HC keeps CAT status quo order in abeyance, directs decision on power employees’ status within 3 months

In a significant development in the ongoing dispute over the status of power employees following Chandigarh’s power sector privatisation, the Punjab and Haryana High Court has kept in abeyance the Central Administrative Tribunal’s interim order granting status quo and directed the Tribunal to finally decide the controversy within a fixed timeframe.

“As agreed between the parties, the order of status quo passed by the Tribunal dated January 29 will be kept in abeyance till the original application is decided by the Tribunal,” the Bench ruled, while disposing of the writ petition filed by the Union Territory of Chandigarh.

The Division Bench of Justice Harsimran Singh Sethi and Justice Vikas Suri made it clear that the matter pending before the Tribunal — whether the employees are to be treated as employees of the Chandigarh Administration or of Chandigarh Power Distribution Limited (CPDL) — must now be adjudicated expeditiously. The Tribunal has been directed to “decide finally the lis pending between the parties within the period of three months from the next date of hearing fixed before the Tribunal.” The UT was represented in the mater by UT Additional Standing Counsel Himanshu Arora.

The Bench further mandated that pleadings be completed within four weeks “under all circumstances” and cautioned that both sides “will cooperate with the Tribunal so as to not to seek any unnecessary adjournment so that the lis between the parties be decided as expeditiously as requested herein before.”

At the same time, the court balanced equities by observing that if any order was passed during the pendency of proceedings before the Tribunal “which may cause prejudice, the parties will be at liberty to avail appropriate remedy for the remedial action in case, the same are needed before the Tribunal.”

The High Court clarified that it was not expressing any opinion on merits. “This court is not deciding upon any issue raised before the Tribunal on merit and any other issue raised by the parties including the maintainability of the original application will be decided by the Tribunal while deciding the lis between the parties on the basis of record,” the Bench recorded.

The Bench earlier this month stayed the operation of an interim order passed by the Tribunal granting status quo on the transfer of employees from the Electricity Wing of UT Engineering Department to Chandigarh Power Distribution Limited (CPDL).

The Bench was told that the Tribunal granted status quo with respect to the transfer of employees from EWEDC to CPDL and recorded a finding that they were still employees of EWEDC. Challenging the order, senior advocate Amit Jhanji and Arora, appearing for the Union Territory, argued that the scheme of privatisation, including the issue of transfer of employees, had already been adjudicated in two earlier rounds of litigation before the High Court and the Tribunal.

It was submitted that the High Court, by order dated November 6, 2024, had upheld the scheme of privatisation. The decision was carried up to the Supreme Court and remained undisturbed. Thereafter, on the issue of transfer of employees, the CAT had dismissed the employees’ petition by order dated January 17, 2025.

It was further contended that the employees stood finally transferred to CPDL following notification of the transfer scheme dated January 31, 2025. Senior advocates D.S. Patwalia and Chetan Mittal, appearing for CPDL, argued that the transfer had been completed post-notification of the transfer scheme and that the interim relief granted by the Tribunal travelled beyond the pleadings. It was contended that the impugned order had created a “catastrophic situation” as salaries and other benefits were being paid by CPDL and the employees were working under it, yet, in terms of the Tribunal’s order, they were deemed to be employees of EWEDC, resulting in mismanagement and risk of disruption in operations.