The Bombay High Court (Nagpur Bench) ruled that the question of equal pay for equal work and pay disparity will have to be tested, based on a classification criterion for better administration. As there is nothing on record that the employees of the other Central Public Sector Enterprises (CPSEs), of which Manganese Ore (India) Limited (MOIL) is one, perform similar work, discharge similar responsibilities and have similar qualifications, the decision taken by MOIL justifying a distinct pay structure to ensure administrative efficiency, cannot be faulted with.
The Court clarified that comparison with CMD and Directors who are in contractual employment and selected on a pre-decided pay scale with the approval of the Appointment Committee of Cabinet (ACC), is a question of equality amongst equals, and these two classes cannot be said to be equal.
The Division Bench comprising Justice Rajnish R. Vyas and Justice Anil S. Kilor observed that while the “genus” of CPSEs is the same, the “species are different”. The factors like the nature of the organisation, manpower cost, profitability, and employee welfare packages are different across these entities, making a direct comparison for pay parity inappropriate.
The Bench relied on the financial data presented in the 353rd Board Meeting and concluded that MOIL had not acted arbitrarily or in a discriminatory manner. The decision-making was based on relevant data, and it is the employer’s prerogative to frame its policies. As far as the distinction between employee classes is concerned, the Bench concluded that Board Level Directors and below-board-level employees cannot be placed in the same class for comparison, and the principle of equality applies only amongst equals.
Briefly, the petition was filed by the employees of Manganese Ore (India) Limited (MOIL), a Central Public Sector Enterprise (CPSE), seeking pay parity with other CPSEs under the Ministry of Steel, such as SAIL, KIOCL, and NMDC. The core issue relates to the grant of pay parity, alleging that the existing pay anomaly amounts to discrimination under Article 14 of the Constitution. Additionally, the petitioners sought directions to remove the anomaly in their pay scales (Grade E0 to E-9) and requested the setting aside of the Minutes of the 353rd Meeting of the Board of Directors of MOIL.
The petitioners argued that despite MOIL being a Schedule ‘A’ company, its employees were discriminated against concerning pay scales compared to other Schedule ‘A’ companies under the Ministry of Steel. While the pay scales of Board Level Employees (CMD and Functional Directors) were upgraded and brought at par with other CPSUs upon MOIL’s upgradation to Schedule ‘A’ status, the pay scales for below-board level employees were not similarly upgraded.
Appearances:
Senior Advocate Mohan Sudame and Advocate A.M. Sudame, for the Petitioners
Senior Advocate A.S. Mardikar, along with Advocates S.S. Ghate and K.A. Patil, for the Respondents
