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Supreme Court of India

UNION OF INDIA AND ORS.versusANIL KUMAR AND ORS. ETC. ETC.

Citation
1999 INSC 271
Decided
13 July 1999
Disposal
Dismissed

Holding

The two‑grade pay classification for Senior Scientific Assistants, grounded in the arbitration award, is constitutionally valid, but Rule 6(3)(b) that makes Assistant Foremen en bloc junior to them and to Chief Draughtsmen is arbitrary, discriminatory and therefore struck down.

Summary

The case concerned the classification of pay scales and inter‑se seniority of Senior Scientific Assistants, Assistant Foremen and Chief Draughtsmen in the DRDO after the 1995 Technical Cadre Recruitment Rules created two pay grades for Senior Scientific Assistants based on an arbitration award. The Senior Scientific Assistants argued that the bifurcation was arbitrary, while the Assistant Foremen contended that Rule 6(3)(b) of the Rules, which placed them en bloc junior to the Senior Scientific Assistants and Chief Draughtsmen, was discriminatory. The Central Administrative Tribunal upheld the arbitration‑based two‑grade classification but struck down Rule 6(3)(b) as violative of Articles 14 and 16. The Supreme Court affirmed the Tribunal’s view, holding that the creation of two pay scales for Senior Scientific Assistants was a valid, incentive‑based classification, but the en bloc junior placement of Assistant Foremen lacked any rational basis and was unconstitutional. Consequently, the appeals were dismissed, leaving the classification of Senior Scientific Assistants intact and striking down Rule 6(3)(b).

Issues considered

  • The validity of creating two pay scales for Senior Scientific Assistants on the basis of an arbitration award.
  • Whether Rule 6(3)(b) of the Defence Research and Development Organisation Technical Cadre Recruitment Rules, 1995, which places Assistant Foremen en bloc junior to Senior Scientific Assistants and Chief Draughtsmen, violates Articles 14 and 16 of the Constitution.
  • Whether the classification of posts and pay scales constitutes arbitrary or discriminatory treatment.

Subjects

service lawpay scalesequal pay for equal workArticle 14Article 16classificationarbitration awardsenioritypromotionDRDOtechnical cadre

Judgment

                       UNION OF INDIA AND ORS.                                  A
                                     v.
                    ANIL KUMAR AND ORS. ETC. ETC.

                              JULY 13, 1999

             [K. VENKATASWAMI AND R.P. SETHI, JJ.]                              B

      Service Law :

      Pay Scales -Two pay scales within the same grade created-Creation
of pay scales on the basis of award of the Arbitrator-Different pay scales C
created to give incentive-Held, not discriminatory-Constitution of India-
Articles 14 and 16.

     Clubbing ofpost to reduce number ofpay scales-Validity of-Defence
Research and Development Organisation Technical Cadre Recruitment Rules, D
1995-Rule 6(3)(a)__:(;onstitution of India-Articles 14 and 16.

      Seniori~lubbing of posts-Incumbents of one post having higher
salary placed en bloc junior to incumbents of other posts-Defence Research
and Development Organisation Technical Cadre Recruitment Rules, 1995-
Rule 6(3)(b)-Validity of-Constitution of India-Articles 14 and 16.              E

      The dispute in the present case relates to the pay scales and inter se
seniority between the Senior Scientific Assistants, Assistant Foremen and
Chief Draughtsmen working in various organisations of the Ministry of
Defence. Initially, the Class-III non-gazetted technical, scientific and non-   F
ministerial posts in the Defence Research and Development Organisation
were governed by the Defence Research and Development Organisation
Class III Non-gazetted (Technical, Scientific and Other Non-Ministerial)
Posts Recruitment Rules, 1968. The then existing Organisation was as
under:-
                                                                                G
Scientific Cadre         Technical Cadre             Non-Ministerial Cadre

Senior Scientific        Foreman                     Chief Draughtsman
Assistant                2375-3500                   2000-3200
1640-2900                                                                       H
                                    835
    836                   SUPREME COURT REPORTS                    [1999] 3 S.C.R.

A Junior Scientific           Assistant Foreman           Draughtsman-I
    Assistant-I               2000-3200                   1600-2660
    1400-2300

    Junior Scientific         Chargeman-I                 Draughtsman-II
    Assistant-II              1600~2660                   1400-2300
B   1320-2040

                              Chargeman-11                Draughtsman-ill
                              1400-2300                   1200-2040

C         The Senior Scientific Assistants raised a dispute and claimed a higher
    pay scale than· 1640-2900 on the ground that Assistant Foremen were getting
    a higher pay. scale. The matter was ultimately referred to Arbitration. The
                                                                                      -
    Board of Arbitration accepted the claim of Senior Scientific Assistants and
    Draughtsmen for higher pay scale and it created two grades in the level of
    Senior scientific Assistant and Draughtsman. The proportion of posts to be
D   allocated to the enhanced pay scale was to be proportionate to that obtaining
    in the Foreman category vis a vis the highest grade of Assistant Foreman.

          On the basis of the Award of the Board of Arbitration, 822 posts out
    of the total posts of 1677 of Senior Scientific Assistants were given benefit
    of the higher pay scale of 2375-3500 by the Government. The rest of the
E   posts continued to be in the pay scale of 1640-2900.

          In 1995, the service rules were amended and the Defence Research and
    Development Organisation Technical Cadre Recruitment Rules, 1995 came
    into force. By Rule 6(3)(a) the posts of Senior Scientific Assistant in the pay
    scale of 1640-2900, Chief Draughtsman in the pay scale of 2000-3200,
F   Assistant Foreman, Draughtsman Grade I and Chargeman Grade I were
    clubbed together. The new grade was designated as Senior Technical Assistant
    and was to act as a feeding cadre for promotion to Technical Officer 'A'. The
    pay scale of the newly created grade was to be 1640-2900. By Rule 6(3)(b),
    the incumbents of posts of Assistant Foreman were made en bloc junior to
G   the incumbents of posts of Senior Scientific Assistants and Chief
    Draughtsman. Under FR 23, the employees were given an option to opt for
    their old pay scales.

          Some Senio.r Scientific.Assistants challenged the bifurcation of their
    grade and creation of two pay scales as arbitrary and discriminatory. On the
H   other hand, the Assistant Foreman challenged the validity of Rule 6(3)(b) of
                           U.O.l. v. ANIL KUMR                            837
the Defence Research and Development Organisation Technical Cadre A
Recruitment Rules, 1995 on the ground that their en bloc placement below
the incum~ents of Senior Scientific Assistant and Chief Draughtsman was
illegal and arbitrary. They further claimed that their placement in the newly
created grade of Senior Technical Assistant in the pay scale of 1640-2900
by virtue of Rule 6(3)(a) of the Defence Research and Development
Organisation Technical Cadre Recruitment Rules, 1995 amounted to their B
demotion as their pay scale was higher than that of Senior Scientific
Assistant, Chargeman Grade-I and Draughtsman Grade-I.

      The Government defended the validity of Rule 6(3)(b) of the Defence
Research and Development Organisation Technical Cadre R,ecruitment Rules, C
1995 on the ground that while Senior Scientific Assistant and Chief
Draughtsman could be directly promoted to the next higher post of Junior
Scientific Officer, Assistant Foreman had to be promoted as Foreman before
receiving further promotion to the post of Junior Scientific Officer. However,
it was not claimed by the Government that the qualification of Senior Scientific
Assistant or Chief Draughtsman was higher than that of Assistant Foreman. D

        The Central Administrative Tribunal dismissed the application of the
Senior Scientific Assistant holding that the Award of the Board of Arbitration
was made at the instance of the Senior Scientific Assistant themselves and
thus, was binding in nature. The Tribunal further observed that ifthere is       E
still any dispute, the aggrieved parties may make appropriate representations
before the 5th Pay Commission.

