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By Hon'ble Sh. Khushiram, Member(A):-

As the similar facts and common law point is involved in all the above three OAs, all the above three OAs with the consent of the parties are being disposed of through a common judgement. For the purpose of convenience, we are taking facts as enumerated in OA No. 310/PB/2008.

2. Applicants in this OA are the erstwhile employees of the Semi Conductor Laboratory (SCL) Co. Ltd. who were drawing salaries on IDA pattern. On conversion of the SCL from an Undertaking to autonomous society where pay scales and other service conditions at par with an Office of the Central Government, they were to be granted equivalent Government (CDA)scales on the Central pattern. However, applicants alleged that scales granted to them were not as per their entitlement and thus, not permissible under the law/rule on the scheme. The applicants filed representations seeking fixation of proper CDA pay scales and have prayed for grant of the same, but, their requests were rejected on 12.7.2007. Thereafter, the applicant filed more representations for redressal of their grievances and also requested for a meeting with the Department of Space authorities as a result of which, meeting with the Director, Department of Space took place at Bangalore on 24.3.2008 wherein detailed representation was submitted seeking various benefits including fixation of their basic pay on the pattern of DOS/ISRO employees, i.e. on Central pattern. The representation filed by the applicant was rejected on 15.5.2008 with the threat that if the applicants are not satisfied, the benefits already granted to them could be withdrawn. The applicants urged that pressure tactics are being adopted by the authorities to silence them. The applicants have impugned the orders at Annexures A-1, A-2, A-3 & A-4 and have sought the following reliefs:-

(i) Quash the Memorandum dated 16.6.2002, Annexure A-1 to the extent pay Grade for category of applicants i.e. Technicians who were in the pay scales of Rs. 3660-6810; Rs. 3830-7110; Rs. 4020-7435; Rs. 4200-7630 and Rs. 4400-8120 equivalent scale of which in scales in Central Pattern is Rs. 3050-4590; Rs. 4000-6000; Rs. 4500-7000; Rs. 5000-8000; Rs. 5500-9000 respectively to which applicants are entitled to, but they have been placed in the pay scales of Rs. 2750-4400; Rs. 3050-4590; Rs. 3200-4900; Rs. 4000-6000 and Rs. 4500-7000 respectively and also to the extent their service before restructuring of SCL Company into SCL Society has been taken @ 60% instead of 100% for the purpose of increments, which is illegal, arbitrary, harsh, void ab initio, discriminatory, violative of Articles 14 and 16 of the Constitution of India and cannot be sustained in the eyes of law, as the applicants are entitled to the same pay scales, as is available to the corresponding categories of employees in the Department of Space and ISRO, as was required to be done in view of the fact that terms and conditions applicable to existing employees of SCL for pay scale, was Central Government Scales, as sanctioned/modified from time to time, which, for the post held by the applicants per qualification and experience, including in Department of Space and ISRO.

3. The respondents have contested the claim of the applicant by filing a detailed written statement stating that erstwhile SCL Company had accumulated losses of Rs. 132.39 crores as on 31.3.2005 which was more than 50% of its net worth, thus, making the Company a potentially sick unit. However, Government of India, taking into account the activities relating to microelectronics and the interests of the employees decided against disinvestment or sale of SCL Company. The Department of Space (DOS) restructured SCL Company into Society, namely, Semi-Conductor Laboratory Society (SCL Society) registered under the Society Registration Act, 1860 on 8.11.2005 (Annexure R-2). The Society became operational on 1.9.2006. All the Centre/Units of Indian Space Research Organisation (ISRO) under DOS including autonomous bodies (Societies) under its administrative control are having the scales of pay as under Central Dearness Allowance (CDA) pattern. In order to have uniformity in the pay scales of all employees of DOS and to have a synergy between the SCL Society and the DOS/ISRO and consequential mobility of personnel between the SCL Society and ISRO on programmatic considerations, the scales under CDA pattern were offered to the employees of Semi-Conductor Complex Limited (SCL Co.) on its restructuring as a Society, namely, Semi Conductor Laboratory (SCL). While migrating the employees of SCL Company to SCL Society, the scales of pay held by them under Industrial Dearness Allowance (IDA) pattern as on 1.9.2006 were taken into account for fixation of their pay under CDA pattern. The service rendered without any break on a regular basis by the eligible employees in the erstwhile SCL Company prior to 1.9.2006 was taken into consideration for promotion on CDA scales. Memorandum dated 16.6.2006, Annexure R-3 was issued to each and every employee of HCL Company and were given opportunity to elect either IDA or CDA pattern and after going through the benefits and concessions, pay fixation formula given in Annexure A-1 and matching of pay scales given in Annexure 1-A1 on the memorandum, all the 205 applicants, consciously and voluntarily opted for CDA pattern of pay scales. The employees were placed in the mapped pay scales of CDA pattern. Since some of the scales that existed in HCL Company, do not exist in DOS, they were given to some of the employees of SCL as scales specific to SCL based on the mapping of IDA to CDA scales and in order not to adversely effect the employee concerned otherwise such employees would have been given the lower scales and appropriate designation and the difference in the scale would have been treated as personal pay to be absorbed in future increments. To avoid this, the SCL specific designations and scales of pay were given to them.

4. The respondents further averred that treating of the employees w.e.f. 1.9.2006, employees of DOS/ISRO and not SCL Company from their original date of joining the SCL Company is legally impossible since SCL Society is a new entity and it did not exist on that date. Legally, SCL Company has come to an end and liquidation process is complete. The comparison made by the applicants with DOS/ISRO pay scales is totally wrong as the applicants did not possess the requisite qualifications as per the DOS norms, i.e. ITI first class at the time of their initial appointment in the SCL Company. The elements of pay like basic pay, dearness pay and DA under IDA & CDA patterns has been protected (S.No.8 of A3 of Annexure R-4). The drop, if any, therein has been made good by grant of additional increments from 1.9.2006. The services rendered in IDA Scale of pay before 1.9.2006 has been considered for promotion in CDA scales of pay in respect of all the eligible applicants in the Society after 1.9.2006 (Annexure R-5). Had this not been done, they would not have been promoted from 1.9.2006 as they did not complete minimum residency of three years if counted from 1.9.2006. The employees were getting IDA scales upto 31.8.2006. Even the dates of their increments were not changed under the SCL Society. The respondents have stated that the applicants are mixing two issues i.e. induction level progression and fixation of pay in SCL Society.