NATIONAL CONFEDERATION OF EX- EMPLOYEES ASSOCIATION Vs. SECRETARY MINISTRY OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES DEPARTMENT

JUDGEMENT

(1.) The petitioners in these batch of writ petitions are the employees of third respondent-BEML Limited, which is a Public Sector undertaking. Petitioner No.1 in W.P.Nos.36530- 36708/2016 is the Association of employees of BEML. The petitioners have worked as Executives with the respondent-BEML Limited. All the petitioners have retired from service between the period 01.01.2007 to 23.05.2010.

(2.) The Union of India had appointed Pay Revision Committee comprising of a Former Judge of the Hon'ble Supreme Court, Justice Shri M.Jagannadha Rao, as Chairman along with other eminent committee members to recommend revision of pay and allowances for Board level and below Board level executives and non-unisoned supervisors in Central Public Sector Enterprises. The Pay Revision Committee, after deliberations, submitted a report to the Government of India which was processed and approved by the Government. Thereafter, general directions were issued by the Union of India to all the administrative ministries and Public Sector Undertakings. This was followed by Presidential Directives issued by the Administrative Ministry for implementation. The Union of India, through the Secretary, Ministry of Heavy Industries and Public Enterprises, issued an Official Memorandum dated 26.11.2008 regarding revision of pay scales with effect from 01.01.2007 for a period of ten years.

(3.) The contention of the petitioners is that Clause (3) of the Official Memorandum dated 26.11.2008 pertains to enhancement of ceiling of gratuity of the Executives and non-unisoned supervisors which was enhanced from Rs.3.5 lakhs to Rs.10 lakhs with effect from 01.01.2007. Thereafter, the first respondent issued one more Official Memorandum dated 02.04.2009, directing all the Public Sector Undertakings including the third respondent- BEML to follow the directions given therein about the acceptance of the revision of pay scales and other benefits from 01.01.2007. Following the second Official Memorandum, the Board of Directors of the respondent-BEML, in the 283rd meeting held on 29.04.2009 passed a resolution approving the implementation of revised scales of pay with fitment benefits and also authorized the Chairman and Managing Director to take up with the Ministry for issuance of Presidential Directives. It is further contended by the petitioners that the second respondent-Ministry of Defence vide letter dated 30.04.2009, on the basis of the resolution passed by the Board, informed the third respondent-BEML that the revision of pay scales and other benefits as contained in the Official Memorandum dated 26.11.2008 and as amended from time to time, has been accepted and the Presidential Directives are issued for implementation with effect from 01.01.2007. It is further contended by the petitioners that the communication made by the second respondent-Ministry of Defence vide letter dated 30.04.2009 was also accompanied by a letter of even date with a directive to the third respondent to implement the Presidential Directives.