      In respect of the applications filed by the Assistant Foreman, the
Central Administrative Tribunal upholding the validity of Rule 6(3)(a) and
striking down Rule 6(3)(b) of the Defence Research and Development               F
Organisation Technical Cadre Recruitment Rules, 1995 held :-

        (a)   that the clubbing of posts did not amount to reduction in rank
              of the incumbents of Assistant Foreman and Rule 6(3)(a) of the
              Defence Research and Development Organisation Technical
              Cadre Recruitment Rules, 1995 is not arbitrary and G
              unconstitutional.
        (b)   that Rule 6(3)(b) of the Defence Research and Development
              Organisation Technical cadre Recruitment Rules, 1995 insofar
              as it places all Assistant Foreman en bloc junior to Chief
              Draughtsman and Senior Scientific Assistant is arbitrary.    H
    838                    SUPREME COURT REPORTS                     [1999] 3 S.C.R.

A         The Senior Scientific Assistants filed appeals before this Court
    challenging the judgment of Central Administrative Tribunal rejecting their
    application. Union oflndia also filed an appeal before this Court against the ·
    order of the Central Administrative Tribunal quashing Rule 6(3)(b) of the
    Defence Research and Development Organisation Technical Cadre
    Recruitment Rules, 1995.
B
          Dismissing the appeals, this Court

        HELD : 1.1. The Centntl Administrative Tribunal had rightly rejected
  the applications of the Senior Scientific Assistants as it did not find any
  illegality or unconstitutionally in the classification of two grades of the
C Senior Scientific Assistants particularly when the classification was shown
  to have been made on the basis of an. award in which the Senior Scientific
  Assistants themselves were shown to have demanded two pay-scales. The
  Central Administrative Tribunal permitted them to make appropriate
  representation to the 5th Pay Commission which at that time was going into
D the question of revision of pay-scales of the Government staff for resolving
  the anomaly, if any, by giving them the appropriate relief being a body
  comprising of experts aware of the difficulties faced by different sections of
  the services. (850-G-H; 851-A]

          t.2. Where everything was found to be equal a!ld relevant consideration
E being the same, persons holding identical posts should not normally be
    treated differently in the matter of their pay merely because they belong to
    different departments. However, if officers of the same rank perform
    dissimilar functions and the powers and duties and responsibilities of the         --.
    posts held by them vary, such officers cannot be heard to complain of dissimilar
    pay merely because the posts were of the same rank and the nomenclature.
F   The Admini~tration can provide two pay scales in the·same category of posts.
    Making such provision is normally done ltith the object of providing incentives
    to the employees who have no outlets or very limited outlets for promotion
    to higher posts. (848-D-E-H]

G        Kishori Mohan/al Bakshi v. Union of India, AIR (1962) SC 1139;
    Randhir Singh v. Unir.Jn of India & Ors., [1982) 3 SCR 298; La/it Mohan
    Deb & Ors. v. Union of India & Ors., (1973] 3 SCC 862 and Union of India
    & Ors. v. S.S. Ranade, (1995] 4 SCC 462, relied on.

          P. Savita & Ors. v. Union of India & Ors., [1985] Supp. SCC 94;
H   Jagdish Prasad Sinha & Ors. v. Bhagwat Prasad & Ors., (1989] 3 SCC 610;
    --   \




                                         U.0.1. v. ANIL KUMR                            839
             Jaghnath v. Union ofIndia & Anr., [1992] Suppl. 2 SCC 105 and U.P. Rajya A
             Sahakari Bhoomi Vikas Bank Ltd. v. Workman, [1989] Supp. 2 SCC 424,
             distinguished.

                   State of U.P. & Ors., v. J.P. Chauasia & Ors., [1989] 1 SCC 121,
             referred to.
                                                                                               B
                  1.3. Different pay scales were granted to a number of Senior Scientific
             Assistant on the basis of the award at the instance of the Association of the
             Senior Scientific Assistants with the objective of giving them incentives.
             There was no intention of creating any discrimination. (849-G]

                   2.1. Placement of Assistant Foreman along with Chargeman-I and C
             Draughtsman-I in the new level of Senior Technical Assistant does not
             amount to demotion of the Assistant Foreman to the lower level. In the
             restructured set up the Assistant Foremen have been placed en bloc senior
             to incumbents of Chargeman-I and Draughtsman-I. [855-C]
                                                                                               D
                    2.2. The department has attempted to streamline and simplify the
             service rules and in this endeavour, they have decided to reduce the number
             of levels and the number of pay scales. In such a situation when levels and
             pay-scales are reduced, it becomes inevitable to group together some of the
             categories which were earlier kept separate and place them at the appropriate
             levels. In this process, some employees have received substantial benefits as     E
             in the case of Chargeman-1, whereas for other cadres, their existing
             entitlements have in any case been safeguarded. No service rule can satisfy
             each employee and reasonableness should be considered from the stand point
             of justice of the majority. [855-D-G; 856-A-D]
.                  2.3. The Assistant Foremen in the Defence Research and Development          F
             Organisation were earlier categorised as Group 'C' and in the new set up
             as Senior Technical Assistant they have been conferred with Group 'B' non-
             gazetted status which showed that there was no reduction in their status in
             the restructured set up. [857-B]
                                                                                               G
                   3.1. The action of putting the Assistant Foremen en bloc junior to the
             Senior Scientific Assistants was without any rationale or valid basis which
             has rightly been held to be arbitrary being violative of the fundamental rights
             guaranteeing equality in service matters. [859-A]

                  3.2. For a Welfare State, healthy and energetic civil services is a          H
    840                    SUPREME COURT REPORTS                    [1999] 3 S.C.R.

A guarantee for good administrative system entrusted with the governance for
  the establishment of a rule of law. Security of tenure and the service conditions
  of the employee is of paramount consideration to achieve the goals for having
  an effective and vibrant civil service in the society. No Government can resort
  to actions depriving the benefits to a section of the service en bloc which
  admittedly is to their disadvantage. Such en bloc deprivation of the promotional
B avenues and service benefits cannot be sustained when no cogent reasons are
  assigned by the administrative set up. Resort to differential treatment in the
  service can be had· only for achieving the efficiency in the service or any
  other specified objective declared to be attained. No discrimination can be
  permitted only at the whims of the administration or to satisfy another
C section of the civil service. The Union oflndia in this case has not been in
  a position to justify the differential treatment made to the Assistant Foremen
  by putting them en bloc junior to the Scientific Assistants particularly when
  they have all along been found to be enjoying better position and higher
  grade as compared to the Senior Scientific Assistants in the junior pay-
  scale. [859-C-E]
D
         R.K. Sethi and Anr. v. Oil & Natural Gas Commission & Ors., [1997]
    10 sec 616, relied on.

         State of Mahrashtra & Anr. v. Chandrakant Anant Kulkarni & Ors.,
E   [1981] 4 SCC 130 and S.P. Shivprasad Pipal v. Union ofIndia & Ors., [1998]
    4 sec 598, referred to.

          CIVIL APPELLATE JURISDICTION : Civil Appeal No. 7314 of 1997
    Etc. Etc.

         From the Judgment and Order dated 19.8.96 of the Central Administrative
F
    Tribunal Bangalore in O.A. No. 2311 of 1995.

           C.S. Vaidyanathan, Additional Solicitor General, V.C. Mahajan, Raju
    Ramachandran, V.C. Mahajan, Shiv Ram, K.P. G. Kutty, T.A. Khan, Ms. Anubha
    Jain, A.K. Sharma, Mrs. Anil Katiyar, Makarand D. Adkar, S.D. Singh, Vishwajit
G   Singh and S. Ravindra Bhat for the Appearing parties.

