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Union Of India & Ors vs Jagdish Pandey & Ors

Supreme Court8 July 2010Swatanter Kumar · B.S. Chauhan

Ratio decidendi

The rule this decision rests on

Where a statutory or administrative authority has granted and continued to pay an employee a particular pay scale over a long period of time without objection, and later seeks to withdraw that scale claiming it was granted erroneously, the burden lies upon the authority to establish a substantial and justified basis for the withdrawal by placing cogent material on record before the adjudicating forum; mere assertion of inadvertent error is insufficient to effect such withdrawal. Where an adjudicating authority or higher court makes a factual finding that an employee has been treated consistently as equivalent to another category of employee with parity in pay scale over an extended period, and the party seeking to disturb such treatment has failed to raise and substantiate before the first forum all grounds distinguishing the two categories, such party cannot for the first time raise new factual contentions at appellate or higher levels without supporting documentation, and those contentions cannot be permitted to overturn concurrent findings of fact recorded by lower forums. A legitimate right conferred upon an employee through an administrative order conferring a particular pay scale cannot be unilaterally varied or withdrawn except in accordance with law and only upon valid and proper reasons duly recorded and substantiated; absent such justification, the withdrawal of the pay scale is arbitrary and unsustainable.

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. 365 OF 2007
Union of India & Ors. ....Petitioners
Versus
Jagdish Pandey & Ors. ...Respondents
JUDGMENT
Swatanter Kumar, J.
1. The Union of India being aggrieved from the judgment
and order of a Division Bench of the Calcutta High Court
dated 2nd March, 2005 dismissing, the Writ Petition filed by
the Union of India against the order of the Central
Administrative Tribunal, Calcutta, (hereinafter referred to
as `the Tribunal') dated 18th January, 2002, has filed the
present appeal under Article 136 of the Constitution of
India. The Tribunal vide its judgment had allowed the
application filed by the respondents herein and had set
aside the order dated 22nd February, 2001 issued by the
Union of India.
2. The facts giving rise to the present appeals are that
the respondents are/were working as Tower Wagon Drivers
(for short `TWD') under the Eastern Railways. They were
promoted to the said post between the period 1979-1981.
These respondents claimed running allowance @ 120 k.m.
2per day while on duty in terms of para 3.12 of the New
Running Allowance Rules - structuring of the cadre. This
was not paid to them resulting in the filing of a Writ Petition
by them before the High Court of Calcutta. This Writ
Petition was allowed by the High Court and the Eastern
Railways were directed to pay `running allowance' to the
respondents. It may be noticed that while disposing of that
Writ Petition being Civil Petition No. 4143 of 1988 and C.O.
No. 1812 (W) of 1984 the Court passed the following Order:
"After hearing the Learned Advocatesand considering their submissions, wefeel that a happy solution has been
arrived at. We thus, after bearingthem direct that with four monthsfrom today, the petitioners will be paidat the rate of 120 kilo meter per daywhile on duty in terms of paragraph
3.12 of the New Running AllowanceRules - structuring of cadre. We alsokeep it on record that while makingsuch payment, authorities will be ableand entitled to adjust the amount,which has already been received by theemployees concerned on the basis ofthe works, which they have done. Thetime, we directed, was suggested by
3Mr. Chakrabarty on instructions fromMr. C.B. Chowdhury, Deputy ChiefElectrical Engineer, Eastern Railway,who was present in Court."
3. After this allowance had been paid to the respondents,
the Eastern Railways passed an order dated 22nd February,
2001 stating that they were granted higher pay scales
inadvertently and the said scale is withdrawn as well as for
recovery of amounts paid in excess of the amounts which
ought to have been paid to the respondents in the lower
scale. The correctness of this order was questioned by the
respondents before the Tribunal, submitting that they were
granted the pay scale of Goods Driver vide IVth Pay
