Court Denies Wage Revision for IDPL Employees: Financial Constraints and VRS Opt-In Grounds for Dismissal.

The HC dismissed the writ petition filed by IDPL officers and supervisors seeking interim relief and pay-scale revision per the Fifth Pay Commission. The court ruled that due to IDPL's financial incapacity and its status as a sick company, the petitioners, having opted for VRS, had no legal right to demand wage revision. The court found the claims lacked merit, referencing the inapplicability of the Jute Corporation judgment, and no costs were awarded.

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Issues Involved:
1. Non-payment of interim relief and revision of pay-scales.
2. Financial incapacity of IDPL and its impact on wage revision.
3. Legal right of employees to claim wage revision despite financial constraints.

Summary:

Non-payment of interim relief and revision of pay-scales:
The petitioners, officers and supervisors of IDPL, filed a writ petition challenging the non-payment of interim relief and revision of pay-scales as per the Fifth Pay Commission's recommendations. They argued that other public sector employees received these benefits, citing the judgment in Jute Corporation of India Officers' Association v. Jute Corporation of India Ltd. and Anr. [1990]2SCR1006. Despite legal notices and a contempt petition, the respondents cited financial constraints and unprecedented financial crunch as reasons for non-compliance.

Financial incapacity of IDPL and its impact on wage revision:
IDPL was declared a sick industrial company by BIFR and underwent a failed revival package. The respondents argued that due to continuous losses and lack of funds, IDPL could not implement wage revisions. The Government of India provided financial assistance only for salaries, and the decision for IDPL's revival was pending. The court noted that the economic viability of the employer is crucial for wage revision, referencing the principles laid down in Express Newspaper (Private) Ltd. and Anr. v. Union of India and Ors. (1961)ILLJ339SC and Hindustan Times Ltd., New Delhi v. Their Workmen (1963)ILLJ108SC.

Legal right of employees to claim wage revision despite financial constraints:
The court held that employees of government companies are not government servants and cannot claim a legal right for the government to meet additional expenditure for wage revision. The responsibility lies with the company, and if it is financially incapable, employees cannot demand revised pay-scales. The court referenced A.K. Bindal and Anr. v. Union of India and Ors. (2003)IILLJ1078SC, emphasizing that financial capacity is essential for wage revision.

Conclusion:
The court dismissed the writ petition, stating that the petitioners, having opted for VRS, cannot claim pay revision. The directions in Jute Corporation of India Officers' Association (supra) were deemed inapplicable due to IDPL's financial incapacity and failure of the revival scheme. The petitioners' claims were found to lack merit, and no costs were awarded.

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