          The Judgment of the Court was delivered by

          SETHI, J. Claims, rival claims and counter claims of the Senior Scientific
    Assistants (Junior Grade) in the pay scale of Rs. 1640-2900 the Assistant
H   Foremen in the grade of Rs. 2000-3200 and Chief Draughtsman in the junior
                         U.0.1. v. ANIL KUMR [SETHI, J.]                  ~    841
r   grade of Rs. 200<>-3200 in the Aeronautical Development Establishment (ADE),      A
    Electronics and Radar Development Establishment (EARDE) and Gas Turbine
    Research Institute (GTRI) in the Defence Research and Development
    Organisation (DRDO) before implementation ofDRTC are sought to be settled
    in these appeals which arise out of the orders passed by the Central
    Administrative Tribunals of Bangalore and Bombay Benches.
                                                                                      B
          Appellants in Civil Appeal Nos. 7316-7317 /97 had filed OAs 2001 &
    2041/95 in the Central Administrative Tribunal, Bangalore Bench , praying for
    the issuance of direction to declare that their inclusion as Senior Scientific
    Assistants in the pay scale of Rs. 1640-2900 appointed upto 25-8-1995 in the
    grade IV of the DRDO Technical Cadre Research Recruitment Rules was               C
    arbitrary and discriminatory. They prayed for a further direction to the
    respondents to include all such SSAs also in grade II of category III alongwith
    Foremen and SSAs (senior grade) in pay-scale of Rs. 2375-3500 and for
    granting them all the consequential benefits. The applications are shown to
    have been filed on behalf of the Scientific Workers Association which was
    claimed to be the recognised association by the Government of India.              D

           Civil Appeal No. 7315/97 has also been filed by and on behalf of the
    Scientific and Technical Workers Association through Shri P.N. Choudhary
    against the judgment and order of the Central Administrative Tribunal, Bangalore
    Bench, passed in O.A. 2311/95 dated 19-8-1996. The aforesaid Original E
    Application was filed by the Assistant Foremen in the pay-scale of Rs. 2000-
    3200 serving in the Defence Research and Development Organisation. They
    had been brought over to the newly designated level of Senior Technical
    Assistant (STA) as per the Defence Research and Development Organisation
    Technical Cadre Recruitment Rules, 1995 (DRTC Rules 1995). Their plea was
    that their placement at the level of STA in the scale of pay of Rs. 1640-2900 F
    alongwith Senior Scientific Assistants (SSAs), Chief Draughtsman (CDM),
    Chargeman, Grade-I, (CM-I) and Draughtsman Grade-I (DM-1) was arbitrary
    and unconstitutional. They specifically challenged Rule 6(3)(b) of the DRTC
    Rules, 1995 which had placed them en bloc junior to the incumbents of the
    erst;vhile cadre of Chief Draughtsman and Senior Scientific Assistants while G
    determining their seniority in the new grade of STA. They prayed for their
    placement at a level higher than that of the SSA, Chargeman Grade-I,
    Draughtsman Grade-I by assigning a pay--scale either equivalent to or higher
    than the scale in which they were drawing pay as Assistant Foremen. Their
    application was disposed of by the Tribunal holding that the rule 6(3)(b) of
    the J?TRC Rules, 1~95 in so far as it sought to place the Assistant Foremen H
    842    •                SUPREME COURT REPORTS                    [1999] 3 S.C.R.

A   en bloc junior to CDMs in the scale of pay of Rs. 2000-3200 and SSAs in the
    scale of pay of Rs. 1640-2900 was discriminatory and liable to be struck down.
    The Tribunal further directed the Department to amend rule 6(3 )(b) of the
    DRTC Rules, 1995 to provide that the inter se seniority of the incumbents of
    the posts of CDMs, SSAs and also Assistant Foremen shall be drawn on the
B   basis of the length of their regular service in their original relative seniority
    in such grades. It was further directed that the applicants therein be ranked
    en bloc senior to the incumbents of the posts' of Draughtsman (Grade-I) and
    Chargeman Grade-I. Directions for promotion from the level of the STA to the
    Technical Officer (A) was also ordered to be carried out.
                                                                                        "'""'-
C         Civil Appeal No. 7314/97 is an appeal filed by the Union of India against
    the orders passed by the Central Administrative Tribunal, Bangalore Bench,
    in Original Application No. 2311/95 quashing Rule 6(3)(b) of the DRTC Rules,
    1995.

          Civil Appeal Nos. 3338/96 and 3339/96 have been filed against the
D   orders of the Central Administrative Tribunal, Bombay Bench, by which
    various applications filed by the Scientific Staff Association and its Members
    were dismissed with the observation that "the question of relativities in the
    pay-scale of different cadres, in the present case between technical and
    scientific cadres of the ORD and DGI is essentially a matter for expert bodies
E   and even after implementation of the award, if there are any disputes still to
    be resolved, they are required to be resolved by making appropriate
    representations to the Vth Pay Commission which is at present going into the
    question of revision of pay-scale of Central Government staff." The petitioners
    had made similar prayers projecting the grievances of the SSAs (Junior Grade)
    as were considered and noticed by the Bangalore Bench of the Central
F   Administrative Tribunal. The Bombay Bench of the Central Administrative
    Tribunal noticed that the total number of posts of SSAs in DRDO was 1677
    of which 822 posts had been given the benefit of higher pay-scale on the
    basis of an award passed keeping in view the length of service of the SSAs
    on the basis of the Arbitration Award.

G        Before amendment of the Rules in 1995 the promotion to the post 't>f
    JSO( Junior Scientific Officer) was made out of the SSA, Foremen and Chief
    Draughtsman. The then existing organisation was as under :-

                                      Scientist 'B'

H                                         JSO
                           U.0.l. v. ANIL KUMR [SETHI, J.]                       843
               SSA                      Foreman               Chief Draughstman        A
'
            2375-3500                   2375-3500                  2375-3500

             1640-2900                                             2000-3200

              JSA-I                  Asstt.Foreman               Draughtsman-I
                                                                                       B
             1400-2300                  2000-3200                  1600-2660

              JSA-11                  Chargeman-I               Draughtsman-II

             1320-2040                  1600-2660                  1400-2300
                                                                                       c
                                      Chargeman-II              Draughtsman-III

                                        1400-2300                  1200-2040

            After amendment the posts of SSAs in the grade of Rs. 1640-2900,
      Chief Draugahtsman (CDM) in the grade of Rs. 2000-3200 and Assistant D
      Foreman were clubbed together and designated as Senior Technical Assistants
      in the pay-scale of Rs. 1640-2900 being the feeding cadre for promotion
      (TOA). Whereas the grievance of the Senior Scientific Assistant in the pay-
      scale of Rs. 1640-2900 was that their placement in the junior grade was
      unconstitutional being violative of Articles 14 and 16 of the Constitution, the E
      Assistant Foremen felt that their en bloc placement as junior to the SSAs

-     in the grade of Rs. 1640-2900 was arbitrary and illegal. As noticed earlier the
      applicants specifically challenged the constitutional validity of Rule 6(3)(b) of
      the DRTC Rules, 1995. After the amendment of the Rules and creation of the
      posts of Senior Technical Assistant being eligible for promotion to TOA, their
      grievance in so far as it related to promotion has lost all its significance. F
      However, ifthe SSAs in the grade of Rs. 1640-2900 are granted relief as prayed
      for by giving them the grade of Rs. 2375-3500 the position would be totally
      different as they would be deemed to have automatically been promoted as
      TOA being eligible for promotion to TOB. It is, therefore, necessary. to
      adjudge their claims first before deciding the other appeals.
                                                                                       G
_..         The erstwhile SSAs, SS grade II have submitted that the bifurcation of
      SSAs cadre with effect from 1992 is arbitrary as there does not exist any
      rational for the classification . It is further submitted that the creation of two
      pay-scales in the grade of SSAs was imaginary and artificial. All SSAs are
      alleged to be performing the same nature of work. Referring to the job H
    844                    SUPREME COURT REPORTS                    (1999] 3 S.C.R.