Commission w.e.f. 1.1.1986. They continued to draw the
prescribed pay scale which was subsequently revised to
Rs.5,000 - 8,000/- w.e.f. 1.1.1996 in terms of Vth Pay
Commission. The order was arbitrary as the function and
duties of the TWDs were similar to that of the Goods Driver
and these posts were treated to be inter-changeable by the
4department which passed such orders of transfer from time
to time. Thus, they prayed that they be permitted to
withdraw the same pay scale. This application was
contested by Eastern Railways on behalf of the Union of
India and it was stated that the scale was granted by
inadvertent error and they are not entitled to the pay scale
of Rs.1350-2200/- w.e.f. 1.1.1986 and also that they are
not equivalent to the Goods Drivers. The matter was
examined at some length by the Tribunal. It was noticed
that vide Annexure `E' to that application dated 15th April,
1993, the Eastern Railways itself has stated that all TWDs
should be given the grade of Goods Drivers i.e. Rs.1350-
2200/- (unrevised). There is no Railway Board's circular or
order directing that TWDs are not entitled to the pay scale
of the Goods Drivers and they are not justified in taking
decision to grant lower pay scales. The respondents had
also relied upon the judgment of this Court in the case of
Chandraprakash Madhavrao Dadwa v. Union of India,
5[(1998) 8 SCC 154] and Shyam Babu Verma v. Union of
India, [(1994) 27 ATC 121].
4. Referring to the pleadings of the parties and the record
available before the Tribunal, the Tribunal did not accept
the contention of the Eastern Railways that it was by
mistake that higher pay scale was given to the respondents
as they were getting the same pay scales right from the year
1959. The Railways had hardly produced any records
before the Tribunal to justify its decision in down grading
the pay scale of the respondents and directing the
consequential recoveries. It will be useful to refer to
reasoning given by the Tribunal at this stage itself:
"12 In view of the clear avermentsmade in the OA, which have not beenspecifically rebutted by therespondents, as already stated above,and in view of the Railway Board'sletter issued in implementation of theCalcutta High Court's order, by whichthe Tower Wagon Drivers were placedin the category of Goods Drivers for allpurposes, the applicants werecertainly entitled to have the salary in
6the pay scale of Rs.1350-2200/- w.e.f.1.1.1986 and as a matter of fact, theyhave been paid salary in the same payscale till the impugned order wasissued.
13. It may also be pointed out thatpursuant to the acceptance of the 5thPay Commission Report by theGovernment, the Tower Wagon Driverswere given the salary in the pay scaleof Rs.8000-8000/- w.e.f. 1.1.1996. Inthe letter dated 15.4.1993 (AnnexureE), the Sr. DLD/TRD/Sealdah,intimated to the Sr. DPC/Sealdah thatin Sealdah Division, out of 32 TowerWagon Drivers, 24 Tower WagonDrivers were getting the pay scale ofRs.1350-2200/- and the remaining 8Tower Wagon Drivers were getting thepay scale of Rs.1320-2040/- andaccording to him, all the Tower VanDrivers may be given the uniform payscale of Rs.1350-2200/-. It seemsthat two different pay scales for TowerVan Drivers were prescribed becauseof the fact that prior to 1986, therewere two different pay scales at theratio of 60% and 40% for GoodsDrivers as mentioned above. Be thatas it may, it is evident that in SealdahDivision also, the Tower Wagon Driverswere given the pay scale of Rs.1350-
2200/- w.e.f 1.1.1986. It is differentthing that the order of giving pay scale
7of Rs.1350-2200/- was withdrawn bythe respondents after filing of this O.A.
14. It is not understood on whatbasis, the respondents decided todiscontinue to pay the salary to theTower Wagon Drivers in the pay scaleof Rs.1350-2200/-. There could be asituation if the Tower Wagon Driverswere not considered as part of the"Running Staff" and, therefore, theirservice conditions would be different.Once they have been treated as part ofthe "Running Staff" and they are alsoperforming the job of driving the TowerVans/Wagons, there cannot be anyjustification not to treat them at parwith the lower grade of Goods Driversin the railway.
15. It is not the case where therespondents claim that the pay scale ofthe Tower Wagon Drivers has been re-
