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HC bins plea against reconstitution of Delhi’s town vending committees, imposes Rs 10,000 cost

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Rejecting a plea filed by street vendors’ associations that challenged a notification constituting Town Vending Committees (TVC) in Delhi’s municipalities, the Delhi High Court has observed that they did not have a “legal right” to membership and that the “tendency” to seek nomination through court proceedings needed to be “depreciated”.

A bench of Justices Manmohan and Saurabh Banerjee on Dec 15 rejected the plea moved by a group of NGOs or associations of street vendors which claimed that they were nominated members of various TVCs constituted by the Delhi government in September 2018 under the Street Vendors Act 2014. It was argued that the TVCs were set up for surveying and identifying street vendors within six months under the Delhi Street Vendors Rules. However, no such survey had been carried out by the TVCs.

It was further argued that the Delhi government, through its notification of September 17, 2019, reconstituted the TVCs in the North Delhi Municipal Corporation, the South Delhi Municipal Corporation and the East Delhi Municipal Corporation and removed the associations as members without providing them any notice or opportunity of hearing. They argued that they could not have been removed without following the provisions of the Delhi Street Vendors Rules.

After hearing the arguments, the division bench observed that associations had only a right to be “considered for nomination” to the TVCs, but had no “legal or vested right” to be nominated for membership.

The bench further held that just because the associations were once nominated to the TVCs would not amount to their having a “fundamental or legal right” to be renominated in perpetuity, and that the government “is well within its right to reconstitute TVCs”.

Coming down on the associations, the court opined, “The tendency to get nomination through court proceedings needs to be and is depreciated”.

The bench further held that the Delhi Street Vendors Rules had no application to the case because it was not about the removal of members but only about the TVCs’ reconstitution.

Imposing a cost of Rs 10, 000 on the petitioners, the court dismissed the plea noting that there were no allegations against the qualifications of the newly appointed members, or allegations of bias against any particular official. “Consequently, the present writ petition and the pending application, being bereft of merit, are dismissed with a cost of Rs 10,000, to be paid to the Delhi High Court Legal Services Committee,” the court held.



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Agnipath scheme: HC asks Centre to justify different pay scale for Agniveers, regular sepoys

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The Delhi High Court on Wednesday asked the Centre to justify different pay scale of ‘Agniveers’ and regular sepoys in the Indian Army if their job profile is same.

As the counsel for the central government responded that ‘Agniveer’ is a different cadre from the regular cadre of armed forces, the high court said, “different cadre does not answer job profile, the question is work and responsibility.” “If the job profile is same, then how you justify different pay? A lot will depend on the job profile. Get instructions on this and put it on an affidavit,” a bench of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad told Additional Solicitor General Aishwarya Bhati who was representing the Centre.

The law officer responded that as ‘Agniveer’ cadre is separate from the regular cadre, their terms and conditions and responsibilities are also different from sepoys (soldiers).

She said the responsibility can’t be the same and even work of Agniveers and general cadre is not same.

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“Agniveer cadre has been created as a separate cadre. It will not be counted as a regular service. After serving as an Agniveer for four years, if he or she volunteers and is found fit then his journey in the regular cadre begins,” Bhati submitted.

She said for the first time, young girls are being taken in armed forces as Agniveers.

When a counsel for one of the petitioners said it was being done without medical test, the bench shot back, “Don’t you think you should welcome this step. Girls are also coming in this, it is a welcome step.” Defending its Agnipath scheme, the Centre said a large amount of study has gone into this policy and it was not a decision which was taken lightly and the Union of India was mindful and cognisant of the situation.

The Central government, which was responding to a batch of petitions challenging its Agnipath scheme, said it was working on the scheme which will enhance the morale of the youth and also on skill mapping of Agniveers.

The ASG said Indian armed forces are the most professional armed forces in the world and they should be given much bigger leeway when they are taking such big policy decisions.

Bhati said numerous consultations, both internal and external, were carried out during the past two years and a number of meetings and consultations over many hours have also been held with the stakeholders.

The bench, which concluded hearing arguments on pleas directly challenging the Agnipath scheme, will continue hearing on Thursday submission on those petitions concerning the recruitment processes for the armed forces under certain previous advertisements.

The Centre further said that below the officers’ post, now Agniveer is the only way to join armed forces at soldiers’ level and only medical section has been kept out of it.

