Set aside MHA, Maharashtra govt orders compelling payment of full wages during Covid lockdown: Textile company moves SC

A plea has been filed in the Supreme Court challenging the constitutional validity of orders passed by the Union Ministry of Home Affairs (MHA) and the Maharashtra government ordering payment of salaries to workers amid the COVID-19 lockdown. (Nagreeka Exports Limited vs Union of India).On March 29, the MHA had passed an order mandating payment of salaries to industry workers without deduction for the period of the lockdown. Similarly, on March 31, the Maharashtra government passed an order "compelling" industry owners to pay full salaries to staff, workers, contract workers and casual workers for the period of the lockdown..The petition filed by Mumbai-based textile company Nagreeka Exports Limited states that it had to face major losses to the tune of Rs 1.5 crore due to the lockdown. If they are compelled to pay full salaries, then there would “far reaching consequences", the plea states..“...as per the said Orders dated March 29, 2020 and March 31, 2020, Petitioner had to disburse full salaries to all its employees on its payroll, which amounts to approximately Rs.1.75 Crores. But these directions has caused consternation to a large number of employers in the country, despite their best intentions for and efforts towards, supporting their employees during this period of crises. Petitioner has paid full salaries/wages to all its employees/workers till month of March, 2020.".The petitioner has contended that with the lockdown now being extended, its losses will be multiplied. Further, if the company has to observe the said government orders in their entirety, its business will become unsustainable. The orders will have "more far reaching consequences, affecting the livelihood of more people”, the plea contends..The plea states that the government orders passed by the MHA and the Maharashtra government are illegal, unconstitutional and violative of Articles 14 and 19 of the Constitution of India..It also makes a case that the Disaster Management Act, under which these notifications for payment of salaries were issued, does not provide for continued payment of wages by employers to their workers/employees during any disaster. The plea reads,“National Disaster Management Authority and National Executive Committee constituted under the Act have no power under section 7 and 10, respectively, to direct the employers to make payment to their workers, without any deduction, during the period of lockdown. These government orders are passed beyond the legislative competence of the Respondents and therefore, ultra vires the Disaster Management Act, 2005.".The petitioner has asked the Court to set aside both the MHA order and the order by the Maharashtra government to the extent that payment of full salaries were mandated.The plea further prays that during the pendency of the plea, the petitioner be allowed to pay only 50% of the salaries to its workers..Substantiating as to how industries should not be burdened with the payment of wages during lockdown, the petitioner company states,"...government of India ought to have considered that Provident Fund Department has bounteous accumulation of over Rs. 351 Crores as unclaimed Provident Fund Deposits' and this amount can be utilised to financial support the workers at the times of thesc unprecedented crisis, especially since this amount has been accumulated frorn the contribution of the Industry and its workforce.".Some of the questions of law raised in the plea are:Whether the Government of India and Government of Maharashtra is empowered to issue direction to private establishment, like the Petitioner, to pay 100% wages under Disaster Management Act, 2005?Whether the respondent's directions to compulsorily pay wages to all workers, without any deduction, for the entire period when his establishment is closed during lockdown, is factually feasible for such an employer?Whether the Govt. was right in issuing vague directions without specifying as to they are applicable to employers of migrating workers, or is a blanket direction to all employers?Whether the Govt. directions are reasonable as they were issued without intelligent care and deliberation and without considering the financial capacity of the employer to bear the burden of payment of salary to its workers without their being any production?.The petition has been filed by Advocate on Record Kishan Kumar and drawn by Advocates Abhay Nevagi and Amit Singh..[READ THE PETITION HERE]