Case Note & Summary
The case involves appeals by Bihar State Beverages Corporation Ltd. against a Division Bench judgment of the Patna High Court that allowed writ petitions of employees on deputation/contract, directing the Corporation to grant them pay scales as per the 6th Pay Revision Committee. The Corporation was incorporated in 2006 as a government company to improve excise revenue. It did not make direct recruitments but engaged employees on deputation/contract from other boards/corporations and retired employees. The advertisement for appointments prescribed pay scales as per the 5th Pay Revision. In 2010, the Board resolved to grant revised pay scales, but the Finance Department objected, advising that only regular employees of the Corporation should get the benefit. Consequently, the Board passed a resolution on 27.3.2012, stating that deputation employees would be paid the pay scale of their parent organization plus deputation allowance. The writ petitioners, who were on deputation from various organizations, challenged this resolution and sought 6th Pay Revision benefits. The Single Judge dismissed the petitions, noting disparity but granting liberty to file representations. The Division Bench allowed the appeals, quashing the resolution and directing the Corporation to follow the principle of equal pay for equal work and pay 6th Pay Revision scales. The Supreme Court allowed the Corporation's appeals, holding that the Division Bench erred. The Court observed that the deputation employees were not comparable to regular employees of the Corporation or State Government, as they retained liens with their parent organizations, which had not implemented the 6th Pay Revision. The principle of equal pay for equal work requires complete identity between groups, which was absent. The resolution dated 27.3.2012 was not discriminatory and was in line with Rules 282 and 283 of the Bihar Service Code. The Court set aside the Division Bench's judgment and restored the Single Judge's order, with liberty to the employees to make representations.
Headnote
A) Service Law - Deputation - Pay Revision - Equal Pay for Equal Work - Bihar Service Code, Rules 282, 283 - The issue was whether employees on deputation/contract with Bihar State Beverages Corporation Ltd. are entitled to 6th Pay Revision benefits. The Supreme Court held that the Division Bench erred in applying the principle of equal pay for equal work as the deputation employees were not comparable to regular employees of the Corporation or State Government. The resolution dated 27.3.2012, which provided pay scales as per parent organization, was not discriminatory. (Paras 1-10) B) Service Law - Deputation - Pay Parity - Articles 14, 16 of Constitution of India - The Court held that there was no violation of Articles 14 and 16 as the deputation employees belonged to different parent organizations with different pay scales, and the Corporation had no permanent employees of its own. The principle of equal pay for equal work requires complete and wholesale identity between groups, which was absent. (Paras 5-10)
Issue of Consideration
Whether employees working on deputation/contract basis with the Corporation are entitled to the pay scale as per the 6th Pay Revision Committee, and whether the resolution dated 27.3.2012 denying such benefit is discriminatory.
Final Decision
The Supreme Court allowed the appeals, set aside the Division Bench judgment, and restored the Single Judge's order dismissing the writ petitions. The Court held that the deputation employees are not entitled to 6th Pay Revision benefits as they are not comparable to regular employees, and the resolution dated 27.3.2012 is not discriminatory. The employees are at liberty to make representations to the Corporation.
Law Points
- Equal pay for equal work
- Deputation employees
- Pay revision
- Bihar Service Code Rules 282 and 283
- Articles 14 and 16 of Constitution of India