Advocate Prashant Bhushan, appearing for the petitioners in a petition concerning cancellation of the recruitment processes for the armed forces under certain previous advertisements, said he has not challenged the Agnipath scheme as he was not sure whether proper consultations took place or not.

He said the recruitment process in which his clients had applied for were almost complete and only call letters had to come but initially it was delayed and later the authorities cancelled the process after announcement of Agnipath scheme.

“They kept telling us that they are going to do it, it was delayed due to COVID or some administrative issues. We decided to forego other appointment letters by BSF and others because we were certain that this recruitment (in the Indian Air Force) is going to happen but the authorities cancelled it. It is arbitrary to stop the recruitment at this stage,” he argued.

On December 12, the bench had asked the petitioners who have challenged the Centre’s short-term military recruitment scheme Agnipath as to which of their rights have been violated and said it was voluntary and those having any problem should not join the armed forces under it.

The high court had said the Agnipath scheme has been formed by experts in Army, Navy and Air Force and judges were not military experts.

The Agnipath scheme, unveiled on June 14, lays out rules for the recruitment of youths in the armed forces.

According to these rules, those between 17-and-a-half and 21 years of age are eligible to apply and they would be inducted for a four-year tenure. The scheme allows 25 per cent of them to be granted regular service subsequently. After the scheme was unveiled, protests erupted in several states against the scheme.

Later, the government extended the upper age limit to 23 years for recruitment in 2022.

One of the petitioner’s counsel had said that after being recruited under the scheme, the Agniveers will have life insurance of Rs 48 lakh in case of contingency which is much less than the existing one.

Whatever the armed forces personnel are entitled to, these Agniveers will get them only for four years, the counsel had argued, adding that if the service would have been for five years, they would have been entitled to gratuity.

The counsel had contended that after four years of service, only 25 per cent of the Agniveers will be considered for being retained in the force and there is no backup plan for the rest of the 75 per cent.

The Centre had earlier filed its consolidated reply to several petitions against the Agnipath scheme as well as those concerning the recruitment processes for the armed forces under certain previous advertisements and has said there was no legal infirmity in it.

The government submitted that the Agnipath scheme was introduced in the exercise of its sovereign function to make national security and defence more “robust, “impenetrable” and “abreast with changing military requirements”.

One of the petitions before the high court has sought a direction to the armed forces to resume the recruitment process which has been cancelled due to the introduction of the Agnipath scheme and prepare the final merit list after conducting a written examination within a stipulated time.

Earlier, the Supreme Court had asked the high courts of Kerala, Punjab and Haryana, Patna and Uttarakhand to transfer the PILs against the Agnipath scheme pending before them to the Delhi High Court or keep it pending till a decision from the Delhi High Court is delivered, if the petitioners before it so desire.



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Tipping Point | The Indian Express

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Last week, the Delhi High Court stayed the operation of guidelines issued by the Central Consumer Protection Authority (CCPA), which prohibited hotels and restaurants from adding a component of service charge to their bills. The guidelines stated that collection of service charge as a pre-condition to placing an order of food and beverages amounts to a restrictive trade practice as per Section 2 (41) of the Consumer Protection Act, 2019.

Under Article 226 of the Constitution, the application of an order passed by the Delhi HC ought to only be confined to the national capital territory (NCT) of Delhi. However, in view of the decision passed by the Supreme Court in Kusum Ingots and Alloys Ltd. v. Union of India (2004), any order passed by a high court on the constitutionality of central legislation will have effect throughout the country. With the Consumer Protection Act being an enactment of Parliament, it is safe to say that the order clears the way for hotels and restaurants across the country to restore their practice of levying a service charge.

The practice of levying a service charge has been followed by the hospitality industry since Independence. The first formal validation for service charge came in 1958, when the Hotel Standards and Rate Structure Committee under the chairmanship of Dewan Chaman Lal recommended that there be a uniform charge of 10 per cent on the customer’s bill throughout India. The committee condemned the practice of solicitation of tips, calling it injurious to the dignity of the worker and causing harassment to the customer. It further called for the introduction of comprehensive legislation, which would provide a minimum-wage structure, uniform rate of service charge and most importantly, the utilisation and apportionment of the service charge for the benefit of the staff. The report emphasised the need for regulating the working conditions of the unskilled and semi-skilled staff working at hotels and restaurants and suggested that a portion of the service charge so collected may be utilised to provide benefits such as provident funds, pensions and life insurance.

