Textile exporter Nagreeka Exports has filed a writ petition in the Supreme Court against both the Central and Maharashtra governments’ order to pay full salary to employees, workers and contract labours during the lockdown period when the factories were not operational.

The company employs 1,200-1,400 workmen and 150 employees for marketing and administrative work. The company will incur an expense of ₹1.75 crore to pay salary. Despite the hardship, the company had paid full salary for March.

With the extension of the lockdown in the State till April 30, there will be no revenue generation and the company requires ₹4 crore to meet high fixed cost, wages and salaries and it is impossible to comply with the government orders, the petitioner said.

It is impossible for the company to bear the cost of the salary without any production, it added.

The companysought a stay on the government orders as non-compliance of the orders will have serious financial repercussions, including penal actions as contemplated under the Disaster Management Act, 2005, it said.

The plea said the orders passed by the Central and the Maharashtra government are “illegal, unconstitutional” and violative of Articles 14 and 19 of the Constitution of India.

Interestingly, the Maharashtra Govemment plans to pay salary to Government employees for March in two instalments. In the first instalment, all elected representatives, including the Chief Minister, Ministers and MLAs, will be paid 40 per cent of their salaries, while employees belonging to both A and B grades will get 50 per cent, Grade C staff will get 75 per centand there will be no cut in the salaries for D-grade employees. The balance will be paid later, as per the financial situation of the State, the petition said.

The company urged the Supreme Court to allow it to pay 50 per cent salary to the workers till the pendency of the plea.

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