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Union Of India vs C.R. Madhava Murthy

Supreme Court6 April 2022B.V. Nagarathna · M. R. Shah

Ratio decidendi

The rule this decision rests on

Where a senior government servant who has been promoted to a higher post draws a lower rate of pay than a junior officer also promoted to an identical post in the same cadre, due to the junior officer's upgradation under an Assured Career Progression Scheme or similar scheme, the senior officer's pay must be stepped up to equal the junior officer's pay with effect from the date the junior officer received such upgradation, provided both officers belong to the same cadre, hold identical posts, are entitled to draw from identical pay scales in their respective positions, and the anomaly arose directly from the application of the upgradation scheme. This stepping up is a remedy for removal of pay anomalies and is distinct from claims based on the scheme itself.

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

Judgment

As delivered

REPORTABLE

IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NOS. 2087­2088 OF 2022

Union of India & Ors. ..Appellant (S)

Versus

Shri C.R. Madhava Murthy & Anr. ..Respondent (S)

JUDGMENT

M. R. Shah, J.

1. Feeling aggrieved and dissatisfied with the impugned common

judgment and order dated 31.07.2021 passed by the High

Court of Karnataka in Writ Petition Nos. 33038­33039/2016,

by which the High Court has allowed the said writ petitions,

the Union of India and others have preferred the present

appeals.

2. The facts leading to the present appeals in a nutshell are as

under: ­

2.1 That the respondents herein ­ original writ petitioners were

appointed as Lower Division Clerk on 01.02.1973 and Signature Not Verified Digitally signed by Indu Marwah Date: 2022.04.06 03.08.1973, respectively. Thereafter, they were promoted to the 16:24:00 IST Reason:

post of Upper Division Clerk on 04.10.1976. That one of the respondents was promoted to officiate as an Inspector w.e.f.

02.04.1981 and the other respondent was promoted to officiate

as an Inspector on 13.07.1981. One Shri C.K. Satish was

appointed as an Inspector on 17.12.1981 by way of direct

recruitment and one Shri B.S. Srikanth was also appointed as

an Inspector by way of direct recruitment on 15.05.1982.

In order to provide upgradation to its employees and to

remove the stagnation on a particular post, the Union of India

introduced “Assured Career Progression Scheme” (ACP Scheme)

w.e.f. 09.08.1999. The said Shri C.K. Satish and Shri B.S.

Srikanth were granted upgradation under the ACP Scheme.

The original writ petitioners were promoted to the post of

Superintendent of Central Excise and Customs on 02.07.2000.

The employees, juniors to the original writ petitioners were

granted upgradation under the ACP Scheme w.e.f. 17.12.2005

and 15.05.2006. However, it so happened that the persons who

were placed lower in the upgradation list than the original writ

petitioners, on account of upgradation granted to them under

the ACP Scheme, started drawing higher pay. Therefore, the

original writ petitioners submitted a representation to the

Department for stepping up and to remove the anomaly and to

fix their salaries at par with their juniors. Thereafter, the original writ petitioners preferred O.A. Nos. 813 & 814/2014

before the Central Administrative Tribunal, Bengaluru Bench,

Bengaluru. By the common order dated 04.01.2016, the

Tribunal rejected the said applications. Feeling aggrieved and

dissatisfied with the common order dated 04.01.2016 passed

by the Tribunal, the respondents herein preferred the present

writ petitions before the High Court. On considering FR 22,

which provides for stepping up of pay and the removal of

anomaly by stepping up of pay of a senior on promotion

drawing lesser pay than his junior, by the impugned common

judgment and order the High Court has allowed the writ

petitions and has directed the appellants herein to step up the

pay of the respondents herein, keeping in view the pay scale

which has been granted to the juniors from the date they have

started drawing lesser pay than their juniors. 2.2 Feeling aggrieved with the impugned common judgment and

order passed by the High Court, the Union of India and others

have preferred the present appeals.

