Delhi Auto Traders Move SC To Avoid Paying Full Wages To Workers During Lockdown

The Union Government had directed private entities to pay full salaries to workers during the Coronavirus lockdown.

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On Thursday, the Hon'ble Supreme court reserved its verdict on the plea


  • The MHA order was passed under the Disaster Management Act
  • Auto traders say they are financially incapable of paying full wages
  • Automobile dealers also want a raise in fixed margins from automakers

The nationwide lockdown enforced due to the Coronavirus pandemic has meant revenues of lakhs of private entities have taken a huge hit for the last few months. Among these, are many stakeholders of the automobile industry, one the largest contributors to the country's GDP. What put many of them in a further state of dilemma was the Home Ministry order which said that full wages had to be paid to workers during the lockdown period. These include automotive dealers as well as traders across the country.

Also Read: FADA Wants Manufacturers To Increase Fixed Dealer Margin To 7 Per Cent Of Selling Price

Now the Automobile Traders Association of Delhi (ATAD) has knocked on the doors of the Hon'ble Supreme Court asking for relief. According to a report by legal website Livelaw, the national capital based association has filed a petition expressing its inability to pay workers in full during the lockdown period. The Union Home Ministry order which was announced on March 29, days after the lockdown began, comes under the National disaster management act.


Several automobile dealers have also asked the manufacturers to increase their fixed margins.

The matter including several other similar pleas was heard on Thursday where the Supreme court reserved its verdict. It has also asked the parties to submit written submission to support their claims. The Centre argued in court that the petitioners have not been able to prove that they are financially incapable of paying full wages, adding that the order was made to made to ensure that large scale migration does not take place. Earlier this week automobile dealers had also asked the manufacturers to increase the margins they get by selling selling vehicles in view of losses suffered during the Coronavirus lockdown. 


Source: LiveLaw

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