbitrariness and amounts to misuse of the principles of law. The
                management is directed to pay the arrears of the said amount on the
                same analogy to which 17 meter readers have been given benefit to H
    716                   SUPREME COlJRT REPORTS                    [2007] 3 S.C.R.

A           the same as per order dated 12.02.82 within a period of6 months from        ~.-
            the date the award become enforceable under law failing which the
            meter readers of the said period will be entitled to get an interest @
             18% per annum to the same ..."

          5. The respondents were appointed after 12.2.1982 i.e during the period
B 1.4.1982 and 3.6.1984. They filed a Writ Petition claiming parity in the matter
    of grant of scale of pay by filing a Writ Petition with the Awardees before
    the High Court of Delhi. By reason of the impugned Judgment, the said Writ
    Petitions have been allowed stating that although they are not covered by
    the Award, the appellant being model employer must treat the employees
    similarly situated and, thus as the respondents had passed the test in June,
c    1981, they could not be denied the pay scale which has been granted to them.

          6. Respondent filed the Writ Petition in July, 1999 claiming inter-alia the
    following reliefs:-

            "(a) Issue an appropriate writ, order or direction to the Respondent
D                to grant to the petitioners the benefit of the revised pay scale,
                 as had been granted to other meter readers vide office order
                 dated 10.02.1982 (Annexure-B). Office order dated 23.12.1998             y..· •
                 (Annexure-D) and office order dated 17.5.1999 (Annexure - D-1)
                 alongwith all the consequential reliefs.
E           (b) Grant to the petitioners the appropriate amount of damages
                including cost of the present petition as also such other or
                fu1ther reliefs as this Hon'ble Court may deem fit, proper and
                expedient in the facts and circumstances of the present case."

          7. Mr. Rakesh K. Khanna, learned senior counsel appearing on behalf
F   of the appellant would urge that once the cut off date was fixed by the
                                                                                          ~
    Tribunal as on 6.2.1982, the respondents, having joined the services of the
    appellant thereafter, could not have been directed to be treated alike in the
    matter of grant of the same sc.ale of pay. In any event, the Writ Petitions
    having been filed in July, 1999, the High Court committed a serious illegality
G   in directing back wages in their favour.

          8. Ms. Asha Jain Madan, learned counsel appearing on behalf of the                  "<   ~

     respondent, on the other hand, would submit that the Award of the Industrial
     Tribunal was binding upon the appellant in terms of Section 18(3 )(b) of the
     Industrial Disputes Act and in that view of the matter, as respondents perform
H    same or similar nature of duties as are performed by the other workmen, they
                            NEW DELHI MUNICIPAL COUNCIL v. PAN SINGI I [S.13. SINHA. J.]          717
                      were entitled to be treated alike. The learned counsel would contend that the      A
                -~    respondent did not raise a separate industrial dispute as they had all along
                      been under the impression that they would be covered by the Award which
                      may be made in the said Reference.

                            9. Respondents were appointed on different dates, admittedly after
                      6.2.1982. Entitlement of an employee to be placed on a particular scale of pay     B
                      would depend upon the terms and conditions laid down in the contract of
                      service.

                            I0. Seventeen persons who were granted higher scale of pay as noticed
                      hereinbefore had been working as Shifts in charge. As Shifts In charge, they
                      were entitled to a higher scale of pay. They were given a higher scale so as
                                                                                                         c
                      to protect their pay which were personal to them and that too on an ad-hoc
                      measure. It was not by way of a revision of scale of pay as understood in
                      the ordinary sense of the term.

                            11. Those Meter Readers who were purported to be similarly situated          D
                      meaning thereby those who were in service as on 12.2.1982 i.e. the date when
                      the purported pay scales of 17 senior most Meter Readers on ad-hoc basis
            ~   -.(
                      were revised, raised an industrial dispute. The Industrial Tribunal in its Award
                      proceeded on the basis that the concerned workmen were entitled to the
                      benefit of higher scale as they were similarly situated to those 17 senior most
                      Meter Readers.                                                                     E

                            12. The direction in terms of the Award was confined only to those who
                      were in employment at the time when the said benefit was given to the said
                      17 Meter Readers.

                             13. They, thus, formed a class by themselves. A cut-off date having         F
                 i.   been fixed by the Tribunal, those who were thus not similarly situated, were
        ~
                      to be treated to have formed a different class. They could not be treated alike
                      with the others. The High Court, unfortunately, has not considered this
                      aspect of the matter.