A   description part, it is contended that there is no distinction whatsoeyer
    between the differen~ levels or categories of SSAs. Even before the arbitration
    it was pointed out that Government had virtually accepted the case of SSAs
    for parity of pay~scales. There is no legal basis for putting the .SSAs in
    different categories i.e. Technical Officer 'A' and Senior Technical Assistant
    respectively in the matter of eligibility for promotion. It is alleged that the
B   Government has admitted that the higher scale of SSAs is a non-functional
    selection grade which would not justify the split up of the SSAs for the
    purpose of further promotion under the amended Rules of I 995. The splitting
    up is alleged to be violative of Articles 14 and 16 of the Constitution oflndia.
    They have also relied upon the doctrine of ' equal pay for equal work.'
C   According to them an anomaly had crept in the pay-scale allowed to the SSAs
    with effect from 1-1-1973 consequent upon the implementation of the
    recommendation of the 3rd Pay Commission. It was contended that the maximum
    of the pay-scale of the SSAs and Foremen used to be essentially equal and
    the maximum of the Assistant Foreman scale was less than that of the SSAs
    till the 2nd Pay Commission. They relied upon the letter dated 30-8-1973
D   issued by the R&E Headquarters indicating that the matter had been taken
    up with the higher authorities. Consequently, the matter was referred to the
    Expert Classification Committee and ultimately to the Arbitration in terms of
    JCM Scheme. After the award was submitted the order impugned before the
    Central Administrative Tribunal was issued. The Arbitration Award had
E   recommended for its implementation from 22-9-1982 but the Government issued
    orders for its implementation only with effect from 1-1-1988.

           The appellant~Association in their application before the Central
     Administrative Tribunal had assailed the award passed by the Arbitration and
     the order dated 11-11-1988 issued by the Government in consequence thereof.
F ., It was submitted that the impugned award and the order were both vitiated
     on account of alleged unreasonable classification, discrimination and arbitrary
     action of the respondent.

          The prayer itself appears to be self-contradictory. If the award of the
G   Arbitration was set aside, there was not question of giving any relief to SSAs
    (Junior Grade) as admittedly the higher grade for which they had staked claim
    was given on the basis of the recommendation made by the Board of
    Arbitration who had given the award in consequence of the reference made
    at the instance of the SSAs Thus the setting aside of the award in no. case
    benefited the appellants. Otherwise, also it is evident that the reference to the
H   Arbitration was made at the instance of the scientific staff employees in
                          U.0.1. v. ANIL KUMR [SETHI, J.]                      845
     various Directorates of the Ministry of Defence who had claimed their A
     entitlement to the pay-scales and grades structments namely, level I-Rs. 380-
     560, level II-Rs. 425-700, level III Rs. 550-900 level IV Rs. 840-1040 and if so
     in what promotion.

           It was alleged before the Board of Arbitration that the duties and
     responsibilities of the Senior Scientific Assistants were not less than those B
     of the Foremen. However, while the Senior Scientific Assistants were in the
     pay scale of Rs. 840-1040. The educational qualifications of the scientific staff
     were stated to be higher than that of the Foremen. They alleged that promotion
     avenue for both the categories being the same i.e. Junior Scientific Officer,
     there was no justification for not giving them the same pay scale as was being C
     given to the Foremen. After considering all pros and cons of the matter, the
     Board of Arbitration passed the following award :-

             I.   (a) The demand of the staff side for the grant of pay scale of
                  Rs. 840-1040. to Senior Scientific Assistants and Draughtsman
                  working in the Research & Development Organisation and the D
                  Directorate General of Inspection (both in the Ministry of
                  Defence) is accepted. This pay will be addition to those which
                  are already admissible to these categories in the said two
-+                organisations.

                  (b) The proportion of posts to be allocated in the above            E
                  mentioned new pay scale should broadly bear the same
                  proportion as that obtaining at present in the foremen category
                  vis a vis the highest grade of Assistant Foreman in the said
                  organisation.

                  (c) The demand for introduction of the scale of pay of Rs. 840-     F
                  1040 in respect of the Draughtsman working in other organisations
                  of the Ministry of Defence is rejected.

            2.    The demand of the staff side for the introduction of a new pay
                  scale of Rs. 700-900 to be made available to storekeeping staff
                  employed in all the Directorates of the Ministry of Defence G
                  (wherever not applicable at present) is accepted. The proportion
                  of posts in this new scale of pay shall be 20% of the post in the
                  next lower grade.
            3.    The demand of the staff side of the introduction of the pay scale
                  of Rs. 380-560 as Grade I for Civilian Motor Drivers working in H
    846                         SUPREME COURT REPORTS               [1999] 3 S.C.R.

A                  the various Directorates of the Ministry of Defence is accepted.
                   This will be treated as a selection grade and 20% of the posts
                   of Drivers in the scale Rs. 320-400 will be placed in the grade
                   in Rs. 380-560.
              4.   This Award will come into operation with effect from the 22nd
B                  September, 1982."

         Acting upon the award of the Arbitration the Government of India vi de
    Order dated 11.11.1988 upgraded the post of Scientific Assistants in RDO
    and DGI to the extent as under :-

c                        Existing     Revised       No. of Post of
                         Scale        Scale         SSAs to be given
                                                    the Scale in Col(ii)


      (i)                (ii)         (ill)
D
                                                    InDRDO          InDGOA

      As per 3rd         Rs.550-      Rs.840-

      pay                900          1040
E
      Commission's

      Report

      As per 4th         Rs.1640-     Rs. 2375-     822             101
F     Pay                2900         3500
      Commission's

            It was specifically mentioned that the upgradation of the post was on
G the basis of the award of the Arbitration and as per annexures attached
    therewith. The recruitment rules were to be amended suitably in due course.
    It is on record that the total number of post of SSAs in the DRDO were 1677
    of which 822 posts were given the benefit of higher pay scales. It is not
    denied before us that the upgradation of post and grant of higher pay scales
    had been done on the basis of the experience and length of service. The
H   Central Administrative Tribunal was, therefore, justified in holding :
                    U.0.1. v. ANIL KUMR [SETHI, J.]                       847
       "It is not disputed that the claim of SSAs who belong to scientific A
       cadre is for parity with the technical cadre to which Asstt. Foreman
       and Forman belong. It was in this background that after protracted
       deliberations and negotiations the matter stood referred to Board of
       Arbitration for a final decision and the Board of Arbitration decided
       to give the higher revised scale to the Sr. SSAs in the same proportion B
       on the date of award as that between Foremen and Assistant Foreman
       on Technical side in the concerned organisation i.e. DRDO and DBI.
       According to us, although Savita's judgment proceeds on the
       undiluted doctrine of equal pay for equal work, there has been further
       evaluation of the doctrine as revealed by the Supreme Court judgment
       in Jaghnath v. Union of India., It is now well settled that several C
       factors are required to be gone into before fixing the pay scale and
       one of the relevant factors is the historical background in which a
       particular decision relating to pay fixation is taken. In our view, keeping
       the ratio in Jagannath' s case and dispute in view the background of
       the whole dispute and keeping in view the nature of the JCM scheme D
       in which the staff association as well as individual members of staff
       are required to be held to the binding nature of the arbitration award
       with its modified date of implementation as confirmed by Supreme
       Court, the Tribunal should be chary before unsettling settled issues,
       especially after protractred litigation. There should be a finality to
       such disputes. The question relativities in the pay scales of different E
       cadres, in the present case between kchnical and scientific cadres of
       the DRD and DGI is essentially a matter for expert bodies and even
       after the -implementation of the award, if there are any disputes still
       to be resolved, they are required to be resolved by making appropriate
       representations to the 5th Pay Commission which is at present going F
       into the question of revision of pay scale of Central Government Staff.
       We are, therefore, not satisfied that this is a fit case in which we
       should interfere. We have already given the reasons as to why the
       various contentions raised by the applicants in support of their prayers
       cannot be accepted on a survey of administrative legal grounds." G

      A Constitution Bench of this Court in Kishori Mohan/al Bakshi v.
Union of India., AIR (1962) SC 1139 while dealing with alleged violation of
Article 14 of the Constitution of India on account of the grant of two pay-
scales to Income Tax Officers allegedly doing the same kind of work, held that
incremental scales of pay can be validly fixed dependent on the duration of H
    848                   SUPREME COURT REPORTS                    [1999) 3 S.C.R.

