Human Rights Day - Let's press for our fundamental right to our arrears' payment!

           History has a way of making its presence felt! Whoever has ignored History (read the past blunders of humanity) has had to bite dust! 

          Those who don't learn their lessons from mistakes committed in the past, continue to make the same mistakes, ad nauseum; and invite the wrath of Mother Nature! The ultimate leveler!

          L.I.C of India's insistence on including the vexed and unconstitutional Clause 3 1 B or ii) in the Wage revision Charter, twice after the Supreme Court's judgment declaring it to be ultra vires, is a case in point.

          The Corporation, a huge public sector undertaking doesn't bat an eyelid while trampling upon the human rights of its resigning ex-employees who had worked for long years sincerely and contributed towards its success and glory.

          In response to my Second RTI Appeal, it admitted that its decision to repudiate the arrears was arbitrary. "There is  no reason on record to repudiate arrears". To say that I was stunned would be an understatement!

          How dare a premier organization of L.I.C of India's stature, arbitrarily take such a huge decision that unjustly and illegally deprives its ex-employees of their legally rightful dues?

          Please note the salient points from the Supreme Court's judgment in 2007 as follows:

          The petitioner has a constitutional right to get his pay including the revision in the pay scale and it is settled by law that the fundamental rights can neither be waived off nor bartered away.

          It has come in the supplementary affidavit filed on behalf of respondent No. 2 that the wage revision of the employees of the nationalized insurance companies follows a periodicity of five years, i.e. 1^st August 1987, 1^st August 1992, 1^st August 1997 and 1^st August 2002. Thus, it is evident that in normal circumstances wage revision should have taken place in the year 2002 instead of 2005.

          Classification made by the employer on the basis of seeking premature retirement on the basis of two sets of retirement schemes is not sustainable being irrational and discriminatory.

          The object sought to be achieved by the issuance of the Notification dated 21^st December 2005 was to give the revised pay scales which were due in 2002. In fact, this has been done by giving retrospective effect vide Notification dated 21^st December 2005. It is, thus, held that classification created on the basis of insertion of sub-clauses (a) and (b) in second proviso of Para 3 is violative of Articles 14 and 16 of the Constitution of India.

         The respondent No.2 being the “State” within the meaning of Article 12 of the Constitution of India its actions are subject to the constitutional limits and the same are to be judged in the light of the fundamental rights granted by Part-III of the Constitution. The action of an instrumentality or the agency of the State must be in conformity with Article 14 of the Constitution. The option given by the petitioner cannot bind him as it is violative of Article 14 of the Constitution of India and it also runs against the public policy. The action of the respondents is not supported by any rational basis or intelligible differentia.

The ratio of the judgment of (2006) 3 SCC 708 cited by Mr. Ashwani Sharma is not applicable to the facts of the present case for the simple reason that in the present case the petitioner was in fact in employment as on 1^st August 2002, the date from which the Notification (Annexure P-4) dated 21^st December 2005 has been made applicable.

Consequently, in view of the observations made above, send proviso of Para 3 of the Notification dated 21^st December 2005 is struck sown being ultra vires to the extent it deprives the petitioner and other similarly situated persons to get the benefit of revised pay scale with effect from 1^st August 2002 after applying the principle of severability.

According, the petition is allowed. The petitioner is held entitled to get the revised pay scale corresponding to his post he was occupying as on 1^st August 2002 till 15^th March 2004. The respondents are directed to work out the arrears etc. within six weeks from today.

December 3, 2007                                                                                      (Rajiv Sharma), J.

(Source: Supreme Court and High Court judgments relating to Insurance.)

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  Thus wage revision arrears' payments with accrued interest (compounding) as per nationalized bank rates, as on actual date of payment, must be made immediately to all the affected resigning ex-employees, by all the nationalized insurance companies!

    The corresponding difference in Statutory Retirement Benefits like Provident Fund, Gratuity, etc. must also be paid simultaneously.

  We hope the Government of India is listening and will take prompt and appropriate action.

    Let's together rewrite History!