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Govt. Of India & Ors vs B.Anil Kumar & Ors

Supreme Court11 May 2010A. K. Patnaik · Markandey Katju

Ratio decidendi

The rule this decision rests on

The special pay awarded by the Board of Arbitration to Assistant Superintendents in the post of Assistant Superintendent is attached to the post itself and not merely to those holding the post at a particular point in time, and therefore Assistant Superintendents promoted to that post after the date of the Fourth Pay Commission recommendations are entitled to the benefit of such special pay in fixing their revised pay-scale under the Central Civil Services (Revised Pay) Rules, 1986. When a Government servant is promoted to a higher post, the initial pay in the time scale of the higher post must be fixed with reference to the pay structure of that higher post as it applies to all holders of that post, and where special pay has been awarded to the post, all employees holding that post are entitled to such special pay without discrimination. The Central Civil Services (Revised Pay) Rules, 1986 and the Fundamental Rules governing promotion and pay fixation must be read consistently with the equality guarantees in Articles 14 and 16 of the Constitution of India, and any classification that denies equal pay for equal work in the same post violates these constitutional provisions.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 8273 OF 2004

Government of India & Ors. ... Appellants

Versus

B. Anil Kumar & Ors. ... Respondents

JUDGMENT

A. K. PATNAIK, J.

This is an appeal against the judgment and order dated

12.08.2003 of the Division Bench of the Andhra Pradesh High

Court in Writ Petition No.7596 of 2003 (for short `the

impugned judgment').

2. The relevant facts very briefly are that the respondents

herein were working in the post of Investigators in the

National Sample Survey Organisation, Government of

India, Ministry of Planning and Implementation, 2

Department of Statistics at Hyderabad, in the pay-scale

of Rs.425-700 prior to 01.01.1986. The next higher post

is the post of Assistant Superintendent. In the year

1978, there was a demand by the Assistant

Superintendents working in the operation units under

the Director, National Sample Survey Organisation, that

the existing pay-scale of Rs.470-750 of the post of

Assistant Superintendents be raised to Rs.550-900 with

effect from 01.01.1978. The demand was referred to the

Board of Arbitration for adjudication on 12.02.1985.

When the reference was pending before the Board of

Arbitration, the Central Fourth Pay Commission made

recommendations that the pay-scale of Assistant

Superintendents be revised to Rs.1600-2660 with effect

from 01.01.1986. Thereafter, on 05.01.1989 the Board of

Arbitration made the Award with effect from 01.05.1982

to the effect that the Assistant Superintendents be given

pay at the existing scale of Rs.470-750 plus a special pay

of Rs.75/- per month and this special pay be counted as

pay for all purposes as per the rules. On 04.07.1989, the 3

Ministry of Finance, Department of Expenditure, issued

an order that the Ministry has agreed to the proposal of

the Department of Statistics to implement the Award of

the Board of Arbitration and allow special pay of Rs.75/-

with effect from 01.05.1982 to the Assistant

Superintendents in the Operation Units of the National

Sample Survey Organisation, but the special pay will

continue upto 31.12.1985 and will not be available in the

higher revised scale of Rs.1600-2660 with effect from

01.01.1986. The respondents who were promoted to the

post of Assistant Superintendents after 01.01.1986 were

not given the benefit of the special pay and were only

given the pay in the revised scale of Rs.1600-2660 as

recommended by the Fourth Pay Commission.

3. Aggrieved, the respondents moved the Central

Administrative Tribunal, Hyderabad Bench, (for short `the

Tribunal') in O.A. No. 827 of 2002 and by order dated

22.01.2003 the Tribunal allowed the O.A. declaring that

the respondents are entitled to the re-fixation of their pay

by merging the special pay of Rs.75/- with their basic 4

pay in the then existing pay-scale of Rs.470-750 on the

basis of the recommendations of the Fourth Pay

Commission with effect from 01.01.1986 and for

subsequent corresponding revised pay scales on the

basis of the recommendations of the Fifth Pay

Commission and directed the appellants to take steps to

get the pay of the respondents re-fixed accordingly and

further directed that the respondents shall be paid all the

arrears of salary as a result of re-fixation of their pay.

