Holding

Deputationists who have continuously performed the duties of Assistant Grade‑II for an extended period must be absorbed in that grade and receive its pay scale.

Summary

The Food Corporation of India (FCI) had taken several Sub‑Inspectors of the West Bengal Government on deputation and assigned them to the duties of Assistant Grade‑II for more than eighteen years. When the deputationists were to be absorbed into FCI's regular service, the corporation’s circular proposed their fitment in the lower post of Assistant Grade‑III, which the deputationists contested. The Calcutta High Court, after examining the continuous satisfactory service of the deputationists in the higher grade, set aside the corporation’s decision and ordered that they be absorbed as Assistant Grade‑II with the corresponding pay scale of Rs. 380‑640. On appeal, the Supreme Court examined whether the High Court’s direction was legally sound, emphasizing that it would be unjust and arbitrary to deny the deputationists the pay scale attached to the grade they had effectively performed for many years. The Court found no error of law in the High Court’s reasoning and upheld the order directing absorption in Assistant Grade‑II. Consequently, the Special Leave Petition was dismissed.

Issues considered

Whether deputationists who have performed the functions of Assistant Grade‑II for over eighteen years are entitled to be absorbed in that grade with its pay scale, rather than a lower grade.
Whether the High Court's order setting aside the corporation’s circular and directing absorption in Assistant Grade‑II is legally valid.

Subjects

service lawdeputationabsorptionpay scaleequalityadministrative lawemployment

Judgment

FOOD CORPORATION OF INDIA A
v.
F.C.I. DEPUTATIONIST ASSOCIATION AND ORS.

AUGUST 29, 1996

[K. RAMASWAMY, B.L. HANSARIA AND S.B. MAJMUDAR, JJ.] B

Service Law :

Deputationist~~Absorptfon of after 18 years-Fitment of in pay-
scale-T7zough made to discharge dufies of the post of Assistants Grade-II C
they were sought to be absorbed in 'A{sistant Grade-Ill-Order set aside by
Single Judge and upheld by Division Bench of the High Cowt-On appeal
held, having had the employees on 'deputation, having had them absorbed
and asking them discharge the duties of the post of Assistant Grade-II for
well over 18 years, it would be highlji unjust and arbitr01y to deny them of the
scale attached to the post of Assistant Grade-II-High Court was light in D
giving the direction to absorb them in the post of Assistant Grade-II-Hence
no interference called for.

CIVIL APPELLATE JURISDICTION: Special Leave Petition (C)
No. 16416 of 1996.
E
From the judgment and Order dated 12.6.96 of the Calcutta High
Court in F.M.A. No. 376 of 1992.

H.K. Puri for the Petitioner. ·
~'.Y.t
S.K. Nandy for the Respondents. F

The following Order of the Court was delivered :

The petitioners are challenging the order of the Division Bench of
the Calcutta High Court dated June 12, 1996 made in F.M.A. No. 376/92.
The admitted position is that wni.le the respondents were working as G
Sub-Inspectors in the Food Departm'ent of the Government of West Ben-
gal, they were taken on deputation to the petitioner-Corporation. They
were made to discharge the duties of the post of Assistants Grade-II.
Admittedly, they had worked for more than 18 years in those posts. While
absorbing them, question which arose was in which scale of pay they were H
355
356 SUPREME COURT REPORTS (1996] SUPP. 5 S.C.R.

A to be fitted. In terms of paragraph 7 of the Corporation's circular bearing
No. 9-1/87-EP (Pt. 1), dated 23.9.1988, the respondents were sought to be
absorbed in Assistant Grade-III. The respondents challenged the fitment
in the writ petitions. The learned single Judge, after consideration of the
entire material recorded as under.

B "From the pleadings adduced by the parties, it appears before this
Court that because of continuous satisfactory service for 18 years
on "deputation", the petitioners having discharged the function of
Assistant Grade II, at the time of absorption the petitioners are
not entitled to be treated in a discriminatory fashion by absorbing
c them in Assistant Grade III, as it has been done in the facts of the
present case, and, as such, in any view, the writ petition is entitled
to succeed and the impugned decision dated September 22, 1988,
in so far as item No. 7 is concerned deciding to absorb the writ
petitioners in Assistant Grade-III with effect from July 1, 1984, is
set aside."
D
The Division Bench had also concurred with the conclusion reached
at by the the learned single Judge thus :

"From the pleadings of the parties it also appeared that because
E of continuous satisfactory service for about 18 years on deputation,
the deputationists have been discharging the functions of Assistant
Grade-II at the time of absorption and accordingly they were
entitled to pay scale of Assistant Grade-II at the pay scale of Rs.
380-640. We do not find any reason to interfere with the order and
F judgment passed by the learned trial judge and accordingly we
affirm the decision of the learned trial judge that the appellant
should confer the pay of the post of Assistant Grade-II carrying
1

-
the pay - scale of Rs. 380 - 640 to the said deputationist as they
were discharging the functions of Assistant Grade-II at the time
of such absorption."
G
It would thus be clear that the respondents had discharged the duty
of the posts as Assistants Grade-II for over 18 years and odd. Admittedly,
the scale of pay of Assistants Grade-II is Rs. 300-685. Consequentially they
are entitled to be absorbed in the scale of pay attached to the post of
H Assistants Grade-II.
EC.I. v. F.C.I. DEPUTATIONIST ASSN. 357

It is contended by Shri H.K. Puri, learned counsel for the petitioners, A
that since in the Corporation there was no equivalent post of Sub-Inspec-
tors, which posts the respondents had held in the State Government
service, the post in the Corporation carrying the equivalent scale of pay is
of Assistant Grade-III; necessarily they are to be fitted into the scale of
pay payable to Assistants Grade-III and that, therefore, the High Court
was not right in its conclusion that para 7 of the above circular was
B
arbitrary and in ordering pay scale meant of Assistant Grade-II. We find
no force in the contention. Having had the respondents on deputation and
having had them absorbed in their service and the respondents having
discharged the duties of the post of Assistant Grade-II for well over 18
years and odd, it would be highly unjust and arbitrary to deny them of the c
scale of pay attached to the post of Assistant Grade-II. Therefore, the
learned single judge and the Division Bench were right in giving the
direction. We do not find any error of law for interference.

The S.L.P. is accorddingly dismissed.
D
G.N. Petition dismissed.