Punjab-Haryana High Court
Safai Sewak Union vs State Of Punjab & Others on 3 April, 2013
Author: Rakesh Kumar Garg
Bench: Rakesh Kumar Garg
CWP No.5943 of 2012 (O&M) 1
IN THE HIGH COURT OF PUNJAB AND HARYANA
AT CHANDIGARH
CWP No.5943 of 2012 (O&M)
Date of decision:03.04.2013
Safai Sewak Union ....Petitioner
Versus
State of Punjab & others ....Respondents
CWP No.1790 of 2013 (O&M)
Satpal ....Petitioner
versus
State of Punjab and others ....Respondents
CWP No.11784 of 2012 (O&M)
Das Ram & others ...Petitioners.
Versus
State of Punjab & others ...Respondents
CWP No.20200 of 2012 (O&M)
Sher Singh and others ....Petitioners
versus
State of Punjab and others ...Respondents
CWP No.3374 of 2012 (O&M)
Retired Municipal Workers Fed. ....Petitioners.
Versus
State of Punjab and others ....Respondents
CWP No.6287 of 2012 (O&M)
Municipal Employees Union ....Petitioner
Versus
State of Punjab and others ....Respondents
CWP No.5943 of 2012 (O&M) 2
CORAM:- HON'BLE MR. JUSTICE RAKESH KUMAR GARG
1. Whether reporters of local newspapers may be allowed to
see judgment?
2. To be referred to reporters or not?
3. Whether the judgment should be reported in the Digest?
Present:- Mr. Balwinder Singh, Advocate
for Mr. Deepak Agnihotri, Advocate
for the petitioner in CWP Nos.5943 and 20200 of 2012.
Mr. Sushil Saini, Advocate
for the petitioner in CWP No.6287 of 2012.
Mr. B.S.Walia, Addl.A.G.Punjab and
Mr. Anil Kumar Sharma, Addl.A.G.Punjab.
Mr. H.K.Aurora, Advocate
for respondent No.2 in CWP No.1790 of 2013.
Mr. Sandeep Khunger, Advocate
for respondent No.2 and 3 in
CWP Nos.5943 and 20200 of 2012.
Mr. Ashish Yadav, Advocate
for respondent Nos.2 and 3
in CWP No 11784 of 2012.
RAKESH KUMAR GARG, J (ORAL)
The petitioners before this Court in all these petitions are working in various Municipal Councils in the State of Punjab. Admittedly, the salaries of many of the employees working in such Municipal Councils are not being paid on account of insufficiency of funds. Not only this, even the Provident Fund deducted from the salaries of the petitioners has not been deposited till date by these Municipal Councils in the account of such employees as per the rules and has been diverted towards payments of salaries or other expenses. Similarly, even the matching share to be deposited CWP No.5943 of 2012 (O&M) 3 towards pension fund by these Municipal Councils is not being deposited. Not only this, in some of the cases, even after retirement, the retiral benefits of such petitioners are not being released on the ground that these Municipal Councils are not having sufficient funds.
Thus, the petitioners in all these writ petitions had approached this Court seeking a direction to the respondents to release the aforesaid dues.
Keeping in view the various stand taken by the parties, this Court passed the following order on 24.01.2013:-
"The petitioner before this Court is a Union of Safai Sewaks working in Municipal Council, Mansa. Admittedly, Provident Fund Account of these employees is not being maintained properly and Municipal Council, Mansa is not depositing the deducted amount of the share of employees in their accounts regularly rather the same is being diverted for making the payment of the salaries of other employees.
Let a show cause notice be issued to the State of Punjab for 7.2.2013 as to why such a Municipal Council, who cannot even pay the salaries of its employees, should not be disbanded as the Municipal Council is not in a position to play any meaningful role as envisaged under the Constitution of India, except to be a burden on the residents of the locality.
In the meantime, no amount shall be released from any of the accounts of the Municipal Council, Mansa, except the salary bills of employees till the Provident Fund Account of the Employee's of Mansa Municipal Council is made regular. However, it is made clear that salary of the Executive Officer shall remain stayed till further orders.CWP No.5943 of 2012 (O&M) 4
A show cause notice be also issued to the Municipal Council, Mansa, through its Executive Officer and the President, as to why an appropriate criminal proceedings be not initiated against them for not depositing the deducted amount of provident fund from the salaries of the employees and diverting the same for other usage."