4. The appellants challenged the order dated 22.01.2003 of

the Tribunal before the High Court and by the impugned

judgment, the Division Bench while sustaining the order

of the Tribunal modified the same directing that the

respondents would be entitled to have the benefit of

special pay of Rs.75 in the revised pay-scale of Rs.1600-

2660 as recommended by the Fourth Pay Commission

and the revised pay-scale of the respondents as

recommended by the Fifth Pay Commission will have to

be appropriately fixed taking into consideration the 5

special pay of Rs.75/- and its merger in the Fifth Pay

Commission scales.

5. Miss Indira Jaising, learned Additional Solicitor General

appearing for the appellants, submitted that the Tribunal

and the High Court failed to appreciate that the Fourth

Pay Commission, while recommending revision of the

pay-scale of Assistant Superintendents from Rs.470-750

to Rs.1600-2660 with effect from 01.01.1986 had taken

into consideration the duties and responsibilities of the

Assistant Superintendents and, therefore, the special pay

of Rs.75/- given to Assistant Superintendents prior to

01.01.1986 pursuant to the Award of the Board of

Arbitration would not be available to those who were

promoted as Assistant Superintendents after 01.01.1986.

She submitted that the respondents who were promoted

to the post of Assistant Superintendent after 01.01.1986

would therefore not be entitled to the benefit of the

special pay of Rs.75/- as awarded by the Board of

Arbitration for fixation of their scale. She submitted that

the benefit of Rule 7(1)(B) of the Central Civil Services 6

(Revised Pay) Rules, 1986 (for short `the 1986 Rules') will

be available only to those who were in receipt of the

special pay as on 01.01.1986 and as the respondents

were not Assistant Superintendents as on 01.01.1986

and were not in receipt of the special pay of Rs.75/- as

awarded by the Board of Arbitration, they were not

entitled to the benefit of the special pay. She further

submitted that the respondents are also not entitled to

the benefit of Rule 7(1)(B) of the 1986 Rules as the rule

only applies to those who are in receipt of special pay

granted by the Fourth Pay Commission and Assistant

Superintendents were not given any special pay by the

Fourth Pay Commission. She submitted that the pay of

the respondents who were promoted as Assistant

Superintendents after 01.01.1986 has to be fixed in

accordance with F.R. 22(a)(1) and not in accordance with

Rule 7(1) A or Rule 7(1)B of the 1986 Rules.

6. Miss Jaising submitted that some of the aggrieved

Assistant Superintendents, who have been denied the

benefit of special pay of Rs.75/-, had filed O.A. No.695 of 7

1990 before the Central Administrative Tribunal, Madras

Bench, and O.A. No.1232 of 1997 before the Central

Administrative Tribunal, Hyderabad Bench, and the two

Benches of the Tribunal disposed of the O.As. with the

direction to the applicants to approach the Anomalies

Committee of the respective Pay Commissions. She

submitted that in the present case also the Tribunal and

the High Court, instead of allowing the benefit of special

pay to the respondents, should have directed the

respondents to approach the authorities for

reconsideration of the fixation of their pay-scale after

giving the benefit of special pay as awarded by the Board

of Arbitration.

