The Punjab and Haryana High Court has strongly criticized the Punjab State Power Corporation Limited (PSPCL) for adopting contradictory legal positions regarding its administrative autonomy. The court warned that any future deviation from the stand taken before it would be treated as contempt of court.
Case Background
The court was hearing a petition filed by junior engineers Gagandeep Singh and others in Patiala. The petitioners alleged that PSPCL selectively invoked its autonomous status to avoid beneficial government directives while simultaneously seeking state approval when it came to extending financial benefits to its employees. The court termed this practice "worryingly inconsistent" and unbecoming of a state instrumentality.
Petitioners' Allegations
The petitioners, working as junior engineers (sub-station/electrical), claimed that they were paid less than their juniors. They attributed this anomaly to PSPCL's failure to uniformly apply Finance Circular No. 3/2024. Placed in the Sixth Pay Commission with a basic pay of Rs 43,800 after completing probation, they did not receive the 15% increase granted to more recently appointed colleagues. The lead petitioner stated that he currently draws Rs 45,100 per month, while employees junior to him reportedly receive between Rs 52,300 and Rs 53,900.
Court's Directive
The court directed the managing director of PSPCL to personally examine the applicable rules and submit an affidavit before the next hearing. The affidavit must unambiguously clarify whether the corporation considers itself bound by Punjab government instructions or operates as a fully autonomous body empowered to take independent decisions. The court emphasized that the position stated in the affidavit would be binding on PSPCL in perpetuity. The next hearing is scheduled for May 15.
Reminder of Obligations
Invoking PSPCL's status as a public sector undertaking, the court reminded the corporation of its obligation to function as a model employer, held to higher standards of fairness and institutional accountability.
Broader Context
The court's observations came amid mounting frustration within the power sector. The Power Sector Joint Action Committee (PS-JAC), a coalition comprising the PSEB Engineers' Association, the Council of Junior Engineers, the Pensioners' Association, and several officer welfare bodies, recently raised a series of overlapping grievances. The committee contended that PSPCL's claims of financial hardship, cited in court to resist employee demands, sat uneasily alongside management projections of a Rs 7,800-crore profit. It also opposed the corporation's challenge to the release of Dearness Allowance and Dearness Relief, arguing that these were statutory entitlements that PSPCL previously committed to provide in line with Punjab government norms. The PS-JAC further alleged that the corporation selectively used the Punjab State Electricity Regulatory Commission (PSERC) framework as a pretext to withhold legitimate dues.
