Automobile Traders Association of Delhi Moves SC Against MHA Direction To Pay Full Wages During Lockdown

The Automobile Traders Association of Delhi (ATAD) has approached Supreme Court against Centre's order directing the private entities to pay full salary/wages to their staff during the lockdown period announced due to outbreak of Covid-19.

The petitioner association has sought quashing of clause-III of March 29 order issued by the Ministry of Home Affairs under the Disaster Management Act directing the private employers to make full payment of salary/wages to their workers or employees.

The plea is listed for hearing tomorrow before the bench headed by Justice Ashok Bhushan, which is also to take up a batch of petitions pertaining to COVID 19 related issues.

The petition, filed by advocate Nikhil Jain, stated that the members of the association are facing an "existential crisis" due to the pandemic.

"The impugned order has been passed without keeping in view the economic downfall/ economic depression suffered by the private industries and without considering financial ability to bear the burden of full wages during the lockdown."

"During this unprecedented situation of covid-19 various governments of different countries across the globe are taking measures for the workers/ employees, but Government of India has not taken any steps for the workforce and instead put the entire burden on the employers owners to pay full wages salaries."

Seeking quashing of the clause-III of Centre's order, the plea said

"the central government under section 10 (2) (1) of the Disaster Management Act, 2005 lacks the legislative competence to direct private establishments to pay full wages/ salaries to their workforce. The impugned Government order is illegal, arbitrary and violative of Article 14 (19 ) (1) (g ) and 300 A of the Constitution and thus liable to be struck down and quashed by this Hon'ble Court.