Share

Bombay HC tells Maharashtra State Financial Corporation to implement revised pay scale

AAMIR KHAN

The Bombay High Court recently rejected the state government’s decision to not extend the benefit of the Sixth Pay Commission to employees of the Maharashtra State Financial Corporation.

A division bench of Justice V M Kanade and Justice M S Sonak acted on a petition filed by a workers’ union, which argued that though the corporation had passed a resolution approving the revised pay scale, the decision had remained on paper.

The state government told the court that the corporation, which offers financial services and is in the business of offering loans, suffered losses to the tune of Rs 570.92 crore. The state government had extended financial assistance of Rs 136.49 crore to the corporation in various forms. The corporation has also stopped granting loans since 2005-2006, the bench was informed.

The financial corporation, on the other hand, told the court that its board of directors passed a resolution to give revised salaries under the Sixth Pay Commission. However, approval for the revision was pending with the government, it said.

The lawyers appearing for the petitioner, Bhartiya Kamgar Karmachari Mahasangh, contended that the approval of the state government is not necessary since the the corporation is an autonomous body. The petitioner further submitted that under Section 23 of the State Financial Corporations Act, the corporation has the power to lay down the service conditions of its employees, including pay scales and remuneration.

The lawyers also argued that Section 23 of the Act was amended with effect from 2000 and the clause, which stated that the government in consultation of the Reserve Bank, would decide the question of remuneration, was omitted.

The bench in its ruling said, “It is no longer necessary to obtain prior approval of the state government.”

The court pointed out that as the financial corporation is an autonomous body, it has the power to determine the conditions of appointment and services as also the remuneration which is payable to its employees.

… contd.




ALSO READ

BMC is yet to  provide seperate dry-waste collection vehicles to the housing colonies.Despite notices to housing societies, BMC yet to provide waste collection vehiclesCamaraderie dominated the spirit at the party to announce the nominations for 20th Screen Awards.Screen Awards 2014: The stage is setMarathi actress Alka Punewar staged accident to elope with boyfriendMumbai University clears bifurcation


Please read our terms of use before posting comments

TERMS OF USE: The views, opinions and comments posted are your, and are not endorsed by this website. You shall be solely responsible for the comment posted here. The website reserves the right to delete, reject, or otherwise remove any views, opinions and comments posted or part thereof. You shall ensure that the comment is not inflammatory, abusive, derogatory, defamatory /or obscene, or contain pornographic matter and/or does not constitute hate mail, or violate privacy of any person (s) or breach confidentiality or otherwise is illegal, immoral or contrary to public policy. Nor should it contain anything infringing copyright /or intellectual property rights of any person(s).

Loading...

Best Wordpress Plugin development company in India     Best Web development company in India