A an officer's service, and in that event the abstract doctrine of 'equal pay for
    equal work' cannot be invoked with the aid of argument of the claimants
    therein the Court held that :-

            "It is fantastic to suppose that Article 16 of the Constitution forbids
            the creation of different grades in the government service; that is
B           what the petitioner's argument amounts to. The contention that Article
            16 has been violated because Class II Income Tax Officers are not
            eligible for promotion to higher posts, like the post of Commissioners
            and Assistant Commissioners directly is, therefore, wholly unsound."

           While dealing with the Preamble of the Constitution and Articles 14, 16
C   and 39(d) of the Constitution, this Court again in Randhir Singh v. Union of
    India & Ors., [1982] 3 SCR 298, held that whereas it was true that equation
    of posts and equation of pay were the matters for the Executive Government
    and expert bodies like the Pay Commission and not for the Courts but where
    everything was found to be equal and relevant consideration being the same,
D   persons holding identical posts should not normally be treated differently in
    the matter of their pay merely because they belong to different departments.
    If officers of the same rank perform dissimilar functions and the powers and
    duties and responsibilities of the posts held by them vary, such officers
    cannot be heard to complain of dissimilar pay merely because the posts were
E   of the same rank and the nomenclature. While dealing with the gradation in
    the service the Court declared that "it is well known that there can be and
    there are different grades in a service, with varying qualifications for entry
    into a particular grade, the higher grade often being a promotional avenue for
    officers of the lower grade. The higher qualifications for the higher grade,
    which may be either academic qualification or experience based on length of
F   service, reasonably sustain the classification of the officers into two grades
    with different scales of pay. The principle of equal pay for equal work would
    be an abstract doctrine not attracting Article 14 if sought to be applied to
    them."

G         Again iry La/it Mohan Deb & Ors. v. Union of India & Ors., [1973] 3
    SCC 862 the Court considered the position of Assistants in Civil Secretariat,
    Tripura as against the position of Assistants (Selection Grade) and held that
    the Administration can provide two pay scales in the same category of posts.
    Making such a provision is normally done with the object ·of providing
    incentives to the employees who have no outlays or very limited outlets for
H   promotion to higher posts. In this context it was observed :
                     U.O.I. v. ANIL KUMR [SETHI, J.]                     849
       "It is well recognised that a promotion post is a higher post with a A
       higher pay. A selection grade has higher pay but in the same post.
       A selection grade is intended to ensure that capable employees who
       may not get a chance of promotion on account of limited outlets of
       promotion should at least be placed in the selection grade to prevent
       stagnation on the maximum of the scale. Selection grades are, therefore,
       created in the interest of greater efficiency."                          B
      To the same effect is the judgment of this Court in Union of India &
Anr. v. S.S. Ranade, [1995] 4 SCC 462 wherein the Court held:-

       "In the present case, an element of selection is involved in granting
       selection grade because there is no automatic promotion to the C
       selection grade pay scale. But this factor is not decisive. In the
       present case also, as in the above cases, Selection Grade posts are
       created entirely for the purpose of granting some relief to those who
       have very limited avenues of getting promotion to a higher post. That
       is why a higher pay or pay scale is granted in the same post. Thus, D
       by its very nature, a selection grade post cannot be considered as a
       higher post for the purposes of Rules 9."
      In support of the claim of the appellants Shri Raju Ramachandran, the
learned senior counsel relied upon the judgment of this Court in P. Savita &
Ors. v. Union of India & Ors., [1985] Supp. SCC 94 and submitted that the E
classification of the Senior Scientific Assistants in the same department
merely on the basis of the seniority was unconstitutional. The submission
though attractive on the face of it yet is without substance when examined
in depth. In that case, the Court was considering the classification of Senior
Draughtsman holding identical posts discharging identical duties in the same
department and where the selection to the higher scale was based on seniority- F
cum-fitness instead of merit-cum-seniority. The Court agreed with the
conclusions arrived at in the Randhir Singh 's case (supra) and finding of
facts of the case before it different held, "for the purpose of the case on hand,
it is sufficient to note that classificittion between two groups of Senior
Draughtsman is without any basis." As noticed earlier, in the instant case, G
                            a
pay-scales were granted to number of Senior Scientific Assistants on the
basis of the award at the instance of the appellant-association with the
objective of giving them incentives. There was no intention of creating any
discrimination as has been argued before us. The reliance of the learned
counsel for the appellant on the judgment of this Court in U.P. Rajya Sahakari
Bhoomi Vikas Bank Ltd v. Workmen, [1989] Supp. 2 SCC 424, is also H
                                                                                           ..~




    850                     SUPREME COURT REPORTS                       [1999] 3 S.C.R.

A   misplaced inasmuch as in that case this Court had considered the validity of
    the award of the Industrial Tribunal which had found on facts that the
    workmen doing similar type of work were entitled to equal pay. The Court
    observed thus :-

            "The Tribunal's finding that both the groups were doing .the same
B           type of work has rightly not been challenged by the employer-Bank
            as it is a pure finding of fact. If irrespective of classification of junior
            and senior groups, the same work was done by both, the principle of
            equal pay for equal work is definitely attracted and on the finding of
            fact the Tribunal was justified in applying the principle to give the
            same benefit to those who had been left out. We see no justification
c           in the stand of the employer-Bank and the challenge is without merit.
            The appeal is accordingly dismissed. The parties are directed to bear
            their own costs in this Court."

          The judgment of this Court in Jagdish Parsad Sinha & Ors. v. Bhagwat
D   Prasad & Ors., [1989] 3 SCC 610 does not either help the appellants. In that
    case the Court held the bifurcati0n in the validly constituted cadre merely for
    providing equal promotional avenues to those beyond eligible zone in the
    undivided cadre unconstitutional being violative of Article 14 and 16 of the
    Constitution. Such is not the position in the present case.

E        In Jagannath v. Union ofIndia & Anr., [I 992] Supp. 2 SCC 105 relied
   upon by the appellants the Court held contrary to what has been argued
   before us. Relying upon its earlier judgment in State of U.P. & Ors. v. J.P.
   Chaurasia & Ors. [1989] 1 SCC 121 it was held that the classification can be
   based on some qualities or characteristics of persons grouped together and
   not in others who are left out. Those qualities or characteristics must, of
F course, have a reasonable relation to the object sought to be achieved. In
 . service matters, merit or experience could.be the proper basis for classification
   to promote efficiency in the administration. It was further observed that the
   quality of work performed by persons of longer experience was superior than
   the work of new comers.
G
           We are, therefore, of the opinion that the Central Administrative Tribunal
    had rightly rejected the applications of the appellants as it did not find any
    illegality or unconstitutionality in the classification of two grades of the SSAs
    particularly when the classification was shown to have been made on the
    basis of an award in which the SSAs themselves were shown to have demanded
H   two pay-scales.
                         U.0.1. v. ANIL KUMR [SETHI, J.]                    851
          However to give a finality to the dispute raised by the appellants, the A
    Central Administrative Tribunal permitted them to make appropriate
    representation to the 5th Pay Commission which at that time was going into
    the question of revision of pay-scales of the government staff for resolving
    the anomaly, if any, by giving them the appropriate relief being a body
    comprising of experts aware of the difficulties faced by different sections of
    the services.                                                                  B

           In the other set of appeals, the respondents Assistant Foremen in the
    Defence Research and Development Organisation (DRDO) approached the
    Central Administrative Tribunal with prayer to declare Rule 3(a) and 3(b) of
    the DRTC Rules 1995 as illegal and unconstitutional, with a further direction C
    that the rule making authorities were bound to place them in an appropriate
    newly designated post either in the pay-scale of Rs. 2000-3200 or of the higher
    pay-scale and not in the lower pay-scale was done vide the impugned rules.