\                            14. Submission of learned counsel for the respondent that Section G
                       I8(3)(b) of the Industrial Disputes Act would govern the Award, in our
                 i
    /
        "             opinion is not correct. Section 18(3 )(b) although, provides that all workmen
                      who were employed in an establishment, subsequently become employed
                      therein would also be bound by the Award of the Industrial Tribunal. But,
                      they must be entitled to the similar benefits. Respondents were not parties H
    718                      SUPREME COURT REPORTS                    (2007] 3 S.C.R.

A to the said dispute. They did not raise any grievance in regard to their
    conditions of service.

           15. Had they been parties to the Reference, the matter might have been
    otherwise, as was held in Punjab National Bank And Ors v. Manjeet Singh
    And Anr., (2006] 8 SCC 647, whereupon Ms. Asha Jain Madan, learned
B   counsel for respondent strongly relied upon. Section 18(3)(b) does not postulate
    that although the concerned workmen would form different classes, an Award
    made in favour of another class of workmen would automatically be extended
    to the other. In l'uniab National Bank (supra), the workman contended that
    they were not bound by the Award, which contention was rejected having
C   regard to the fact that they were similarly situated and in fact were parties in
    the industrial disputes and were represented through their Union.

          16. There is another aspect of the matter which cannot be lost sight of.
   Respondents herein filed a Writ Petition after 17 years. They did not agitate
   their grievances for a !ong time. They, as noticed herein, did not claim parity
D with the 17 workmen at the earliest possible opportunity. They did not imp lead
   themselves as parties even in the reference made by the State before the
   Industrial Tribunal. It is not their case that after 1982, those employees who
   were employed or who were recruited after the cut-off date have been granted
   the said scale of pay. After such a long time, therefore, the Writ Petitions
  .could not have been entertained even if they are similarly situated. It is trite
E that the discretionary jurisdiction may not be exercised in favour of those who
   approach the Court after a long time. Delay and !aches are relevant factors
   for exercise of equitable jurisdiction. See Govt. of W.B. v. Tarun K. Roy And
   Ors., ('2004] I SCC 347, Chairman, U.P. Jal Nigam & Anr. v. Jaswant Singh
   and Anr., (2006) 12 SCALE 347 and Karna/aka Power Corpn. Ltd. through
F its Chairman & Managing Director and Anr. v. K. Thangappan and Anr.,
   [2006J 4 sec 322.

           17. Although, there is no period of limitation provided for filing a Writ
    Petition under Article 226 of the Constitution of India, ordinarily, Writ Petition
    should be filed within a reasonable time.
G
         18. See Lipton India ltd. And Ors. v. Union of India And Ors., (1994]
    6 SCC 524 and M.R. Gupta v. Union of India And Ors., [ 1995] 5 SCC 628.

          19. In Shiv Dass v. Union of India & Ors., (2007) 2 SCALE 325 : (2007)
    I Supreme 455, this Court held:-
H
                  NEW DELHI MUNICIPAL COUNCIL" PAN SINGH [S.B. SINHA. J.J            719

                      "9. It has been pointed om by this Court in a number of cases A
.   -~            that representations would not be adequate explanation to take care
                  of delay. This was first stated in K. V. Raja Lakshmiah v. State of
                  Mysore, AIR (1967) SC 993. There is a limit to the time which can be
                  considered reasonable for making representations and if the Government
                  had turned down one representation the making of another
                  representation on similar lines will not explain the delay. In State of B
                  Orissa v. Sri Pyarimohan Samantaray, AIR ( 1976) SC 2617 making of
                  repeated representations was not regarded as satisfactory explanation
                  of the delay. In that case the petition had been dismissed for delay
                  alone. See State of Orissa v. Arun Kumar, AIR 1976 SC 1639 also.

                      10. In the case of pension the cause of action actually continues C
                  from month to month. That, however, cannot be a ground to overlook
                  delay in filing the petition. It would depend upon the fact of each
                  case. If petition is filed beyond a reasonable period say three years
                  normally the Court would reject the same or restrict the relief which
                  could be granted to a reasonable period of about three years. The . D
                  High Court did not examine whether on merit appellant had a case. If
                  on merits it would have found that there was no scope for interference,
                  it would have dismissed the writ petition on that score alone."

               20. We, therefore, are of the opinion that it was not a fit case where the
         High Court should have exercised its discretionary jurisdiction in favour of       E
         the respondents herein.

               21. For the reasons aforementioned, impugned Judgment cannot be
         sustained which is set aside accordingly. The Appeal is allowed. In the facts
         and circumstances of the case, however, there shall be no order as to costs.
                                                                                            F
         S.K.S.                                                        Appeal allowed.


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