7. Mr. P.S. Narasimha, learned counsel appearing for the

respondents, on the other hand, submitted that the

Tribunal and the High Court had given good reasons to

hold that the respondents who were promoted to the post

of Assistant Superintendent after 01.01.1986 were also

entitled to the benefit of special pay of Rs.75/- per month

as awarded by the Board of Arbitration in fixation of their 8

pay in the revised pay-scales as recommended by the

Fourth Pay Commission. He further submitted that the

Award dated 05.01.1989 of the Board of Arbitration itself

states that the special pay of Rs.75/- per month as

awarded will count for all purposes as per rules and,

therefore, will have to be counted for the purpose of

fixation of the revised pay-scale in accordance with Rule

7(1)(B) of the 1986 Rules. He submitted that the order

dated 04.07.1989 of the Ministry of Finance, Department

of Expenditure, also states that the special pay will be

recognized and be implemented for the purpose of

revision according to Rule 7(1)(B) of the 1986 Rules. He

argued that Rule 7(1)(B) of the 1986 Rules provides that

the special pay will be added to the existing emoluments

for the purpose of fixation of the revised pay-scale and

hence the respondents who had been promoted as

Assistant Superintendents were entitled to this benefit of

addition of special pay of Rs.75/- per month in the

existing emoluments for fixing their pay in the revised

scale.

9

8. Mr. Narasimha also argued that there cannot be different

pay for persons working in the same post of Assistant

Superintendents as this would amount to discrimination

and would be violative of Articles 14 and 16 of the

Constitution of India. He relied on the decisions of this

Court in Telecommunication Research Centre Scientific

Officers' (Class I) Association & Ors. v. Union of India &

Ors. [(1987) 1 SCC 582] and M.P. Singh, Deputy

Superintendent of Police, C.B.I. & Ors. v. Union of India &

Ors. [(1987) 1 SCC 592] for the proposition that there can

be no discrimination in matters of pay. He submitted

that the Assistant Superintendents have been given the

benefit of special pay of Rs.75/- after 01.01.1986 and

that their revised pay has been fixed accordingly,

whereas the respondents who have been promoted to the

post of Assistant Superintendent after 01.01.1986 have

been denied the benefit of special pay while fixing their

revised scale of pay and this amounts to discrimination

against the respondents.

10

9. Mr. Narasimha finally submitted that the respondents

were not parties to O.A. No.695 of 1990 or O.A. No.1232

of 1997 in which directions for reconsideration were

given by the Tribunal and that they had separately

moved the Central Administrative Tribunal, Hyderabad

Bench, and the Tribunal, after considering all the facts

and circumstances of the case, have directed the

appellants to give the benefit of special pay of Rs.75/-

while re-fixing the revised pay-scale of the respondents

on the basis of the recommendations of the Fourth Pay

Commission and the directions given by the Tribunal in

O.A. No.695 of 1990 and O.A. No.1232 of 1997 to

approach the authorities for reconsideration were not

binding on them.

10. We have read the impugned judgment and we find that

the High Court has given good reasons for coming to the

conclusion that the respondents, who were promoted to

the post of Assistant Superintendent after 01.01.1986,

were entitled to have the benefit of Rs.75/- as special pay

in the revised pay-scale of Rs.1600-2660. The reasons 11

given by the High Court are: (1) in paragraphs 10.359,

10.360, 10.361 and 10.362 of the recommendations of

the Fourth Pay Commission, which deal with the pay-

scale of Assistant Superintendents in National Sample

Survey Organisation, Department of Statistics, there is

no reference to the pending proceedings before the Board

of Arbitration and hence it is difficult to hold that the

Fourth Pay Commission has taken into consideration the

dispute regarding the pay-scale of Assistant

Superintendents pending before the Board of Arbitration;

(2) On the other hand, the Board of Arbitration has in its

deliberations quoted in the impugned judgment referred

to the recommendations of the Fourth Pay Commission

that the pay-scale of Assistant Superintendents should

be Rs.1600-2600 and yet the Board of Arbitration has

awarded a special pay of Rs.75/- per month for Assistant

Superintendents and has not restricted the grant of such

special pay upto 01.01.1986; (3) The special pay of

Rs.75/- per month was attached to the scale of pay of

Assistant Superintendents and employees holding the 12

post of Assistant Superintendent, whether prior to

01.01.1986 or subsequent to 01.01.1986, were,

therefore, entitled to the benefit of Rs.75/- towards

special pay.