At this stage, the order dated 07.02.2013 may also be noticed:-
The petitioners before this Court in all these petitions are working in various Municipal Councils in the State of Punjab. Admittedly, the salaries of many of the employees working in such Municipal Councils are not being paid on account of insufficiency of funds. Not only this, even the Provident Fund deducted from the salaries of the petitioners has not been deposited till date by these Municipal Councils in the account of such employees as per the rules and has been diverted towards payments of salaries or other expenses. Similarly, even the matching share to be deposited towards pension fund by these Municipal Councils is not being deposited. Not only this, in some of the cases, even after retirement, the retiral benefits of such petitioners are not being released on the ground that these Municipal Councils are not having sufficient funds.
In the affidavit filed on behalf of the Executive Officer, Municipal Council, Mansa, it has been admitted that after June, 2008, the Provident Fund Account of the employees has not been settled and out of total 55 installments, only 13 installments were paid on different dates and now a sum of Rs.29,82,289/- pertaining to 8 installments have been deposited on 5.2.2013 and remaining amount of Rs.1,27,80,000/- is yet to be deposited and even CWP No.5943 of 2012 (O&M) 5 the arrears of Provident Fund amounting to Rs.44.16 lac have become due on account of revision of pay scale which has taken place on 1.1.2006 and another liability of Rs.60.28 lac towards additional Dearness Allowance is yet to be paid. It has been admitted in this affidavit that the total salary of the employees of Municipal Councils is almost equal to the total income of the Municipal Councils and in fact no development work can be taken. In the reply, it has been further stated that the Municipal Council is liable to pay with regard to committed expenditure i.e. Maintenance of Water Supply and Sewerage, Electricity Bills and Maintenance of Fire Brigade etc. At this stage, it may be noticed that in the reply filed on behalf of the Municipal Council, Mansa, it has been stated that the counsel is proposing to sell the property of Municipal Council, Mansa, to meet the liability. Even in the reply filed on behalf of the State of Punjab, it has been admitted that such Municipal Councils are unable to pay even towards committed liabilities and the salaries/Provident Fund/Retiral Benefits of the employees because of the fact that expenditure of such Municipal Councils is much higher than the income earned by these Municipal Councils.
Reply by way of affidavit of Mr. Priyank Bharti, Director, Local Government, Punjab, has been filed in Court and the same is taken on record.
Though it has been stated that the State has amended the Pension Rules and additional measures are being taken for timely payment of committed liabilities including payment of salary and pensionary benefits yet no answer is coming to the question posed i.e. What is the rationale of continuation of such Municipal Councils in case the said Municipal Councils have failed in achieving the goal as envisaged under the Constitution of India and instead have become a CWP No.5943 of 2012 (O&M) 6 liability for the State as well as the residents of such Municipal Councils who are paying heavy taxes such as property tax, house tax etc. Even this Court has also not found any rationale behind selling the properties of such Municipal Councils/State without fixing any guidelines.
In these circumstances, the Municipal Councils in the State of Punjab as well as the State of Punjab is restrained from selling its any of the properties without permission of this Court till further orders.
List on 12.3.2013.
A copy of this order be placed on the files of other connected cases."
At the outset, all the learned counsel representing the petitioners stated before this Court that all the claims of the petitioners with regard to their dues such as salaries etc. have already been satisfied and now only dispute remains with regard to deposit of Provident Fund/Pension contribution, which is to be deposited by the respondent-Municipal Councils.
At this stage, Sh. B.S.Walia, Additional Advocate General, Punjab, on instructions from Sh.Priyank Bharti, Director, Local Bodies, Punjab states that cheques with regard to the claim of petitioners' provident fund/pension contribution etc. which are to be deposited in their respective accounts have been prepared and shall be deposited in their accounts upto 5th April, 2013 positively.
This satisfies counsel for the petitioners and they have no objection, if these writ petitions are disposed of having been rendered infructuous.
Ordered accordingly.CWP No.5943 of 2012 (O&M) 7
Needless to say, interim order if any, also stands vacated in these petitions.
It may be also relevant to observe the question as raised by this Court in the order dated 24.01.2013 and 07.02.2013 with regard to justification of continuation of such Municipal Councils which are not in a position to play any meaningful role as envisaged under the Constitution of India on account of financial constraints and selling of Govt./Municipal properties without fixing any guidelines are left open and may be decided in any other appropriate case subsequently.
It is also clarified that if some proceedings for violation of Provident Fund Scheme have been initiated or are to be initiated by a Competent Authority, this order shall not be a bar for initiation/continuation of such proceedings, if any.
April 03, 2013 (RAKESH KUMAR GARG) savita JUDGE