MANU/SC/0413/2021

True Court CopyTM English

IN THE SUPREME COURT OF INDIA

Civil Appeal Nos. 7427, 7429, 7430, 7431, 7432, 7433, 7434 and 7435 of 2011

Decided On: 09.07.2021

Appellants: Punjab State Co-operative Milk Producers Federation Ltd. and Ors. Vs. Respondent: Balbir Kumar Walia and Ors.

Hon'ble Judges/Coram:
Sanjay Kishan Kaul and Hemant Gupta

JUDGMENT

Hemant Gupta, J.

CIVIL APPEAL No. 7427 OF 2011. CIVIL APPEAL No. 7429 OF 2011. CIVIL APPEAL No. 7430 OF 2011. CIVIL APPEAL No. 7431 OF 2011. CIVIL APPEAL No. 7433 OF 2011 AND CIVIL APPEAL No. 7435 OF 2011

1. The present appeals are directed against an order passed by the Division Bench of the High Court of Punjab & Haryana at Chandigarh on 19.3.2009 whereby the writ petitions filed by the Respondents1 herein were allowed holding that the Punjab State Co-operative Milk Producers Federation Ltd.2 is a State within the meaning of Article 12 of the Constitution of India and that the employees are therefore entitled to pay scale equivalent to their counterparts in the State of Punjab from 1.1.1986, though the revised pay scale was allowed by the Federation w.e.f. 1.1.1994.

2. The milk producers in the State launched the setting up of Cooperative Societies at village level which are known as Primary Milk Producers Cooperative Societies. Such Primary Milk Producers Cooperative Societies are in turn members of The District Cooperative Milk Producers Union. These District Level Unions are ultimately the members of the Federation. The employees have claimed pay scale as revised by the Punjab Government Anomaly Committee w.e.f. 1.1.1986.

3. Before the High Court, an objection was raised by the Federation that since it is not a State within the meaning of Article 12 of the Constitution, therefore, the writ petitions were not maintainable. However, before this Court, Mr. Patwalia, learned Senior Counsel appearing for the Federation has submitted that the question whether the Federation is a State or not is not being raised in the present appeals. The main grievance of the Federation is regarding grant of revised pay scale w.e.f. 1.1.1986 though the Federation was suffering with acute financial stringency in those days and had therefore granted revised pay scales from 1.1.1994.

4. It is pointed out that The Registrar (Cooperative Societies) accorded approval for implementation of the report of the Third Pay Commission on 2.6.1989. The Federation granted revised pay scale and allowances w.e.f. 1.1.1986 as per the report of the Pay Commission. Thereafter, on 15.2.1990, the State Government revised pay scale of Veterinary Officers of the Animal Husbandry Department, Punjab Government from Rs. 850-1700 to Rs. 2200-4000 and that after eight years of service, the pay scale of Veterinary Officers would be Rs. 3000-4500 and after eighteen years of service, it would be Rs. 3700-5300 with effect from 1.1.1986 on the basis of report of an Anomaly Committee constituted to consider the grievances of the employees of the State. It is the said pay scale which was claimed by the filing of writ petitions before the High Court.

5. It was argued that the Federation was facing acute financial crisis inasmuch as the State had granted a loan of Rs. 8 (sic 12) crores on 9.5.1990 which th........