Bombay High Court Allows Writ Petition of Ex-Employee of WCL Challenging Reduction in Pay Scale Due to Medical Disability. Reduction from Category-IV to Category-I without considering alternative employment in same pay scale violates Clause 9.4.0 of NCWA-VI and principles of natural justice.

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
  • 1
Judgement Image
Font size:
Print

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)

Subscribe to unlock Headnote Subscribe Now

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.

Subscribe to unlock Issue of Consideration Subscribe Now

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
Subscribe to unlock Law Points Subscribe Now

Case Details

2022 LawText (BOM) (03) 102

Writ Petition No.432 of 2021

2022-03-17

Manish Pitale, J.

Mr. B. Lahiri for the Petitioner, Mr. C.S. Samudra for Respondent No.1

Gunwanta Govinda

The Chief General Manager, Western Coalfields Limited, Nagpur Area, and The General Secretary, Lal Zenda Coal Mines Mazdoor Union (CITU)

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Writ petition challenging the award of the Central Government Industrial Tribunal-cum-Labour Court, Nagpur, which upheld the reduction in pay scale of the petitioner from Category-IV to Category-I due to medical disability.

Remedy Sought

The petitioner sought to set aside the award dated 24/09/2019 and the office order dated 28th/30th December, 2010 reducing his pay scale, and sought direction to WCL to provide alternative employment in the same pay scale.

Filing Reason

The petitioner was aggrieved by the reduction in his pay scale from ₹551.07 to ₹345.67 due to medical disability, without being provided alternative employment in the same pay scale, and the CGIT upheld the reduction.

Previous Decisions

The Central Government Industrial Tribunal-cum-Labour Court, Nagpur, by award dated 24/09/2019, answered the reference in the negative against the petitioner, holding that he was not entitled to any relief.

Issues

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? Whether the order reducing the pay scale was passed in violation of principles of natural justice?

Submissions/Arguments

The petitioner argued that the reduction in pay scale was arbitrary and that he should have been provided alternative employment in the same pay scale as per Clause 9.4.0 of NCWA-VI. The respondent-WCL contended that the reduction was justified as the petitioner was unfit for the higher category job and that the reduction was in accordance with the applicable rules.

Ratio Decidendi

Clause 9.4.0 of NCWA-VI mandates 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. Any reduction in pay scale without providing alternative employment in the same pay scale is arbitrary and violative of the agreement. Additionally, such an order cannot be passed without giving an opportunity of hearing to the employee, as it violates principles of natural justice.

Judgment Excerpts

By this writ petition, the petitioner has challenged award dated 24/09/2019 passed by the Presiding Officer, Central Government Industrial Tribunal (CGIT)-cum-Labour Court, Nagpur, whereby a Reference has been answered in the negative against the petitioner and it has been held that the petitioner is not entitled to any relief. The facts leading up to the file of the present petition are that the petitioner was appointed in Time Rated Category on 16/02/1981 in Pipla Colliery of the respondent-Western Coalfields Limited (WCL) and upon promotions, on 25/11/2005, he was appointed in the post of Mechanical Fitter Category-IV. Upon examining the petitioner, the Board opined that he had suffered from lowering of vision and that he was now fit only for surface job. Accordingly, the petitioner was deployed on surface job and by office order dated 28th/30th December, 2010, he was brought down from Category-IV to Category-I, thereby reducing his existing pay scale of ₹551.07 to lower pay scale of ₹345.67 with effect from 01/01/2011. In terms of Clause 9.4.0 of the National Coal Wage Agreement-VI (NCWA-VI), the son of the petitioner, as dependent, was given employment and the petitioner stood retired.

Procedural History

The petitioner was appointed in WCL on 16/02/1981 and promoted to Category-IV on 25/11/2005. Due to medical disability, he was found fit only for surface job, and by office order dated 28th/30th December, 2010, his pay scale was reduced from Category-IV to Category-I. He was later declared unfit and retired under Clause 9.4.0 of NCWA-VI. The petitioner raised an industrial dispute, which was referred to the CGIT, Nagpur. The CGIT passed an award on 24/09/2019 answering the reference in the negative. The petitioner then filed the present writ petition before the Bombay High Court, Nagpur Bench, which was heard and decided on 17/03/2022.

Acts & Sections

  • National Coal Wage Agreement-VI (NCWA-VI): Clause 9.4.0
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Dismisses Revision Applications Challenging Cognizance and Issuance of Process in CBI Corruption Case — Sanction Not Required for Private Persons Under Prevention of Corruption Act, 1988.
Related Judgement
High Court Bombay High Court Allows Writ Petition of Ex-Employee of WCL Challenging Reduction in Pay Scale Due to Medical Disability. Reduction from Category-IV to Category-I without considering alternative employment in same pay scale violates Clause 9.4.0 of ...