Supreme Court Dismisses Appeal in Equal Pay Dispute After Settlement Rendered Merits Moot. Tribunal Jurisdiction Under Administrative Tribunals Act, 1985 Applied to Daily Wage Employees, Divesting High Court Under Article 226.

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Case Note & Summary

The dispute arose when daily wage employees of the Himachal Pradesh State Electricity Board claimed equal pay on par with regular clerks, alleging that they were performing duties of clerks but were paid only daily wages as T. Mates. The employees approached the High Court, which accepted their contention and directed payment of equal pay. The Board appealed to the Supreme Court challenging both the merits and the jurisdiction of the High Court. During the pendency of the proceedings, a settlement was reached between the Board and the employees, and earlier writ petitions concerning the same issue were disposed of by the Supreme Court on May 10, 1991, in terms of that settlement. Consequently, the sole surviving legal issue was whether the High Court had jurisdiction to decide the dispute of daily wage employees working under the Board after the enactment of the Administrative Tribunals Act, 1985. The appellants contended that under Section 14 of the Act, all jurisdiction, power and authority exercisable by all courts except the Supreme Court had been vested in the Central Administrative Tribunal, and therefore the High Court lacked jurisdiction. The respondents argued that since they were daily wage employees not holding any civil post and engaged only on casual basis, the provisions of the Act were not attracted. The Supreme Court referred to its earlier decision in Union of India v. Deep Chand Pandey, where the same contention was raised regarding casual typists. In that case, the Court had held that the scope of Article 323-A is very wide, and by enacting the 1985 Act, the Parliament had exercised this power in almost full measure. An examination of Section 14 and Section 3(q) indicated that the Act covers a very wide field and there is nothing to suggest that the provisions dealing with the jurisdiction of the Tribunal should receive a narrow interpretation. Following this precedent, the Supreme Court held that the High Court had been divested of its power and jurisdiction under Article 226 of the Constitution, and such jurisdiction vested in the Administrative Tribunals constituted under the Act. However, because the claims on merits had been settled between the parties, the Court declined to interfere with the matter. The appeals were accordingly disposed of with no order as to costs.

Headnote

A) Administrative Law - Jurisdiction of High Court and Administrative Tribunals - Section 14 and Section 3(q), Administrative Tribunals Act, 1985; Article 226 and Article 323-A, Constitution of India - Scope of Administrative Tribunals Act is very wide and not to receive narrow interpretation; High Court divested of jurisdiction over service matters covered by the Act - The Supreme Court considered whether daily wage employees of a State Electricity Board, not appointed to a substantive post, fell within the jurisdiction of the Administrative Tribunal and outside High Court's writ jurisdiction. Relying on Union of India v. Deep Chand Pandey, the Court held that Section 14 read with Section 3(q) of the Act vests all jurisdiction, power and authority in the Administrative Tribunals, excluding the Supreme Court, and that the High Court was divested of its power under Article 226. The Court declined to interfere with the High Court's order because the merits of the equal pay claim had been settled between the parties. Held that the High Court had been divested of jurisdiction and the matter vested in the Administrative Tribunals under the Act.

B) Service Law - Equal Pay for Equal Work - Settlement of Service Dispute - Not mentioned - Equal pay claim for daily wage employees performing clerical duties was resolved by a settlement between the employer and employees - The respondents, appointed as daily wage T. Mates but allegedly performing clerical duties, sought equal pay with regular clerks. The High Court had directed equal pay. Before the Supreme Court, the appellant brought a settlement to the Court's notice; earlier writ petitions were disposed of in terms of that settlement by order dated May 10, 1991. The Court observed that the controversy on merits no longer survived. Held that since the claims on merits had been settled, the Supreme Court declined to interfere with the matter and disposed of the appeals without costs.

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Issue of Consideration

Whether the High Court had jurisdiction to entertain claims of daily wage employees of the Himachal Pradesh State Electricity Board for equal pay after the enactment of the Administrative Tribunals Act, 1985, given that such employees were not appointed to a regular post.

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Final Decision

The Supreme Court held that the High Court had been divested of its power and jurisdiction under Article 226 of the Constitution, and the same vested in the Administrative Tribunals constituted under the Administrative Tribunals Act, 1985. However, since the claims on merits had been settled, the Court declined to interfere with the matter. The appeals were disposed of with no order as to costs.