3. Ms. Madhvi Divan, learned ASG, appearing on behalf of the

appellants has vehemently submitted that while passing the

impugned common judgment and order, the High Court has not at all appreciated and/or properly considered the ACP

Scheme.

3.1 It is submitted that the respective original writ petitioners were

already promoted to the post of Superintendent of Central

Excise and Customs. It is submitted that once the respective

writ petitioners were already granted the promotion, thereafter,

there was no question of granting any stepping up of pay under

the ACP Scheme.

3.2 It is submitted that the High Court has not at all appreciated

the object and purpose of ACP Scheme. It is submitted that as

per the catena of judgments of this Court and various High

Courts, the purpose of the ACP Scheme/MACP Scheme is to

relieve the frustration on account of stagnation and the

Scheme does not involve the actual grant of promotional post

to the employees, but to merely monetary benefits in the form

of next higher grade subject to fulfilment of qualifications and

eligibility criteria. It is submitted therefore that when in the

present case the original writ petitioners were already promoted

to the next higher post – Superintendent of Central Excise and

Customs and they were placed in the appropriate pay scale of

the promotional post, thereafter, there was no question of any

stepping up in the pay.

4. Having heard Ms. Madhvi Divan, learned ASG and considering

the facts and circumstances of the case, which has emerged

from the impugned judgment and order passed by the High

Court, it cannot be said that the original writ petitioners were

as such claiming the stepping up of the pay under the ACP

Scheme. Their grievance was with respect to the anomaly in the

pay scale and their grievance was that while granting

upgradation under the ACP Scheme, their juniors were getting

higher salaries than what they receive. Therefore, it was a case

of removal of anomaly by stepping up of pay of seniors on

promotion drawing a less pay than their juniors.

5. The High Court has therefore rightly relied and/or considered

FR 22 and the order issued by the Government of India on

removal of anomaly by stepping up of pay, which reads as

under: ­ "(22) Removal of anomaly by stepping up of pay of Senior on promotion drawing less pay than his junior ­ (a) As a result of application of FR 22 ­C. [Now FR 22 (I) (a) (1)]. In order to remove the anomaly of a Government servant promoted or appointed to a higher post on or after 1­4­1961 drawing a lower rate of pay in that post than another Government servant junior to him in the lower grade and promoted or appointed subsequently to another identical post, it has been decided the in such cases the pay of the senior officer in the higher post should be stepped up to a figure equal to the pay as fixed for the junior officer in that higher post. The stepping up should be done with effect from the date of promotion or appointment of the junior officer and will be subject to the following conditions, namely: ­

(a) Both the junior and senior officers should belong to the same cadre and the posts in which they have been promoted or appointed should be identical and in the same cadre;

(b) The scales of pay of the lower and higher posts in which they are entitled to draw pay should be identical;

(c) The anomaly should be directly as a result of the application of FR­22­C. For example, if even in the lower post the junior officer draws from time to time a higher rate of pay than the senior by virtue of grant of advance increments, the above provisions will not be invoked to step up the pay of the senior officer.”

The orders refixing the pay of the senior officers I accordance with the above provisions shall be issued under FR­27. The next increment of the senior officer will be drawn on completion of the requisite qualifying service with effect from the date of refixation of pay.

[G.I., M.F., 0.M. No.F.2 [78)­E.III (A)/66, dated the 4th February, 1966)".

6. Therefore, it was a case where a junior was drawing more pay

on account of upgradation under the ACP Scheme and there

was an anomaly and therefore, the pay of senior was required

to be stepped up. Hence, in the facts and circumstances of the

case, the High Court has rightly directed the appellants herein

to step up the pay of the original writ petitioners keeping in

view of pay scale which has been granted to the juniors from

the date they have started drawing lesser pay than their

juniors. We are in complete agreement with the view taken by

the High Court. No interference of this Court is called for.

7. In view of the above and for the reasons stated above, the

present appeals deserve to be dismissed and the same are

dismissed, accordingly.

…………………………………J. (M. R. SHAH)

…………………………………J. (B.V. NAGARATHNA) New Delhi, April 06, 2022.

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