The Punjab and Haryana High Court has strongly reprimanded the Haryana State Federation of Consumer Co-operative Wholesale Stores Ltd (Confed), ordering it to pay the salary arrears of seven years to a former employee along with 6% interest within three months. The court also imposed a fine of Rs 2 lakh on the state-run federation for violating the employee's fundamental rights.
Court's Observations on Conduct of Confed
Justice Harpreet Singh Brar, heading the bench, termed the conduct of Confed as "wholly unacceptable." The court noted that a public authority subjected its employee, Duni Chand, to indignity by forcing him to litigate for decades to secure his rightful dues. The case involved a writ petition seeking payment of unpaid salary from October 1989 to July 1996.
Background of the Case
Duni Chand was appointed as a salesman in 1979 and posted at Central Cooperative Stores, Mandi Dabwali, in 1983. He claimed that he was denied wages from October 1989 and eventually relieved without a formal termination order. The court held that non-payment of wages amounted to "forced labour" under Article 23 and violated the right to life under Article 21 of the Constitution. It emphasized that denying salary for 81 months constituted a gross infringement of constitutional protections.
Criticism of Confed's Defense
The court strongly criticized Confed, stating that the state cannot exploit employees or hide behind technicalities to deny lawful wages. It quashed a 2010 communication rejecting the petitioner's claim, calling it illegal and arbitrary. Confed had argued that Duni Chand was not its employee but employed by the Central Cooperative Stores, Mandi Dabwali, and that the store alone held the liability. According to Confed, since the store had gone into liquidation and was wound up without any realisable assets, the petitioner's claim could not be enforced and must be treated as an unpaid liability.
Non-Compliance with Earlier Orders
The bench also highlighted repeated non-compliance with earlier court orders in 1992 and subsequent proceedings, which forced the petitioner into prolonged litigation. The court directed Confed to release the arrears with interest and pay the fine within three months.