Law Points

  • Section 14 read with Section 3(q) of Administrative Tribunals Act
  • 1985 vests all jurisdiction in Administrative Tribunals
  • High Court divested under Article 226
  • scope of Article 323-A wide
  • daily wage employees covered under Act
  • equal pay dispute settled
  • res integra principle not applicable
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Case Details

1995 LawText (SC) (09) 13

Civil Appeal Nos. 8087 of 1995 (Arising out SLP (C) No. 3171 of 1990) and Civil Appeal No. 8087 of 1995 @ SLP (C) No. 3171 of 1989

1995-09-01

K. Ramaswamy, B.L. Hansaria

1996 AIR 615, 1995 SCC (5) 678, JT 1995 (6) 517, 1995 SCALE (5) 224

Himachal Pradesh State Electricity Board, Shimla and Others

Tirath Raj and Others etc. etc.

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Nature of Litigation

Dispute over equal pay for daily wage employees who claimed they were performing clerical duties; challenge to High Court's jurisdiction after Administrative Tribunals Act, 1985.

Remedy Sought

Respondents sought equal pay on par with regular clerks; appellants sought reversal of High Court's order on ground of lack of jurisdiction.

Filing Reason

Daily wage employees alleged they were holding posts of clerks and performing duties but were not paid salaries equal to regular clerks.

Previous Decisions

High Court accepted the employees' contention and directed payment of equal pay. Earlier writ petitions concerning the same issue were disposed of by Supreme Court on May 10, 1991, in terms of a settlement between the parties.

Issues

Whether the High Court had jurisdiction to entertain claims of daily wage employees of the Himachal Pradesh State Electricity Board after the enactment of the Administrative Tribunals Act, 1985. Whether daily wage employees who were not appointed to a substantive post were excluded from the purview of the Administrative Tribunals Act, 1985.

Submissions/Arguments

Appellant contended that under Section 14 of the Administrative Tribunals Act, 1985, all jurisdiction, power and authority exercisable by all courts except the Supreme Court vested in the Central Administrative Tribunal, so the High Court lacked jurisdiction. Appellant argued that the equal pay dispute was already settled between the parties, and therefore the merits no longer survived. Respondents contended that since they were daily wage employees not appointed to a post and engaged only on casual basis, the provisions of the Administrative Tribunals Act, 1985 were not attracted. Respondents claimed equal pay for equal work on par with regular clerks.

Ratio Decidendi

Under Section 14 read with Section 3(q) of the Administrative Tribunals Act, 1985, all jurisdiction, power and authority exercisable by all courts except the Supreme Court are vested in the Administrative Tribunals. The Act covers a very wide field and should not receive a narrow interpretation; daily wage employees engaged on casual basis are not excluded from the Act's purview. Consequently, the High Court is divested of jurisdiction under Article 226 for service matters falling under the Act.

Judgment Excerpts

The scope of Article 323-A permitting the Parliament to legislate on the subject covered therein is, having regard to the language, very wide, and by enacting 1985 Act this power has been exercised in almost full measure. An examination of Section 14 and Section 3(q) clearly indicates that the Act covers a very wide field, and there is nothing to suggest that the provisions dealing with the jurisdiction of the Tribunal should receive a narrow interpretation. In view of the law thus laid, we hold that the High Court had been divested, in the present case too, of the power and jurisdiction under Article 226 of the Constitution and the same vested in the Administrative Tribunals constituted in that behalf under the Act. However, since the claims on merits have been settled, we decline to interfere with the matter. The appeal is accordingly disposed of. No costs.

Procedural History

The respondents filed writ petitions before the High Court claiming equal pay on par with regular clerks. The High Court accepted the contention and directed payment of equal pay. The appellant Board filed special leave petitions before the Supreme Court challenging the High Court's order. During the pendency, a settlement was reached between the Board and the employees, and earlier writ petitions were disposed of by the Supreme Court on May 10, 1991, in terms of that settlement. Leave was granted in the present matters, and after hearing, the Supreme Court held that the High Court lacked jurisdiction but declined to interfere because the merits were settled. The appeals were disposed of on September 1, 1995, with no costs.

Acts & Sections

  • Administrative Tribunals Act, 1985: Section 14, Section 3(q)
  • Constitution of India: Article 226, Article 323-A
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