Delhi High Court
Mr. Subrat Basak & Ors vs Rashtriya Pariyojna Nirman Nigam ... on 8 April, 2013
Author: Valmiki J. Mehta
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) No. 5111/1993
% 8th April, 2013
MR. SUBRAT BASAK & ORS ...... Petitioners
Through: Petitioner no.1 in person.
VERSUS
RASHTRIYA PARIYOJNA NIRMAN NIGAM LTD. .... Respondent
Through: Mr. Paritosh Budhiraja, Mr. Fanish K. Jain
and Mr. Vikas B.Pakhiddey, Advocates.
CORAM:
HON'BLE MR. JUSTICE VALMIKI J.MEHTA
To be referred to the Reporter or not?
VALMIKI J. MEHTA, J (ORAL)
1. This writ petition is filed by four petitioners who were employees of the
respondent. The respondent is today called National Projects Construction
Corporation Limited (NPCC), and earlier for some point of time the respondent
was called Rashtriya Pariyojna Nirman Nigam Limited, the description given to
the respondent in the writ petition. The relief claimed in the writ petition is by the
four petitioners, who were sent for work by the respondent to Iraq, and the
petitioners claim for the period to which they were posted in Iraq (1986 to 1991),
since it was directed by the respondent that the enhanced salaries would be paid in
terms of the IVth Pay Commission Report, the enhanced salaries must be paid to
W.P.(C) 5111/1993 Page 1
the petitioners in Iraqi Dinars. Though there is no specific prayer for claiming
Iraqi Dinars, the case argued by the petitioner No.1 in person and also on behalf of
all the petitioners, seeks the release of entire arrears of payment in Iraqi Dinars
along with interest.
2. It could not be disputed on behalf of the respondent that in terms of the
office orders dated 24.4.1991 (qua petitioner No.1), 20.7.1990 (qua petitioner
No.2), 16.8.1990 (qua petitioner No.3) and 20.12.1990 (qua petitioner No.4) these
four petitioners will be entitled to revision of pay scales w.e.f the date as stated in
these orders, i.e 1.1.1986.
3. Learned counsel appearing for the respondent could not dispute that the
petitioner had to be paid the revised pay in terms of the aforesaid orders dated
24.4.1991, 20.7.1990, 16.8.1990 and 20.12.1990, however, it is urged that the
petitioners cannot claim that the arrears should be paid in Iraqi Dinars. Counsel
appearing for the respondent refers to the contracts and relevant rules governing
persons such as the petitioners who were posted in Iraq, and which contracts and
rules do not provide for any entitlement of the employees such as the petitioners to
receive their pay in foreign currency, whether in Iraqi Dinars or US Dollars. It is
argued that merely because for the sake of convenience respondent made payment
of salaries in part to these petitioners in Iraqi Dinars during the period they were
W.P.(C) 5111/1993 Page 2
posted in Iraq, and which was done to take care of their expenses in Iraq, cannot
give legal entitlement of the payment of salary in Iraqi Dinars inasmuch as such a
right can only exist in favour of the petitioners either if there is a contract to that
effect or the rules of the respondent or as per circulars which could have been
issued by the respondent, and none of the three positions of a contract or existence
of rules or existence of circulars for payments of Iraqi Dinars to the petitioners
exist.
4. A reference to the record shows that the petitioners could not point out that
as to how they were entitled to payment in foreign currency of Iraqi Dinars or US
Dollars. The only document relied upon by the petitioners is the letter dated
6.11.1982 of the respondent which refers to the conversion rate for repatriation of
salary/wages of persons such as the petitioners to India, however, this letter cannot
be read as a policy decision entitling payments of salary only in Iraqi Dinars. For
the sake of convenience, this letter dated 6.11.1982 is reproduced as hereunder:
" Ref. No.: 770518/1199
Dated : 6.11.1982
Shri S.K. Relan,
Director (Finance),
N.P.C.C. LIMITED,
30-31 - Raja House,
Nehru Place.
NEW DELHI. 110019
W.P.(C) 5111/1993 Page 3
INDIA.
Sub : Rate of Exchange for Iraqi Dinar.
The Iraqi Dinar had a fixed rate of exchange for
U.S.dollar viz US$ 3.377778 = 1 ID. The rate has now
been revised to U.S.$ 3.208889.
For purpose of repatriation of salary/wages we are
continuing to follow the previous rate of exchange viz.
U.S. $3.377778-1 ID as is being done by M/S E.P.I.. It
may be mentioned that the above rate is also stipulated in
our Agreements for Lot-4 and ARPS Units.
The above is submitted for your kind information.
Yours faithfully,
(Mahesh Chandra)
Manager (Finance)"
5. As already stated above, and which is the argument of the respondent, that
merely because the respondent corporation in order to facilitate its employees,
made part payments of their salary in Iraqi Dinars in Iraq, cannot mean that for all
times there is a legal obligation to make payment to employees such as the
petitioners in Iraqi Dinars, more so, with respect to revised pay scales which comes
into operation subsequently though with a retrospective effect because of
implementation of 4th Pay Commission Report which became applicable from July,
1990. Also it is argued that admittedly petitioners No.2 to 4 were not in Iraq on
the date when the 4th Pay Commission Report was implemented for the employees
W.P.(C) 5111/1993 Page 4
of the respondent. So far as the petitioner No.1 is concerned, the self-same
argument of lack of this entitlement of Iraqi Dinars is pressed on account of lack of
any contract or rules or circulars of respondent No.1.
6. In my opinion, no doubt, the writ petition would have to be allowed with
respect to arrears of salary which had to be paid to the petitioners in terms of the
office orders of the respondent dated 24.4.1991, 20.7.1990, 16.8.1990 and
20.12.1990, however, the arrears which would be paid to the petitioners will be in
Indian Rupees. Since salary is not a favour which is done to employees or a
bounty conferred, and petitioners have not received the arrears of salary of the
enhanced amounts, they should be paid the arrears by implementation of the 4th
Pay Commission Report alongwith interest as compensation for the delay in
payment. Petitioners, therefore, will also be entitled to interest @ 12% p.a. simple
with respect to the arrears payable to each of the petitioners, and this interest @
12% p.a. will be payable on the balance amount payable to the petitioners in terms
of the office orders dated 24.4.1991 (qua petitioner No.1) 20.7.1990 (qua petitioner
No.2), 16.8.1990 (qua petitioner No.3) and 20.12.1990 (qua petitioner No.4). It is
ordered that the entire arrears along with interest be paid to the petitioners within a
period of three months from today.
W.P.(C) 5111/1993 Page 5
7. Writ petition is allowed and disposed of accordingly, leaving the parties to
bear their own costs.
VALMIKI J. MEHTA, J
APRIL 08, 2013/sv
W.P.(C) 5111/1993 Page 6