-   They contended that the Defence Research and Development Organisation
    under the control of Ministry of Defence, the Class III non-gazetted technical
     scientific and non-ministerial posts were earlier governed by the Recuritment D
     Rules issued under SR 230 called "Defence Research and Development
    Organisation Class III non-gazetted (technical scientific and other non-
    ministerial) post Recruitment Rules 1968'', dated 26.6.1968. The cadre of Chief
    Draughtsman, Draughtsman Grade I came under non-ministerial cadre and the
    cadre of Chargeman Grade I, and Assistant Foreman under the techr:cal E
                                                                                     ,4
    cadre. The Cadre of Senior Scientific Assistance came under the scier 1tific
    cadre. The cadres of Senior Scientific Assistants on the scientific cadre and
    Chargeman Grade I and Draughtsman Grade I on the non-ministerial cac. re had
    the pay-scales lower than that of pay-scales of the Assistant Foremai, ani.
    the cadre of Chief Draughtsman on the non-ministerial cadre had the same
     pay-scale of Rs. 2000-3200 as that of the cadre of Assistant Foreman on the F
    technical cadre. Jn the technical cadre there were four stages and the post of
    Foreman was the highest on the technicai cadre. On the non-ministerial cadre
    there were 5 stages and the post of Chief Draughtsman was the highest post
     in the non-gazetted cadre Class III post under the 1968 Rules. According to
    the Assistant Foreman, the official joining the service as Chargeman Grade G
    II or Draughtsman Grade II had to pass through three stages to reach the
    cadre of Foreman or Chief Draughtsman. On the contrary, in the scientific
    cadre there were only two stages to reach the post of Senior Seientific
    Assistants. The promotional prospects in so far as the post held on the
    technical cadre and non-min~sterial cadre were concerned, was very less as
    compared to the posts in scientific cadre under the said rules. The promotions H
    852                    SUPREME COURT REPORTS                      [1999] 3 S.C.R.

A   to the post of JSO were made on the basis of the common seniority of the
    posts of Chief Draughtsman, Foreman and Senior Scientific Assistants as per
    the SR0-166 dated 17-6-1985. The ration fixed for different categories was
    Chief Draughtsman 4%. Foreman 12% and Senior Scientific Assistants 84%
    for the purpose of promotion to the cadre of JSO. The said percentage was
    revised vide SR0-13E dated 8-11-1988 by fixing as Chief Draughtsman 7%,
B   Foreman 10% and Senior Scientific Assistants 83% which according to the
    Assistant Foreman pennitted the creating in of anomalies in the rules providing
    very meagre chances of promotion to the officials holding post on the technical
    and non-technical ministerial cadres. The Defence Research and Development
    Organisation, Junior Scientific Officers Recruitment Rules 1980 vide SRO 81
C   dated 8-3-1980, provided the post of Foreman in the pay-scale of Rs. 840-1040
    by making it a feeder cadre for promotion to the post of JSO in the pay-scale
    of Rs. 650-1200. While providing promotional avenues on the technical and
    non-technical cadres the authorities were stated to have taken into
    consideration that the said cadre would have lessor credential and experience
    on the scientific cadre and as such the post having the pay scale of Rs.840-
D   1040 and Rs. 700-900 as per the 3rd Pay Commission were treated as feeder
    cadre for the promotion to the cadre of JSO. Union of India then framed the
    new rules of 1995 vide SRO 177 dated 16-8-1995 which were made effective
    from 26-8-1995. The rules were apparently framed to restructure the scientific
    and technical cadres and to create new organistation service called 'DRTC'
E   with the intention to rationalise the cadre structure, to remove disparity in the
    career prospects by providing reasonable promotional opportunities to group
    B and C scientific and technical staff in the DRDO Organisation. It was
    however alleged that the amended rules provided several anomalies detrimental
    to the rights and interest of the Assistant Foreman which affected their status
    and service conditions adversely. It was submitted that the cadre of Senior-
F   Scientific Assistant had the pay-scale of Rs. 1640-2900 and there were as
    many as 1072 posts in the said cadre. Similarly, in the cadre of Chief Draughtsman
    the pay-scale was Rs.2000-3200 being equivalent to the pay-scale of the
    Assistant Foreman. The cadre of Draughtsman Grade I and Chargeman Grade
    I which were included in the Rule 3(a) to have the scales lower than that of
G   the pay-scales of Assistant Foreman. The amended rules further provide that
    the existing employees holding posts shown in Schedule I attached therewith
    shall have rights to opt for their old pay-scales. The Assistant Foremen made
    representations against the alleged injustice done to them submitting that
    having the pay-scale of Rs.2000-3200 they have been put in long period of
    service to reach the said post having equivalent or higher qualification than
H                  ' cadres namely, SSAs, Chargeman Grade I, Draughtsman
    that of the other
                     U.0.1. v. ANIL KUMR (SETHI, J.]                        853
Grade I and the Chief Draughtsman. It was contended that the status of the A
representationist as compared on the basis of the pay-scales was equivalent
to that of the JSO and as such their status could either be made higher or
eqll;ivalent to that of the Senior Scientific Assistants, Draughtsman Grade I,
and Chargeman Grade II. The cadre of SSAs and Chief Draughtsman was
bifurcated into two groups based on their pay-scales as the purpose of the B
new tules was stated to be for merging the cadres and creating a new cadre
on the basis of the pay-scale which the officials were drawing at the time of
framing of the said rules. No discrimination infringing the rights and status
of Assistant Foreman could be made particularly when it deprived them
promotional avenues. The official working as Senior Scientific Assistants in
the pay-scale of Rs. 1640-2900 and Draughtsman Grade I and Chargeman C
Grade I in the pay-scale of Rs. 1640-2900 could not be equated and treated
at par with the cadre of Assistant Foreman as was intended to be done vide
Rule 3(b). They prayed for :-

           "Quash the impugned Rules 3(a) and 3(b) of the Reference Research D
       & Development Organisation Technical Cadre Recuritment Rules 1995,
       as per SR0-177 dated 16-8-1995, in so far as they relate to inclusion
       and merger of the cadre of Assistant Foreman alongwith the cadres
       of Chief Draughtsman, Senior Scientific Assistant, Chargeman Grade
       I and Draughtsman Grade I and placing the applicants in Grade I of
       category III Schedule II in the pay scale of Rs. 1640-2900, vide Annexure   E
       'A6' by appropriate order or direction holding that the same are
       unconstitutional and ultravires the Constitution of India.

           Issue appropriate orders or direction directing the respondents to
       frame appropriate rules to make provisions for proper placement of the
       cadre of Assistant Foreman in the DRTC Rules, 1995, vide Annexure F
       'A6' based on the qualification, experience and the pay scale and
       place the cadre of Assistant Foreman over and above the cadres of
       Chief Draughtsman, Senior Scientific Assistant, Chargeman Grade I
       and Draughtsman Grade I, assigning the pay scale either equivalent
       to or higher than the pay scale in which the applicants are presently G
       working.

           Issue appropriate orders or direction directing the respondents to
       maintain the seniority of the cadre of Asstt. Foreman in the newly
       designated post on the basis of the pay scale which they are drawing
       at present.                                                                 H
    854                    SUPREME COURT REPORTS                   (1999] 3 S.C.R.