fixed on the basis of some ExpertCommittee Report. It is obvious thatthe pay scale of Rs.1350-2200/- wasgiven to the applicants on the basis ofsome Expert Committee Report. It isobvious that the pay scale of Rs.1350-2200/- was given to the applicants onthe basis of the decision that they wereat par with the Goods Drivers. Now ifthe respondents seek to place theapplicants in the lower pay scale, theburden lies on them to show the basis
8of taking such decision adverse to theinterest of Tower Wagon Drivers."
5. As already noticed, the challenge to the above order
was not accepted by the High Court and both the issues
raised before the High Court, namely that the case of the
Railway was not considered properly by the Tribunal on
merits and secondly, it had no jurisdiction to examine the
said circular as the order was passed by the Divisional
Railway Manager outside the jurisdiction of the Tribunal
were rejected and while upholding the order of the Tribunal,
the High Court of Calcutta held as under:
"Considering the aforesaid, it isapparent that at all relevant timeTower Wagon Drivers are being treatedas equivalent to Goods Train Drivers.There is no reason shown for treatingthem now differently. Contention ofauthorities refusing to treat the TowerWagon Drivers equivalent to driver ofGoods Train, cannot be accepted. Ifthe Tower Wagon Drivers arecontinuously being treated as runningstaff and equivalent to drivers of goodstrains; drivers there is no reasonshown for which Tower Wagon Drivers
9cannot be refused to be treated asequivalent to the same grade as earlierwas being done for a long period. Theimpugned judgments have dealt withthe relevant aspects appropriately andthere is no reason to interfere with thesame."
6. The above decision of the High Court is impugned in
the present appeal. The basic contention raised on behalf
of the Union of India before this Court is that the job,
duties, responsibilities and even essential training required
for TWDs are not comparable to those of the good train
drivers. In addition, the contention is also that the scales
were granted inadvertently and now the competent
authority, after due application of mind, has passed the
order granting lower scales to the TWDs in comparison to
goods train drivers.
7. In order to examine the merits of these contentions,
which obviously are disputed by the respondents, it will be
10appropriate to refer to the order impugned itself which
reads as under:
"Eastern RailwayEstt. Office Order No. 199/02/Misc.
C of 2001 (22.02.01)
With the approval of the competentauthority the following order areissued to have immediate effect -
The pay of the following T.W.Drivers of Dhanbad Division was fixedin scale S. 1350-2900 (RP) w.e.f.
01.01.1996 in IVth PC in the scale Rs.
1350-2200/- (R.P.) and scale Rs.
5000-8000/- (RSRP) erroneously forwhich they were not entitled.
As such their pay scale is revisedto S.1320-2040 (RSRP) w.e.f.
01.01.1986 in IV P.C. and Rs. 4500-7000/- (RSRP) w.e.f. 01.01.1996 inVth P.C.
xxx xxx xxx
The staff concerned should beintimated accordingly"
8. The respondents in the present appeal had
challenged the validity of the above order before the
11Tribunal on various grounds including that they have
always been placed at parity with the goods driver, they
have been given similar scales and there was no reason,
whatsoever, for altering the pay scale to the prejudice of the
respondents, which was in force for a considerable time. It
will be useful for us to notice the findings recorded by the
Tribunal. In paragraph 8 of its judgment the Tribunal
noticed that both the parties have not placed on record any
material to indicate as to what was the pay scale provided
for the TWDs pursuant to the various Pay Commission
Reports. The Tribunal specifically noticed and recorded the
finding that for the last 40 years, i.e. right from 1959 the
respondents were being paid the same pay scale as goods
drivers. There was no disparity of pay scales between
TWDs and goods drivers after Union of India and Railways
had accepted recommendations of the IInd, IIIrd, IVth and
even of Vth Pay Commissions. The Tribunal also
specifically noticed vague denials of the Union of India and
12that such denials were hardly substantiated by any cogent
material. Reliance was placed upon the judgment of the
Calcutta High Court in relation to the grant of running
allowance. In that Writ Petition, the only dispute raised by
the parties related to the grant of running allowance and
the Union of India did not raise the issue of disparity in pay
scale. This order of the High Court had attained finality.
We have already referred to the findings recorded by the

