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Bharatheeyam Security Services PVT LTD vs. Bharat Sanchar Nigam LTD

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WP(C)/11279/2020HC KeralaGSTCNR KLHC01028994202029 July 2020Bench: HONOURABLE MR.JUSTICE N.NAGARESH10 pages

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE N.NAGARESH WEDNE AY, THE 29TH DAY OF JULY 2020 / 7TH SRAVANA, 1942 WP(C).No.11279 OF 2020(H) PETITIONER: BHARATHEEYAM SECURITY SERVICES PVT LTD., NO. 29, V.G.P RAJESH NAGAR, 1ST MAIN ROAD, NARAYANAPURAM, CHENNAI 600 110, REPRESENTED BY ITS OPERATIONS MANAGER, SRI SREEJU C, KUNJACHAN S/O. KUNJACHAN. BY ADV. SRI.T.K.ANANDA KRISHNAN RESPONDENTS: 1 BHARAT SANCHAR NIGAM LTD., REPRESENTED BY ITS CHIEF GENERAL MANAGER, OFFICE OF THE CHIEF GENERAL MANAGER, TELECOM, KERALA CIRCLE, THIRUVANANTHAPURAM.- 695001 2 THE CHAIRMAN CUM MANAGING DIRECTOR, CORPORATE OFFICE, 8TH FLOOR, BHARAT SANCHAR NIGAM LTD BHAVAN, NEW DELHI – 110 001 3 THE ASST. GENERAL MANAGER, (ADMINISTRATION), BHARAT SANCHAR NIGAM LTD., OFFICE OF THE GENERAL MANAGER, THIRUVALLA, PATHANAMTHITTA-689 101 4 E.S.I CORPORATION, SUB-REGIONAL OFFICE, PANCHDEEP BHAVAN, ASRAMAM, KOLLAM-691 002, REPRESENTED BY DEPUTY DIRECTOR. 5 E.P.F ORGANISATION, BHAVISHYANIDHI BHAVAN,

WP(C)Nos.11279 & 6505 of 2020 :2: PATTOM, THIRUVANANTHAPURAM-695 004, REPRESENTED BY EMPLOYEES PROVIDENT FUND OFFICER. 6 CHIEF LABOUR COMMISSIONER (CENTRAL), MINISTRY OF LABOUR AND EMPLOYMENT, GOVERNMENT OF INDIA, NEW DELHI-110 001 R1-3 BY ADV. SRI.SAJI VARGHESE R4 BY SRI.T.V.AJAYAKUMAR, SC, ESI CORPN. BY ADV. KUM.P.H.RIMJU R5 BY SMT. NITA N.S. R6 BY ADV. SHRI.P.VIJAYAKUMAR, ASG OF INDIA THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29.07.2020, ALONG WITH WP(C).6505/2020(K), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C)Nos.11279 & 6505 of 2020 :3: IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE N.NAGARESH WEDNE AY, THE 29TH DAY OF JULY 2020 / 7TH SRAVANA, 1942 WP(C).No.6505 OF 2020(K) PETITIONER: M/s. BHARATHEEYAM SECURITY SERVICES PVT LTD., NO.29,V.G.P.RAJESH NAGAR, 1ST MAIN ROAD, NARAYANAPURAM, CHENNAI-600 1100, REPRESENTED BY ITS OPERATIONS MANAGER, SRI.SREEJU, AGED 32 YEARS, S/O. KUNJACHAN AT ERNAKULAM BY ADV. SRI.T.K.ANANDA KRISHNAN RESPONDENTS: 1 UNION OF INDIA, REPRESENTED BY THE SECRETARY TO GOVERNMENT, MINISTRY OF LABOUR AND EMPLOYMENT, NEW DELHI-110 001 2 THE CHAIRMAN CUM MANAGING DIRECTOR, BHARAT SANCHAR NIGAM LTD, CORPORATE OFFICE, 8TH FLOOR, BHARAT SANCHAR NIGAM LTD BHAVAN, NEW DELHI-110 001 3 BHARAT SANCHAR NIGAM LTD., REPRESENTED BY ITS CHIEF GENERAL MANAGER, OFFICE OF THE CHIEF GENERAL MANAGER, TELECOM, KERALA CIRCLE, THIRUVANANTHAPURAM-695 001 4 THE ASST. GENERAL MANAGER,(GENERAL),

WP(C)Nos.11279 & 6505 of 2020 :4: BHARAT SANCHAR NIGAM LTD, THIRUVANANTHAPURAM-695 001 R1 BY ADV. SHRI.P.VIJAYAKUMAR, ASG OF INDIA R2-4 BY SRI.SAJI VARGHESE, SC, BSNL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29.07.2020, ALONG WITH WP(C).11279/2020(H), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C)Nos.11279 & 6505 of 2020 :5: J U D G M E N T ~ ~ ~ ~ ~ ~ ~ ~ ~

Dated this the 29th day of July, 2020

These writ petitions are filed by a company which is providing workers to the BSNL for infrastructure maintenance service. The petitioner seeks writ of Mandamus directing the respondents to pay amounts due to the petitioner on account of wages and other statutory payments.

