In yet another setback for the micro, small and medium (MSME) sector, the Supreme Court on Thursday refused to intervene and protect the small industries from the Ministry of Home Affairs' order directing payment of full wages.

The MHA passed on March 29 passed an order directing full payment of wages, during the course of the lockdown to workers employed by private enterprises without exception. The same order had also warned that non-payment of wages would invite legal consequences under the Disaster Management Act.

The Supreme Court was hearing a plea by Mumbai-based Twin City Industrial Employers Association. The association had sought a stay on the operation of the MHA order.

The petitioners had argued that the lockdown and the resultant closure of the industrial activity had reduced industrial production, sales and revenue to nothing. In such an economic scenario, the plea submitted, it was impossible for the small industry owners to continue paying workers.

The petitioners made a desperate plea before the court, citing threats by the Maharasthra government to initiate action if full salaries were not paid for the duration of the lockdown.

A bench of the apex court headed by Justice Ramana was unmoved by the petitions. Refusing to intervene, he observed that despite threats of action being issued, no one had been prosecuted under the MHA order or under the Disaster Management Act.

The Supreme Court's refusal to act comes after it had earlier refused to pass interim orders in a similar case. In a plea moved by a Ludhiana-based association of 41 MSMEs, the court had merely issued notice to the union government to file a reply, while turning down the plea to pass interim orders that would protect the small industries from paying full wages.

The clamour from the small industrial units appear to be growing as another plea by a Haryana-based MSMEs has already been moved before the apex court. The Haryana MSMEs are seeking wage subsidies from the central government in the range of 70-80 percent.

Interestingly, the SC is also hearing a National Association of Journalists plea, which has cited the MHA order against salary cuts and job losses in the broadcast media industry. In that case, the SC had observed that the issue of salary cuts, non-payment of wages and job losses, was a much larger issue affecting all workers.

Follow all coronavirus updates live here

First Published:Apr 30, 2020 12:32 PM IST