Thereafter in 1964, a Wage Board was constituted by the Chief Commissioner, Delhi which accepted the practice of levying a service charge ranging between 5-10 per cent on a customer’s bills. It even provided for the apportionment of the service charge collected, of which 45 per cent was to be allocated for the staff working at the establishment.

Many decades and recommendations later, there is no legislative framework regulating the imposition and apportionment of service charge in India. That being said, the practice has been upheld by various decisions of the Supreme Court as well as the National Consumer Disputes Redressal Commission. The National Restaurants Association of India argued that prohibiting hotels and restaurants from levying service charge would lead to inequitable distribution of tips as the same is only likely to be pocketed by the staff who come into contact with the customer, leaving the back-end workers high and dry. This argument is inspired by the Supreme Court’s observations in Wenger & Company and others vs. Their Workmen (1963), which deprecated the practice of tipping as a nuisance for the customer and an excuse by the management to justify low wages.

Notwithstanding the lack of uniformity in its application (for want of a legal framework), the question still arises: How did a longstanding practice of levying service charge suddenly become “unfair” and “restrictive”?

A service charge on food bills is a regular feature in countries such as the UK, US and Singapore. This is despite the fact that an establishment in the US spends over 37 per cent of its total overheads on staff whereas in India it ranges between 10-15 per cent. In fact, in the US, some states allow a “tip credit” to count as a part of the Federal Minimum Wage. In the UK, all staff in licenced hotels and restaurants are entitled to a statutory minimum wage, unlike in India, where the sector is largely unorganised and most workers barely get their basic pay, let alone any other benefits.

The Delhi HC is expected to address the issue of whether the levy of service charge comes within the ambit of “unfair trade practice” under Section 2 (47) of the Consumer Protection Act. In the absence of formal legislation regulating the concept, the issue relating to the application of service charge might be at the risk of being viewed from the lens of the consumer and not the worker. One can only hope that the court, while finally deciding this issue, gives an audience to the concerns of the workers’ community, compelling our lawmakers to come to their rescue.

The writer, a lawyer, is partner at Numen Law Offices



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‘How do they expect salaries if they don’t do work?’: Court slams Delhi MCDs on dengue

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Warning the municipal bodies and their employees that the court will not exercise its discretionary jurisdiction in their favour if the civic conditions in the national capital do not improve, the Delhi High Court Tuesday ordered the local bodies to hold a meeting regarding the rising number of dengue cases.

The division bench of Justice Vipin Sanghi and Justice Jasmeet Singh ordered the chairpersons of the South, North and East Delhi municipal corporations, the North Delhi Municipal Council as well as the chief executive officer of the Delhi Cantonment Board to conduct a meeting and apprise the court about the steps being taken to control mosquito breeding. The court will hear the matter on December 1.

The court also said that it had earlier raised the issue of geotagging and marking of biometric attendance of employees. “We direct the petitioner to place on record what steps have been taken in this regard. This information should be provided in the affidavit to be filed,” it said in a direction issued to the SDMC while hearing the latter’s petition regarding funds being received from the government by municipal bodies.

Expressing concern over the dengue situation in Delhi, the court said that it has been dealing with non-payment of salaries of municipal employees for months and, in October, had noted that while the employees were clamouring for payment of their dues, the city was suffering due to their inefficient functioning. However, it said that its concern fell on deaf ears as the situation has only worsened.

“This year we are only witnessing a big surge in the number of cases of dengue. There have been several fatalities on account of the said disease,” said the court, while blaming the municipalities.

The court said that the employees were only demanding salaries but nothing was happening on the ground.

“How can it be that every year dengue is increasing? Is it not a municipal function? Is it some rocket science that after the monsoon there will be mosquitos. After the monsoon, there will be dengue. It has been a pattern for the last 15 to 20 years. Is there some rocket science involved? Is there no planning? Is there no thought process?” it asked.

It further noted that the municipal bodies may be overstaffed. “Is it that the municipality has given up everything and it’s only to collect taxes and disburse salaries? We will not entertain this petition. How do they expect salaries if they don’t do work?” the court told the SDMC.