2.

In W.P.(C) No.6505/2020, the petitioner seeks to direct the respondents to pay ₹2,24,19,442/- being the amount due to the petitioner on account of wages and other statutory payments till September, 2019, as per Exts.P1 to P3 agreements. In W.P.(C) No.11279/2020, the petitioner seeks direction to pay ₹1,50,96,989/- being the amount due to the petitioner on account of wages and other statutory payments

WP(C)Nos.11279 & 6505 of 2020 :6: till September, 2019. 3. Heard learned counsel for the petitioner, learned ASGI representing the Union of India and learned Standing Counsel appearing for BSNL.

4.

The fact that amounts are due from the BSNL to the petitioner towards wages payable to workers, is not in dispute. It is admitted by the learned Standing Counsel for BSNL that an amount of ₹1,93,11,953/- is due to the petitioner towards wages and GST for the period from December, 2019 to May, 2020. A further amount of ₹1,54,16,004/- is due to the petitioner for the period from September, 2019 to February, 2020. 5. It is the contention of the Standing Counsel that the BSNL is facing acute financial crisis and accumulated loss. Payments are therefore delayed to the Contractors, Suppliers and several others. Salary payable to regular employees of the company is also delayed. The company has taken several austerity measures to tie over the crisis, which are being implemented. The learned Standing Counsel

WP(C)Nos.11279 & 6505 of 2020 :7: submitted that the BSNL be given sufficient time to discharge their liability to the petitioner.

6.

The amounts due as stated by the Standing Counsel, are admittedly towards wages of the workers engaged on behalf of the BSNL. Admittedly, amounts are due under this head to the petitioner since September, 2019. Wages payable to the employees/workers cannot be indefinitely delayed, especially in the present scenario of Covid pandemic. However, taking into account the financial constraints pointed out by the learned Standing Counsel, it will also be necessary to grant limited time to the BSNL to pay off its liabilities to the petitioner. These writ petitions are therefore disposed of directing the respondents to pay the amounts due to the petitioner for the period from September, 2019 to February, 2020 (in W.P.(C) No.6505/2020) and from December, 2019 to May, 2020 (in W.P.(C) No.11279/2020), in six equal monthly instalments. The first of such instalments shall be paid on or before 31.08.2020. On receipt of money, the petitioner shall

WP(C)Nos.11279 & 6505 of 2020 :8: appropriate the same for payment of arrears of wages to workers and for payment of statutory dues first. N. NAGARESH, JUDGE aks/31.07.2020

WP(C)Nos.11279 & 6505 of 2020 :9: APPENDIX OF WP(C) 11279/2020 PETITIONER'S EXHIBITS: EXHIBIT P1OF THE AGREEMENT BETWEEN THE PETITIONER AND THE 3RD RESPONDENT WITH RESPECT TO ZONE 1 AND II DATED 25-04-2018 EXHIBIT P2OF THE LETTER EXTENDING THE EXT-P1 AGREEMENT FROM 01-05-2019 FOR A PERIOD OF ONE YEAR DATED 29-01-2019 EXHIBIT P3 THEOF THE LETTER EXTENDING THE EXT P1 AGREEMENT FROM 01-05-2020 FOR A PERIOD OF THREE MONTHS DATED 29-04-2020 EXHIBIT P4 THEOF THE E-MAIL DATED 04/12/2019 SEND BY THE PETITIONER DEMANDING THE AMOUNT FROM THE RESPONDENTS 1 TO 3 EXHIBIT P5 THEOF THE JUDGMENT IN W.P NO. 26827/2018

WP(C)Nos.11279 & 6505 of 2020 :10: APPENDIX OF WP(C) 6505/2020 PETITIONER'S EXHIBITS: EXHIBIT P1OF THE AGREEMENT BETWEEN THE PETITIONER AND THE 1ST RESPONDENT WITH RESPECT OF ZONE 1 DATED 27.08.2018 EXHIBIT P2OF THE AGREEMENT BETWEEN THE PETITIONER AND THE 1ST RESPONDENT WITH RESPECT TO ZONE II DATED 27.08.2018 EXHIBIT P3OF THE AGREEMENT BETWEEN THE PETITIONER AND THE 1ST RESPONDENT WITH RESPECT TO ZONE III DATED 27.08.2018 EXHIBIT P4OF THE AGREEMENT BETWEEN THE PETITIONER AND THE 1ST RESPONDENT WITH RESPECT TO ZONE I DATED 19.09.2019 EXHIBIT P5OF THE AGREEMENT WITH RESPECT TO ZONE II DATED 19.09.2019 EXHIBIT P6OF THE AGREEMENT BETWEEN THE PETITIONER AND THE 1ST RESPONDENT WITH RESPECT TO ZONE III DATED 19.09.2019 EXHIBIT P7OF THE E-MAIL DATED 04.12.2019 SEND BY THE PETITIONER TO THE RESPONDENTS EXHIBIT P8OF THE JUDGMENT IN W.P(C)NO. 26818/2019 EXHIBIT P9OF THE JUDGMENT IN W.P(C) NO.26884/2019

Reproduced from the public record of the Kerala High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.