11. We would like to give, in addition, a few more reasons in

support of the conclusion of the High Court that the

respondents, who were promoted to the post of Assistant

Superintendents after 01.01.1986, are entitled to have

the benefit of Rs.75/- as special pay in the revised pay-

scale of Rs.1600-2660 as recommended by the Fourth

Pay Commission. The recommendations of the Fourth

Pay Commission were implemented by the 1986 Rules.

Rule 7(1)(A) of the 1986 Rules covers cases of employees

whose existing emoluments do not include special pay,

Rule 7(1)(B) covers cases of employees whose existing

emoluments include special pay, but special pay has not

been continued with the revised scale of pay and Rule

7(1)(C) covers cases of employees whose existing

emoluments include special pay, but in whose case

special pay has been continued with the revised scale of 13

pay. All those employees who were Assistant

Superintendents as on 01.01.1986 for whom special pay

was awarded by the Board of Arbitration with effect from

01.05.1982 and for whom special pay did not continue

with the revised scale of pay would, therefore, be covered

under Rule 7(1)(B) and not under Rule 7(1)(A) or 7(1)(C)

of the 1986 Rules. This is the reason why the Ministry of

Finance, Department of Expenditure, in its letter dated

04.07.1989 directed that pay in the revised scale of

Rs.1600-2660 with effect from 01.01.1986 will be fixed

under Rule 7(1)(B) of the 1986 Rules.

12. The contention of the appellants, however, is that the

respondents, who were Investigators as on 01.01.1986

and were promoted to the post of Assistant

Superintendent after 01.01.1986, would not be covered

under Rule 7(1)(B) of the 1986 Rules and that on such

promotion their pay would be fixed under F.R. 22(a)(1),

the relevant portion of which is quoted hereinbelow:

"F.R.22: The initial pay of a Government servant who is appointed to a post on a time scale of pay is regulated as follows:-

14 (a)(1): Where a Government servant holding a post, other than a tenure post, in a substantive or temporary or officiating capacity is promoted or appointed in a substantive, temporary or officiating capacity, as the case may be, subject to the fulfillment of the eligibility conditions as prescribed in the relevant Recruitment Rules, to another post carrying duties and responsibilities of greater importance than those attaching to the post held by him, his initial pay in the time scale of the higher post shall be fixed at the stage next above the notional pay arrived at by increasing his pay in respect of the lower post held by him regularly by an increment at the stage at which such pay has accrued or rupees twenty five only, (now Rs.100) which is more."

A plain reading of F.R. 22(a)(1), quoted above, would show that

where a Government servant holding a post is promoted to

another post carrying duties and responsibilities of greater

importance than those attaching to the post held by him, "his

initial pay in the time scale of the higher post" shall be fixed at

the stage next above the notional pay arrived at by increasing

his pay in respect of the lower post held by him regularly by

an increment at the stage at which such pay has accrued.

Thus, on promotion to a post carrying duties and

responsibilities of greater importance, a Government servant is 15

entitled to his initial pay "in the time scale of the higher post".

In the present case, the higher post to which the respondents

were promoted after 01.01.1986 was the post of Assistant

Superintendent. If, therefore, the special pay of Rs.75/- as

has been awarded by the Board of Arbitration is for the higher

post of Assistant Superintendent, the respondents would be

entitled to the benefit of special pay, but if the special pay was

only for the Assistant Superintendents then serving, and not

for the post of Assistant Superintendent, the respondents

would not be entitled to the benefit of special pay having been

promoted after 01.01.1986.

13. `Special Pay' has been defined in F.R. 25 as:

"an addition, of the nature of pay, to the emoluments of a post or of a Government servant, granted in consideration of (a) the specially arduous nature of the duties; or (b) a specific addition to the work or responsibility".

Hence, special pay can be attached to either `a post' or `a

Government servant'.

