'Achcha to hum chalte hain': Rajesh Khanna bids a quiet adieu

New Delhi, Jul 21: The Supreme Court has asked the Ministry of Finance to look into a plea which claimed a loss of hundreds of crore every day, as the public sector banks are not invoking personal guarantees of big corporates who have defaulted on loans.

A bench comprising Justice R. F. Nariman and Navin Sinha asked the petitioners, Saurabh Jain and Rahul Sharma, who filed the PIL, to move the Finance Ministry with a representation within two weeks. The top court observed that the issue is important and the ministry should respond after the petitioner has made the representation before it. The matter had come up for hearing on Monday.

"We are of the view that at page 115 of the Writ Petition it has been made clear that the Ministry of Finance itself has, by a Circular, directed personal guarantees issued by promoters/managerial personnel to be invoked. According to the petitioners, despite this Circular, Public Sector Undertakings continue not to invoke such guarantees resulting in huge loss not only to the public exchequer but also to the common man", said the bench in its order.

Senior advocate Manan Mishra and advocate Durga Dutt, represented the petitioners.

Mishra contended before the bench that the statistics establish the public sector banks incurred a loss of approximately Rs 1.85 lakh crore in a financial year, and the banks did not take action to invoke personal guarantees of the biggest corporate defaulters.

The bench observed that since the petitioners claim the public sector undertakings are not complying with this circular, "We think you should first go to the ministry," said the bench.

Mishra argued before the bench that the loans from a common man are recovered through a mechanism where officials go through even the minutest detail, but promoters, chairpersons and other senior level functionaries of the big corporates find it convenient to get away by defaulting on loans.

The bench told the petitioner's counsel that the Finance Ministry has already issued a notification on this matter, and the petitioners should seek response from the ministry, and then move the top court. Mishra submitted before the bench to issue a direction to the Finance Ministry to give a response on their representation.

The bench said, "We allow the petitioners, at this stage, to withdraw this Writ Petition and approach the Ministry of Finance with a representation in this behalf. The representation will be made within a period of two weeks from today. The Ministry of Finance is directed to reply to the said representation within a period of four weeks after receiving such representation. With these observations, the petition is allowed to be withdrawn to do the needful."

Mishra contended before the bench seeking liberty to come back after a reply from the Finance Ministry. Justice Nariman said this option is open for petitioners after a decision has been taken by the ministry. "We will hear you", added Justice Nariman.

New Delhi, Jul 21: Air India trade unions have complained to Civil Aviation Minister Hardeep Puri that the government has now turned a blind eye to the management's ethnic cleansing at lower levels through compulsory leave without pay (LWP), redundancies and wage cuts.

In a letter to Puri, the Joint Action Forum of Air India unions said, "We are deeply ashamed to say that it seems that after praising our Air Indian Corona Warriors at grand functions, respectfully, the government has now turned a blind eye to this management's ethnic cleansing of Air Indians at the lower levels, through compulsory LWP, redundancies and wage cuts."

The Joint Action Forum of Air India unions strongly opposes this Compulsory Leave without pay scheme as it is an illegal practice and is not a voluntary scheme.

"In fact the Board resolution itself empowers the Chairman and Managing Director with extraordinary powers, which seem akin to a High Court, to pack off employees on 2 years leave (extended to 5 years) at CMD's discretion or at the arbitrary whim of the Regional heads," the trade unions said.

"This said Compulsory LWP scheme violates every labour law put in place by Parliament and orders of the Supreme Court and various other courts and seeks to dispossess the lower categories workers of their legally guaranteed rights," it added.

The trade unions have pointed out that the redundancies are at the elite management cadre level and not the workers.

"We are indeed shocked that the management of Air India could prepare and formulate a scheme for compulsorily sending workers on leave without pay, which is akin to an illegal lay-off, under the garb of a Leave Without Pay, when ironically the redundancy actually lies in the upper echelons of management and not with the humble workers of Air India, who have slogged to make our Airline the treasure it is," they complained to Puri.

"It must be noted that out of 11,000 permanent employees, our management occupies almost 25% as Executive Cadre, with little or no accountability. Solely amongst the Elite Management Cadre, we have 121 top officers ranking from DGMS, GMs, EDs to Functional Directors, most of whom are either performing duplicate job functions or are indeed redundant and not to mention the retired relics serving as consultants and also the CEOs of various subsidiary companies," they added.

Trade unions said the redundancy or compulsory leave without pay scheme if any at all, has to apply only to these Executives, more so, when they do not even have protection of labour laws or Supreme Court orders.

Strangely, the topmost corporate executive cadre and the backroom Generals, have saved themselves from the axe of wage cuts, by sacrificing a piffling of a few grand, whilst the frontline warriors of flying cabin crew, engineers, ground staff have borne the biggest brunt head on, the unions said.