A        As already noticed the applications filed by the Assistant Foremen
    were disposed of with the following directions/observations :-

           (I)   We hold that Rule 6(3)(a) of the Defence Research and
                 Development Organisation Technical Cadre Recruitment Rules,
                 1995 is not arbitrary or unconstitutional and is not liable to be
                                                                                     -
B                struck down.
           (2)   We strike down Rule 6(3)(b) of the DRTC Rules, 1995 in so far
                 as it seeks to place all Assistant Foremen en bloc junior to
                 CDMs in the scale of Rs. 2000-3200 and the SSAs in the scale
                 of'Rs. 1640-2900 and direct the department to effect necessary
c                amendment to this part of the rule before considering and
                 effecting promotions to the next higher level as stated in the
                 proceeding para."
           Rule 6(3)(a) and (b) of 1995 Rules provided:-

              "6(3)(a) All persons holding the posts of Chief Draughtsman and
D          Senior Scientific Assistant in the pay scales of Rs. 2000-3200 and Rs.
           1640-2900 respectively, the Assistant Foreman, Draughtsmen Grade I
           and Chargeman Grade-I shall be placed in grade-I of Category III.
               (b) The inter se seniority of the incumbents of the posts of Chief
           Draughtsman and Senior Scientific Assistant shall first be drawn on
E          the basis of length of their regular service in their respective grades
           subject to maintenance of their original relative seniority in such
           grades and they shall rank en bloc senior to the incumbents of the
           posts of Assistant Foreman."
          It was argued on behalf of the Assistant Foreman that their placement
F in the level of STA vide 1995 rules was in the nature of demotion and
    amounted to infliction of a penalty because they were allowed post of STA
    in the pay scale of Rs. 1640-2900 whereas before amendment they were
    drawing the pay-scale of Rs. 2000-3200. It was further contended that the
    effect of the new rules was to demote them to the lower level of Chargeman
G   Grade I which in fact was the feeding cadre. It was argued that the mere fact
    that they were given the option to opt for their old pay scales under FR 23
    could not cure the illegality. They had prayed for being equated with Junior
    Scientific Officers. Dealing with this aspect of the matter the Central
     Administrative Tribunal held :-

H           "There is no substance in the argument that placement of the Assistant
             U.0.1. v. ANIL KUMR [SETHI, J.]                     855
Foreman at the level of STA in the scale of Rs. 1640-2900 amounts to A
reduction in rank and is in the nature of a penalty. The Assistant
Foreman did not enjoy a status higher than that of the SSA or the
Chief Draughtsman. Of Course, they were superior to Chargeman-I,
which was the feeder cadre for promotion to Assistant Foreman and
also to that of Draughtsman-I which was equivalent to Chargeman-1, B
which was the feeder cadre for promotion to Assistant Foreman and
also to that of Draughtsman-I which was equivalent to Chargeman-1.
We do not, however, agree that placement of Assistant Foreman
alongwith Chargeman-I and Draughstman-I in the new level of STA
virtually amounts to demotion of the Assistant Foreman to the lower
level. In the restructured set up, the Assistant Foreman have been C
placed en bloc senior to the incumbents of Chargeman-1 and
Draughtsman-I. There is no requirement that the earlier hierarchical
structure should be maintained for all time to come. The department
has attempted to streamline and simplify the service rules and in this
endeavour, they have decided to reduce the number of levels and the
number of pay scales. While effecting this re-organistation they had D
retained the scale of Rs.2375-3500 which was given to sections of
CDMs and SSAs as per the Award of the Board of Arbitration and
placed the JSOs in the same bracket but en bloc senior to the erstwhile
Foremen SSAs and CDMs. The decision to retain this scale while
omitting scales of Rs. 2000-3200 seems to be based on rational E
considerations and respondents have denied the allegation of any
bias in favour of SSAs. In any case, the department is competent to
take decision to reduce the number of levels and pay-scales. They are
also competent to decide as to which scale should be retained and
which should be omitted, so long as the same is not arbitrary, we
cannot, therefore, fault the department for retaining the sale of Rs. F
2375-3500 and that of Rs. 1640-2900 while omitting the scale of Rs.
2000-3200. There is a decision to reduce the number of pay scales and
the scale of Rs. 2000-3200 has been omitted and the level of STA has
been constituted in the scale of Rs. 1640-2900. In view of this position,
we cannot direct the Government to re-introduce the scale of Rs. 2000- G
3200 to accommodate the applicants when in any case they have been
given an option to retain this scale under FR 23. In such situation
when levels and pay-scales are reduced, it becomes inevitable to
group together some of the categories which were earlier kept separate
and place them at the appropriate levels. Tlie department has
endeavoured to do so taking into account the existing pay scales, H
    856                   SUPREME COURT REPORTS                     [! 999] 3 S.C.R.

A          promotion prospects etc. In this process, some employees have
           received substantial benefits as in the case of Chargeman-I, whereas
           for other cadres, their existing entitlements have in any case been
           safeguarded. The level of satisfaction of some employees like
           Chargeman-I will naturally be higher than the others life the Assistant
           Foreman but according to the department, the promotional
B          opportunities have expended at all levels and the AFMs have been
           kept en bloc senior to Chargeman-1. We may in this connection refer
           to the second proviso to Rules 8(1) of 1995 Rules which provides that
           if a junior is eligible for assessment having completed minimum
           residency period all individuals senior to him shall also be eligible for
c          assessment. In the new structure, all erstwhile AFMs have been
           placed en bloc senior to the feeder cadres and the new placement,
           therefore, does not in any way adversely affect the interest of the
           AFMs as compared to their earlier position vis-a-vis Chargeman,
           Grade-I. No service rule can satisfy each employee and reasonableness
           should be considered from the stand point of justice to the majority.
D          As such, grouping the AFM, with CM-I in the new set up while
           placing AFM, en bloc senior to CM-I and permitting the AFM to
           retain the old pay scale of Rs. 2000-3200 under FR 23 does not amount
           to demotion of the A.F.M. as alleged.

                Promotions to the level of STA will take place from the new cadre
E
            of Technical Assistant 'B' in the scale of Rs. 1400-3200. There is no
            problem in future as the officials will get promotions to the scale of
            Rs. 1640-2900 from that of the scale of Rs. 1400-2300. As regards
          . existing incumbents of the AFMs, they have been given an option
            under FR 23 to retain their old pay scale. The department have
F           submitted a memorandum dated 25.6.1996 where they have stated that
            they have apprised the Fifth Central Pay Commission about the old
            system of promotion as well as about the new scheme and that
            incumbents in the pay scale of Rs. 2000-3200 are likely to get equivalent
            replacement of scales as persona.I to them whereas the replacement
            scale to the post of STA will be corresponding to that of 1640-2900.
G           As such the applicants need not have any apprehension as stated in
            para 5 of the rejoinder statement that they will be asked to work at
            a lower level without protection of their higher pay-scale after the pay
            scales are revised on the basis of the Fifth Pay Commission's
            Recommendations. In any case, such an apprehension is premature
H            and jf they feel aggrieved by the decision of the Government on the
                          U.0.1. v. ANIL KUMR [SETHI, J.]                       857
             recommendations of the Fifth Pay Commission in this regard, it is A
             open to them seek appropriate remedies at the relevant time."

     It further held that the Assistant Foremen in the DRDO were earlier categorised
     as group 'c' and in the new set up as STA they have been conferred with
     group 'b' non-gazetted status which showed that there was no reduction in
     their status in the restructured set up. We agree with the findings arrived at    B
     by the Central Administrative Tribunal on appreciation of all relevant facts~
     Learned counsel appearing for the Assistant Foreman have also not been
     very enthusiastic to challenge the aforesaid finding of Central Administrative
     Tribunal.

