In Brief
The Punjab State Cooperative Milk Producers Federation sought to appeal orders by the High Court of Punjab & Haryana that mandated implementation of revised employee pay scales from 1.1.1986 (instead of 1.1.1994). The Federation argued severe financial hardship made earlier implementation impossible. The Supreme Court held that financial stringency is a valid and relevant consideration for organizations depending on their own resources (unlike government employers). Courts may not interfere with administrative decisions on pay revisions through judicial review unless they are vitiated by illegality, irrationality, or procedural defects. The Court rejected the principle of 'equal pay for equal work' where posts have materially different qualifications, experience, and responsibilities. Upholding the Federation's decision, the Court set aside the High Court's orders and dismissed the writ petitions.
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