14. We find that the reference that was made to the Board

of Arbitration was whether the pay-scale of Assistant

Superintendent of the Field Operations Division of NSSO, 16

Government of India, be revised from the existing scale of

Rs.470-750 to Rs.550-900 with effect from 01.01.1978 and the

Board of Arbitration gave the following Award:

"The Assistant Superintendents of the FOD of the NSSO, Government of India, shall be given pay at the existing scale of Rs.470-750 plus a special pay of Rs.75/- per month. This special pay shall count as pay for all purposes as per rules. This award shall take effect from 1st May 1982"

It is thus clear from a perusal of the reference and the award

of the Board of Arbitration that the special pay of Rs.75/- per

month was for the post of Assistant Superintendent in the

existing scale of pay of Rs.470-750 is irrespective of who held

the post. Therefore, the respondents, who have been

promoted to the post of Assistant Superintendent after

01.01.1986, would be entitled to the benefit of special pay of

Rs.75/- per month in the fixation of its initial pay.

15. In our considered opinion, the 1986 Rules and F.Rs.

22 and 25 have to be read consistent with the equality clauses

in Articles 14 and 16 of the Constitution and so read, all

Assistant Superintendents who are performing the same

nature of duties and responsibilities would be entitled to the 17

special pay and to deny such benefit of special pay to the

respondents, who have been promoted to the post of Assistant

Superintendents after 01.01.1986, would violate of Articles 14

and 16 of the Constitution. In support of this view, we may

now cite the authorities.

16. In M.P. Singh, Deputy Superintendent of Police, C.B.I. & Ors.

v. Union of India & Ors. (supra), this Court held:

"10. From the foregoing discussion it emerges that the Special Pay that was being paid to all the officers in the cadre of Sub-Inspectors, Inspectors and Deputy Superintendents of Police in the Central Investigating Units of the Central Bureau of Investigation has nothing to do with any compensation for which the deputationists may be entitled either on the ground of their richer experience or on the ground of their displacement from their parent departments in the various States, but it relates only to the arduous nature of the duties that is being performed by all of them irrespective of the fact whether they belong to the category of the "deputationists" or to the category of the "non-deputationists". That being the position, the classification of the officers working in the said cadres into two groups, namely, deputationists and non-deputationists for paying different rates of Special Pay does not pass the test of classification permissible under Articles 14 and 16 of the Constitution of India since it does not bear any rational relation to the object of classification."

18 17. Similarly, in Telecommunication Research Centre

Scientific Officers' (Class I) Association & Ors. v. Union of

India & Ors. (supra), this Court held:

"10. Following the decision of this Court in Randhir Singh v. Union of India ((1982) 1 SCC 618) and the decision of this Court in (M.P. Singh v. Union of India (1987) 1 SCC 592 (Writ Petition Nos. 13097- 13176 of 1984 decided today) we hold that the direct recruits (to which category the petitioners belong) in the Telecommunication Research Centre are entitled to the Special Pay at the same rates at which it is paid to the transferred officers working in that centre with effect from the date from which the transferred officers have been drawing the Special Pay. We accordingly direct Respondent 1 -- Union of India to pay the Special Pay to the direct recruits with effect from the date on which the transferred officers commenced to draw the Special Pay up to date and to continue to pay it in future also as long as the transferred officers continue to get it. The arrears of the Special Pay up to date payable to the direct recruits shall be paid within four months from today."

18. Once the Court holds that under the 1986 Rules read

with the Fundamental Rules and Articles 14 and 16 of the

Constitution, the respondents were entitled to the benefit of

special pay along with the revised scale of pay of Rs.1600-

2660 as recommended by the Fourth Pay Commission, the

Court can itself grant the relief and need not direct the 19

respondents to move the Government for reconsideration for

fixation of their pay-scales.

19. For the aforesaid reasons, we sustain the impugned

judgment of the High Court and dismiss this appeal with no

order as to costs.

.............................J. (Markandey Katju)

.............................J. (A. K. Patnaik)

New Delhi, May 11, 2010.

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