            The validity of Rule 6(3)(b) of 1995 rules was challenged on the ground C
     that it sought wrongly to provide the Senior Scientific Assistants and Chief
     Draughtsmen en bloc senior to the incumbents of the post of Assistant
     Foremen. The reason given to justify the placement of Assistant Foremen en
     bloc junior to SSAs and CDMs were in direct line of promotion to the
     erstwhile line of JSO whereas Assistant Foreman had to be promoted as
     Foreman before receiving further promotion as JSO. It was not claimed by the D
     Union of India that the qualifications and status of the SSAs and CDMs were
     superior to that of the Assistant Foremen. The pay-scales prescribed for the
     erstwhile cadre of Assistant Foremen was admittedly higher than the SSAs.
     There does not appear to be any justification for placing the Assistant
     Foreman en bloc junior to the CDMs and SSAs. After referring to the rival E
     claims of the SSAs and the award of the Board of Arbitration, the Tribunal
     held:-

             "It is, thus, clear that the award of the Board of Arbitration had
             resulted in one more grade being available to SSAs and CDMs before
..           promotion as JSO on the analogy of Assistant Foremen. Even if it is F
             contended as has been held by the Bangalore Bench of the Tribunal
             in Pinto's case, in OA 458 to 500190 disposed of on 30.12.1991 that
             the placement of the SSAs in the higher scale does not amount to
             promotion for the purpose of operation of the reservation roster, the
             fact remains that an upgraded scale was available for sections of the G
             SSAs and CDMs and the same was given on the basis of seniority.
             subject to rejection of the unfit. It is true that all SSAs irrespective
             of their pay-scale were eligible for promotion to the level of JSOs. In
             practice, however, in vast majority of cases such promotions would
             be given only to SSAs in the higher scale. Appointment to the higher
             grade of 2375-3500 was on the basis of seniority-cum-fitness while H
     858                    SUPREME COURT REPORTS                    [1999] 3 S.C.R.

A           promotion to the next higher level of JSO was on the basis of selection.
            In such a situation, the question of promotion of SSAs in the lower
            grade directly as JSOs would not normally arise. Shri M.N. Swamy for
            the private respondents has cited some cases of direct promotion to
            the level of JSOs from the lower grade of SSAs but these were isolated
            instances. In fact, the Tribunal had to intervene in some cases to
B           direct the respondents to give higher grade of SSAs to the concerned
            officials who were senior. In those cases, the department had found
            them meritorious enough for promotion by selection as JSOs, but
            denied them the upgraded scale of SSAs even though they were
            senior on the ground that they were unfit. We also find from Schedule
c           I of the 1995 Rules that at the time of the commencement of these
            Rules, the number of posts of JSOs ·was 893. The earlier arrangement
            for promotion was on the basis of vacancies and the number of
            vacancies in any particular year at the level of JSOs would not be
            many. The number of SSAs in both scales was shown as 2394 of
            whom about half would have been in the scale of2375-3500. Taking
D           into account the quota available for SSAs for promotion to JSOs in
            the normal course, only the senior SSAs who were in the higher scale
            would have little chance for the junior SSAs in the lower grade for
            being promoted directly as JSOs without passing though the higher
            scale of 2375-3500. The fact that CDMs and SSAs unlike the AFMs
.E          were in direct line of promotion to JSOs, is, therefore, not a good
            ground to support the department's action in placing all SSAs and
            CDMs en bloc senior to AFM at the level of the Senior Technical
            Assistant when in practice the SSAs in the lower scale would have


                                                                                        ..
            been through the upgraded scale of2375-3500 before being promoted
            as JSOs. The same position holds good in respect of CDMs also. As
F           has been indicated earlier, this step by the department is also
            inconsistent with their stand to bifurcate the cadres of CDMs and
            SSAs and place those CDMs and SSAs in the upgraded scale at the
            level of Technical Officer 'A' while retaining others at the level of
            STA. We, therefore, find no justification in placing an Assistant Foreman
            drawing pay in the scale of 2000-3200 and with much longer service,
G
            as junior even to a newly appointed SSA in the scale of 1640-2900
            which would be the result when all Assistant Foremen are placed en
            bloc junior to CDMs and SSAs."

           We do not find any reason to disagree either with the reasoning or the
H    conclusions arrived at by the Central Administrative Tribunal in this regard.
'
;,.,.




                             U.0.1. v. ANIL KUMR [SETHI, J.]                     859
        The action of putting the Assistant Foremen en bloc junior to the SSAs was A
        without any rationale or valid basis of which has rightly been held to be
        arbitrary being violative of the fundamental rights guaranteeing equality in
        service matters.

              This view is strengthened more on account of the dismissal of the claim
        of the SSAs praying for their placement in the senior pay-scale. There is no B
        denial of the fact that before and after the recommendations of the various
        Pay Commission the Assistant Foremen had been in the higher pay-scale as
        compared to the SSAs and Draughtsman Grade I. For a Welfare State the
        healthy and energetic civil services is a guarantee for good administrative
        system entrusted with the governance for the establishment of a rule of law. C
        Security of tenure and the service conditions of the employees is of paramount
        consideration to achieve the goals for having an effective and vibrant civil
        service in the society. No government can resort to actions depriving the
         benefits to a section of the service en bloc which admittedly is to their
        disadvantage. Such en bloc deprivation of the promotional avenues and
        service benefits cannot be sustained when on cogent reasons are assigned D
        by the administrative set up. Resort to differential treatment in the service can
        be haci only for achieving the efficiency in the service or any other specified
        objective declared to be attained. No discrimination can be permitted only at
        the whims of the administration or to satisfy another section of the civil
        service. The Union of India in this case has not been in a position to justify E
        the differential treatment made to the Assistant Foremen by putting them en
        bloc junior to the Senior Scientific Assistants particularly when they have all
        along been found to be enjoying better position and higher grade as compared
        to the SSAs in the junior pay-scale.

               Dealing with the similar situation, this Court in R.K. Sethi and Anr. v. F
        Oil and Natural Gas Commission & Ors., (1997] 10 SCC 616 held that in
        service jurisprudence, the "next below the rule" contemplates to ensure that
        if junior employee is given promotion without considering his senior than the
        senior employee can claim the right to considered for such promotion with
        effect from the date on which the junior was so promoted. It was approved
        that :-                                                                         G
               "where .. two or more categories have been merged, for purposes of
               promotions to the next higher pay scale, inter se seniority of the
               employees considered for promotion will be fixed on the basis of
               length of service put in by the individual in the respective pay scale
               with those in the higher erstwhile scale, being treated as senior to H
    860                     SUPREME COURT REPORTS                      (1999] 3 S.C.R.

A            those in the lower erstwhile scale, en bloc."

          This Court in State of Maharashtra & Anr. v. Chandrakant Anant
    Kulkarni & Ors., [1981] 4 SCC 130 enunciated the principles which are
                                                                                           ....
                                                                                              _


    required to be kept in mind while considering the question of equation of
    posts allotted to the service. It was reiterated in S.P. Shivprasad Pipa/ v.
B   Union ofIndia & Ors., [I 998] 4 SCC 598 that the principles formulated in the
    matter of equation of posts were :-

             "(I) where there were regularly constituted similar cadres in the different
             integrating units the cadres will ordinarily be integrated on that basis
             but (2) where there were no such similar cadres, the following factors
C            will be taken into consideration in determining the equation of posts :

             (a) Nature and duties of a post;

             (b) Powers exercised by the officers holding a post, the extent of
             territorial or other charge held or responsibilities discharged;
D            (c) The minimum qualifications, if any, prescribed, for recruitment to
             the post and;

             (d) The salary of the post."

          We, therefore, do not find any substance in the submissions made by
E   the learned counsel for the Union of India and of the Senior Scientific
    Assistants (Junior Grade) assailing the judgment of the Central Administrative
    Tribunal holding Rule 6(3)(b) to be unconstitutional. The discrimination vis-
    a-vis the Assistant foreman is writ large and has rightly been set aside vide
    the orders impugned in these appeals.

F          In view of what has been stated hereinabove, we find no substances
     in any of appeals which are accordingly dismissed but without any order as
    .to costs.

    B.K.M.                                                        Appeals dismissed.


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