N.N.TIWARI, J. - (1.) IN this writ petition, the petitioner has prayed for a direction on the respondents to make payment of Dearness Allowance (D.A. for short) commencing from 1.1.1999 onwards to each and every members of the petitioners union at par with the rate of the D.A. paid to the employees of the Central Government being 55% of the basic pay: and for holding the letter dated 22/23.9.1999 as unconstitutional, arbitrary and discriminatory.
(2.) IT has been stated that the petitioners members are entitled to get D.A. @ 55% of basic pay as per the revised D.A. admissible to the employees of the Central Government and other Public Sector Undertakings. By letter dated 22/23.9.1999, issued under the signature of the Under Secretary, Ministry of Steel and Mines, Government of India, New Delhi addressed to the Chairman -cum - Managing Director, Hindustan Steel Works Construction Ltd., it has been arbitrarily directed that the D.A. instalments announced by the Government and not paid till 31.3.1999 shall not be paid to the employees, till the company makes cash profits and becomes financially sound to make such payment. The grievance of the petitioner is that since the D.A. is a part of the salary and the same has been revised and is being paid to the employees of the Central Government and other Public Sector Undertakings depriving the members of the said benefit is arbitrary and discriminatory and the said letter dated 22/23.9.1999 is illegal. A counter affidavit has been filed on behalf of respondent Nos. 1 and 2 contesting this writ petition. It has been stated, inter alia, that the respondent -Company is solely dependant upon the orders from Steel Authority of India (Ltd.) (SAIL). Due to acute shortage of orders from the Steel Plants, the cash flow in the revenue of the Company has excessively decreased. Due to financial crunch, even the salaries and wages could not be paid to 11,000 employees (executives, non -executives and other workers) all over India and the amounts could not be deposited in the provident fund. In view of drastic fall in revenue earning of the Company, austerity measures have been taken suspending the facilities like LTC, LLTC, Leave Encashment, reduction of Travel expenses on official tour, payment of TA/DA in revised rates etc. All the employees are struggling for revival and the Government has already approved conversion of plan loans, grant of moratorium on repayment and interest holiday, waiver of interest besides other measures for financial re -structuring. The Government of India for financial re -structuring and providing financial assistance package have imposed further austerity measures including payment of revised D.A. till the Company achieves cash profit and is able to make the payment the increased D.A. out of its cash profits. It has been stated that the Company has been facing hard time and shortage of funds and is unable to pay the legitimate dues to its employees.
(3.) MR . Ughal, learned Counsel appearing on behalf of the petitioner submitted that the Company has no dearth of fund and is financially capable to pay the revised D.A. and other legitimate dues to its employees, but the revised D.A. is not being paid in view of the impugned letter of the Central Government.;