Tribunal where it is specifically noticed that after

acceptance of Vth Pay Commission Report by the

Government, TWDs were given the salary in the pay scale of

Rs. 5000-8000 w.e.f. 1.1.1996 and in the letter dated

15.4.1993 the concerned authorities noticed the disparity

created even between the TWDs i.e. in Sealdah division out

of 32 TWDs, 24 were getting pay scale of Rs. 1350-2200

(unrevised) and remaining 8 were getting the pay scale of

Rs. 1320-2040 and it directed a uniform pay scale of Rs.

1350-2200 should be given to all the TWDs. Another

13 reason that weighed with the Tribunal was that no material

has been produced to show as to what were the reasons or

material on the basis of which the authorities had decided

to discontinue the pay scale of Rs. 1350-2200 to these

respondents. The above reasoning and discussion in the

order of the Tribunal clearly shows that the action on the

face of it was arbitrary. This order of the Tribunal was

confirmed by the High Court and the respondents made no

effort to place anything on record to show that they were

different and distinct classes and were entitled to receive

different pay scales. Even in the order dated 9th August,

2002 the Tribunal specifically noticed that it was not even

averted that eligibility criteria for the post of TWDs was

different than that for the goods driver and their duties

were substantially different. In other words, either before

the Tribunal or before the High Court the Union of India

never pleaded the essential basis for justifying payment of

different pay scales to two categories of drivers i.e. TWDs

14 on the one hand and goods train drivers on the other.

There has to be a substantial difference in method of

recruitment, eligibility, duties and responsibilities before

substantial disparity in scale can be justified. As far as

recording of finding of facts is concerned, factual disputes

can hardly be raised before this Court and in any case for

the first time. Despite this the Union of India has failed to

place any material to substantiate its decision before the

Forum/Courts. The judgment of the Calcutta High Court,

in relation to running allowances, has attained finality. At

that time no other issue was raised by Union of India that

they are different and distinct posts with different pay

scales and as such identical running allowances could not

be paid. In fact, the judgment of the Calcutta High Court

has duly been implemented now for years together without

objection. Not only this, same pay scale as that of the

goods train driver has been paid to these respondents for

years and there appears to be no justification on record for

15 unilateral withdrawal of such a scale. Pay scale is a

legitimate right of an employee and except for valid and

proper reasons it cannot be varied, that only in accordance

with law. None of these justifiable reasons exist in the

present case. The impugned order itself does not give any

reason. The expression `erroneously' used in the order can

hardly justify withdrawal of such an existing right.

9. We may also notice that the respondents had

specifically pleaded and even placed on record certain

orders in which in certain divisions the post of TWD is

inter-changeable with goods driver. Orders have also been

placed on record to show that in different divisions TWDs

are getting different scales and the Railway Board, as such,

has not passed any final order which is uniformly

applicable to all the divisions of the Railways in India. Of

course, this has been disputed by the appellants. The

appellants have also attempted to file certain documents

on record to show that the duties of both these posts are

16 different and even recruitment criteria is different. We are

afraid that this contention cannot be raised for the first

time before this Court. This was expected of the Union of

India to raise all these issues before the appropriate forum

i.e. the Tribunal and justify the same. Even before us,

these averments have been made without any supporting

data or documents to substantiate such a plea. No

comparative chart of the duties and responsibilities of these

two posts, recruitment rules specifying eligibility or

selection criteria and working conditions have been placed

on record. The vague averments made to that effect cannot

persuade this Court to disturb the concurrent findings

recorded by the Tribunal as well as by the High Court.

10. It is a well settled rule that parties are expected to

raise specific pleadings before the first forum for

adjudication of the dispute. Those pleadings are the basis

of the case of the respective parties even before the

appellate/higher Courts. The parties would be bound by

17 such pleadings, of course, subject to the right of

amendment allowed in accordance with law. In the present

case, no such amendment has been carried out even before

the High Court and it will be unfair for this Court to get into

the controversy of factual matrix of the case at this stage of

the proceedings, particularly, when there exists no

justification whatsoever on record as to why even these

averments were not made before the Tribunal and not even

before the High Court, despite the fact that the Tribunal

had specifically made comments in this regard in its

judgment. Even before this Court but for bald averments

no documents, data or cogent material has been placed for

appropriate adjudication of the rights of the parties.

11. During the course of arguments this was also brought

to our notice that most of the respondents in the present

appeal have already retired from service and there exist no

justification for affecting any recoveries from their salaries

18 as they have already worked and received their salaries as

granted by the Union of India itself.

12. For the reasons afore stated, we find no legal infirmity

in the judgments of the Tribunal and the High Court. While

dismissing this appeal we make it clear that this judgment

will not affect the right of Union of India to pass an

appropriate order in relation to the pay scales applicable to

any class of its employees including the respondents afresh

and in accordance with law. We do hope that if such an

order is passed it will be upon proper application of

mind and after taking into consideration appropriate

material and/or data.

13. The appeal is dismissed leaving the parties to bear

their own costs.

................................J. [ DR. B.S. CHAUHAN ]

19 ..............................J. [ SWATANTER KUMAR ] New Delhi July 08, 2010.

20

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