Case Note & Summary
The petitioner, Gunwanta Govinda, was appointed as a Time Rated Category employee in Pipla Colliery of Western Coalfields Limited (WCL) on 16/02/1981. After promotions, he was appointed as Mechanical Fitter Category-IV on 25/11/2005. During employment, he suffered physical disability and was referred to the Apex Medical Board, which opined that he had lowering of vision and was fit only for surface job. Consequently, by office order dated 28th/30th December, 2010, he was brought down from Category-IV to Category-I, reducing his pay scale from ₹551.07 to ₹345.67 with effect from 01/01/2011. Subsequently, WCL referred him to the Apex Medical Board again, and he was categorized as unfit. In terms of Clause 9.4.0 of NCWA-VI, his son was given employment as a dependent, and the petitioner retired. The petitioner challenged the reduction in pay scale before the Central Government Industrial Tribunal-cum-Labour Court (CGIT), Nagpur, which by award dated 24/09/2019 answered the reference in the negative, holding that the petitioner was not entitled to any relief. Aggrieved, the petitioner filed the present writ petition. The main legal issue was whether the reduction in pay scale from Category-IV to Category-I due to medical disability, without providing alternative employment in the same pay scale, was arbitrary and violative of Clause 9.4.0 of NCWA-VI and principles of natural justice. The petitioner argued that the reduction was arbitrary and that he should have been provided alternative employment in the same pay scale. The respondent-WCL contended that the reduction was justified as the petitioner was unfit for the higher category job. The court analyzed Clause 9.4.0 of NCWA-VI and held that it mandates that an employee rendered medically unfit for the job should be provided alternative employment in the same pay scale, not a reduction in pay scale. The court also noted that the order reducing the pay scale was passed without any opportunity of hearing to the petitioner, violating principles of natural justice. The court set aside the award of the CGIT and the office order dated 28th/30th December, 2010, and directed WCL to consider the case of the petitioner for alternative employment in the same pay scale as Category-IV, in accordance with Clause 9.4.0 of NCWA-VI, within a period of three months.
Headnote
A) Service Law - Medical Disability - Reduction in Pay Scale - Clause 9.4.0 of National Coal Wage Agreement-VI (NCWA-VI) - The petitioner, an employee of WCL, suffered physical disability and was found fit only for surface job. He was reduced from Category-IV to Category-I with reduction in pay scale from ₹551.07 to ₹345.67. The court held that the reduction in pay scale without providing alternative employment in the same pay scale is arbitrary and violative of Clause 9.4.0 of NCWA-VI, which mandates that an employee rendered medically unfit for the job should be provided alternative employment in the same pay scale. The court also held that the order was passed without giving any opportunity of hearing to the petitioner, violating principles of natural justice. (Paras 02-10) B) Industrial Law - Alternative Employment - Protection of Pay Scale - Clause 9.4.0 of NCWA-VI - The court interpreted Clause 9.4.0 of NCWA-VI to mean that when an employee becomes medically unfit for his current job, the employer must provide alternative employment in the same pay scale, not reduce the pay scale. The reduction in pay scale from Category-IV to Category-I was held to be arbitrary and unsustainable. (Paras 07-10) C) Administrative Law - Natural Justice - Opportunity of Hearing - The court noted that the office order dated 28th/30th December, 2010 reducing the petitioner's pay scale was passed without any notice or opportunity of hearing to the petitioner, which is a clear violation of principles of natural justice. (Para 08)
Issue of Consideration
Whether the reduction in pay scale of the petitioner from Category-IV to Category-I due to medical disability, without providing alternative employment in the same pay scale, is arbitrary and violative of Clause 9.4.0 of NCWA-VI and principles of natural justice.
Final Decision
The court allowed the writ petition, set aside the award dated 24/09/2019 passed by the CGIT, Nagpur, and the office order dated 28th/30th December, 2010 reducing the petitioner's pay scale. The court directed the respondent-WCL to consider the case of the petitioner for alternative employment in the same pay scale as Category-IV, in accordance with Clause 9.4.0 of NCWA-VI, within a period of three months from the date of the order.
Law Points
- Reduction in pay scale due to medical disability without providing alternative employment in same pay scale is arbitrary
- Clause 9.4.0 of NCWA-VI requires protection of pay scale
- principles of natural justice require opportunity of hearing before adverse order