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‘If tomorrow some life is lost in fire, who will be responsible’, Delhi HC pulls up SDMC on illegal street vending

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Observing that commercial places like Nehru Place have become slums now, Delhi High Court on Wednesday said that the officers of South Delhi Municipal Corporation (SDMC) are not even bothered to read the court orders and that police officials, despite being deployed to act against unauthorised vendors, are not being guided by the corporation.

“There is something more than what meets the eye and that is what the policeman is also saying ‘what do I do? I have deployed the force and I don’t know what is to be done’ because SDMC is not playing the role of the leaders,” said the division bench of Justice Manmohan and Justice Navin Chawla.

Pulling up SDMC for not following up on its own statement on moving the Supreme Court about the 95 street vendors who have interim orders in their favour for hawking at the Nehru Place, the court said that the officers have done nothing for the last four weeks. It also noted that vendors have to follow the tehbazari conditions in the meantime.

“How far is the Supreme Court from here? How long do you take to move an application? Your officers have to realise the urgency of the situation. If tomorrow in the fire some life is lost, who will be responsible? Just because your officer could not send one letter from one table to the other, some life will be lost,” said the court.

The high court initiated a suo motu case on August 13 after a fire incident took place in a building at Nehru Place. On October 7, the bench directed the authorities to earmark a lane for emergency services so that the fire brigade and ambulance can reach Nehru Place at the earliest without any hindrance, and ensure that no illegal vendors hawk in and around it.

On Wednesday, the court warned SDMC against using court orders to increase the license fee. “Don’t use our court orders to increase some rates. Don’t use us. We will come down on you with a ton of bricks. Don’t spoil our good name. Don’t say we are being strict and tough, therefore the rates need to go higher, that should not happen. Some officer will lose his job,” it added.

The court also questioned SDMC for not disclosing that vendors were keeping their goods at Nehru place even after working hours. “Was this not your job to disclose? I don’t know why they pay these officers. If we have to do their duties, then we will do it….then don’t pay them. Our October 7 order has not been implemented at all,” it said further.

Meanwhile, the division bench of Justice Vipin Sanghi and Justice Jasmeet Singh, in a separate matter related to Chandni Chowk, said that there was no “political will” to act against illegal hawkers and directed North Delhi Municipal Corporation (NDMC) to immediately start the process for preparing a plan under the Street Vendors Act in consultation with experts.

“Why are we wasting our time and trying to set it in order when everybody is out to scuttle the efforts,” observed the bench, adding that the vending needs to be properly regulated so that the vendors can earn their living and at the same time it is convenient for the people to buy goods and services.

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Delhi HC directs MCDs to expedite appointment of special educators in its schools

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The Delhi High Court has directed the municipal corporations to identify vacancies of Special Educators (Primary) in their schools at the earliest, after the Lieutenant Governor granted a one-time age relaxation of 10 years to fill vacant posts till December 2022.

The court had earlier expressed concern over the large number of vacancies of special educators in MCD schools and termed it ironic that while authorities are not getting candidates to fill posts, they have created “an impediment” for those interested by insisting on the age criteria.

There are more than 1,126 vacancies of Special Educator (Primary) in MCD schools. The court had said that authorities need to view the matter from “the perspective of underprivileged children and, then, perhaps, tweak the policy to cater to their needs”.

The L-G has now granted one-time age relaxation of 10 years, beyond the age limit prescribed for the same post in MCD schools, for the vacancies till December 2022. The government has, however, said the relaxations would not be applicable for the posts advertised previously.

The counsel representing the East, South and North Delhi municipal corporations assured the court that once the results are declared for the posts, vacancies shall be identified and duly advertised.

The court in the order has directed the municipal corporations “to identify leftover vacancies and expected slots/vacancies qua the post of Special Educator (Primary), which would be available till December 2022, at the earliest, though not later than four weeks from the date of the declaration of result”.

The order has been passed in a petition challenging the Central Administrative Tribunal’s decision not to interfere with the authorities’ March 2020 decision of providing the age relaxation only in respect of those posts advertised in 2017. The CAT in July 2020 said the candidates cannot insist on the relaxation being made a permanent measure.

However, the division bench last month noted that the authorities in December 2019 in respect of government-run schools had provided a one-time age relaxation of 10 years for all Special Education Teacher posts but in respect of Special Educator (Primary) posts of municipal schools limited such benefit to only posts advertised in 2017.

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