I. LAXMA REDDYversusA.P.S.R.T.C. AND ORS.
- Citation
- 2007 INSC 1174
- Decided
- 22 November 2007
- Bench
- ARIJIT PASAYAT
Holding
A reinstatement order without a specific direction for increments does not grant the employee notional increments.
Summary
Laxma Reddy obtained a Labour Court order reinstating him after an unauthorized absence. He petitioned that his salary should be fixed with notional increments as if he had continuous service. A Single Judge allowed the petition relying on APSRTC v. P. Nageswara Rao, but the Andhra Pradesh High Court reversed, citing S. Narsagoud and Abdul Kareem decisions that reinstatement without a specific direction does not confer such increments. The Supreme Court affirmed the High Court, holding that a simple reinstatement order does not entitle the employee to notional increments unless expressly ordered. Consequently, the appeal was dismissed.
Issues considered
- Does an order of reinstatement with a direction for continuity of service entitle the employee to notional increments for the period of unauthorized absence?
Subjects
Judgment
I. LAXMA REDDY A
v.
A.P.S.R.T.C. AND ORS.
NOVEMBER 22, 2007
B
[DR.ARIJITPASAYAT ANDP.SATHASIVAM,JJ.)
Labour Law:
Reinstatement-Claim for fixation of pay taking into C
consideration notional increments-HELD: A simple order of
reinstatement would not entitle the employee to claim the benefit of
notional increments.
The appellant filed a writ petition claiming that in view of the order D
ofreinstatement in service passed by the Labour Court, his pay should
"'- be fixed taking into consideration the notional increments, since for all
practical purposes there would be continuity in service. The single Judge
relying on the decision in Nageswara Rao 's case1, allowed the writ
petition, but the Division Bench of the High Court allowed the writ E
appeal filed by the department. Aggrieved, the employee filed the
instant appeal.
Dismissing the appeal, the Court
HELD: In view of the decisions of the Court in S. Narsagoud and F
_, Abdul Kareem* an order of reinstatement accompanied by a simple
direction for continuity in service would not entitled the employee to
claim benefit of increments unless specifically ordered to that effect.
(Para 6 and 7) [435-A, B, CJ
*APSRTCv. S. Narsagoud, [2003) 2 SCC 212 andA.P. State Road G
Transport Corporation and Ors. v.Adbul Kareem, (2005) 6 SCC 36, relied
on.
I.APSRTC KhammamRegionandAnr. v. P. Nageswara Rao, (2001)4ALD568(DB)
433 H
434 SUPREME COURT REPORTS [2007] 12 S.C.R.
A CIVIL APPELLATE JURISDICTION: Civil Appeal No. 4511 of
2005.
From the Judgment and final Order dated 10.7.2003 of the High
Court of Judicature of Andhra Pradesh at Hyderabad in Writ Appeal No.
1092/2003.
B
V. Sridhar Reddy and Abhijit Sengupta for the Appellant.
D. Mahesh Babu for the Respondents.
The Judgment of the Court was delivered by
c
DR. ARIJIT PASAYAT, J. 1. Challenge in this appeal is to the
order passed by a Division Bench of the Andhra Pradesh High Court
allowing the writ appeal filed by the respondent-Andhra Pradesh State
Road Transport Corporation (in short the 'Corporation') and its
D functionaries.
2. A writ petition was filed by the appellant claiming that since an
award was passed by the Labour Court directing his re-instatement, his
pay has to be fixed after taking into consideration the notional increments.
Learned Single Judge relied on a Division Bench's decision in APSRTC
E Khammam Region andAnr. v. P. Nageswara Rao, (2001) 4 ALD 568
DB and allowed the writ petition.
3. Present respondents filed a writ appeal before the High Court
questioning correctness of the judgment. The High Court noticed that the
F view expressed by the Division Bench in P. Nageswara Rao 's case
(supra) was dis-approved by this Court inA.P.SR. TC v. S Narsagoud,
[2003) 2 sec 212 and, therefore, allowed the writ appeal directing
dismissal of the writ petition.
4. In support of the appeal, learned counsel for the appellant
G submitted that when an order of re-instatement is passed for all practical
purposes there will be continuity in service and, when the re-instatement
is done the pay has to be fixed after taking into consideration the notional
increments which would have otherwise accrued.
H 5. Learned counsel for the respondents on the other hand supported
I. LAXMA REDDYv. A.P.S.R.T.C. [PASAYAT, J.] 435
the order passed by the High Court. A
6. The principles of law on the point are no more res integra. This
Court in S. Narsagoud's case (supra) succinctly crystallized principle of
law in para 9 of the judgment :
"We find merit in the submission so made. There is a difference B
between an order of reinstatement accompanied by a simple
direction for continuity of service and a direction where
reinstatement is accompanied by a specific direction that the
employee shall be entitled to all the consequential benefits, which
necessarily flow from reinstatement or accompanied by a specific C
direction that the employee shall be entitled to the benefit of the
increments earned during the period of absence. In our opinion,
the employee after having been held guilty of unauthorized absence
from duty cannot claim the benefit of increments notionally earned
during the period of unauthorized absence in the absence of a D
specific direction in that regard and merely because he has been
directed to be reinstated with the benefit of continuity in service."
7. The position was re-iterated in A.P. State Road Transport
Corporation and Ors. v. Abdul Kareem, [2005] 6 SCC 36. In view of E
what has been stated by this Court in S. Narsagoud and Abdul Kareem
cases (supra), there is no merit in this appeal which is accordingly
dismissed. There will be no order as to costs.
',
RP. Appeal dismissed.
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