Holding

The 1984 letter was a one‑time measure applicable only to existing posts and does not extend to workers recruited in 1985, so the respondents are not entitled to the upgraded pay scale.

Summary

The Union of India appealed against a Central Administrative Tribunal order that had upgraded the pay scales of certain semi‑skilled workers recruited in 1985 to the skilled‑worker scale, based on a Ministry of Defence letter dated 15 October 1984. The 1984 letter, issued following recommendations of various expert committees, upgraded eleven semi‑skilled trades to skilled grade as a one‑time measure and stipulated that future recruitments would be governed by existing statutory rules. The petitioners argued that the letter could not be applied to workers appointed after its issuance, while the respondents contended that they were entitled to the upgraded pay. The Supreme Court held that the letter expressly limited its effect to existing posts and was not applicable to future inductions, including the 1985 appointees. Consequently, the Tribunal’s order was set aside and the appeals were allowed.

Issues considered

Whether the Ministry of Defence's 15 October 1984 letter upgrading certain semi‑skilled trades to skilled grade is a one‑time measure applicable only to existing posts.
Whether workers recruited in 1985 can claim the upgraded pay scale on the basis of that letter.
Whether the Central Administrative Tribunal erred in extending the upgrade to the respondents.

Subjects

service lawpay scale upgradationsemi‑skilled workersskilled workersone‑time measureCentral Administrative TribunalMinistry of Defencestatutory recruitment rules

Judgment

I
\

A UNION OF INDIA AND ORS.
V.
-
K.S. JOSEPH AND ORS. ETC.

FEBRUARY 5, 2004

B [V.N. KHARE, CJ., S.B. SINHA AND S.H. KAPADIA, JJ.]

Service Law:

Pay scale-Semi-skilled workers-Claim for upgradation of pay scale
C equivalent. to that of skilled workers-Minist1y of Defence by letter dated
15.10. !984 upgraded semi-skilled grade as skilled grade-Claimants appointed
in the year 1985, in semi-skilled grade-Later on claimed upgradation 011 the
basis ·of cqmmunictttion dated 15. 10. 1984-Held, the letter dated 15. 10. I 984
dearly stipulated that fresh induction in the Trade. list would be regulated by
D the exfsting statutory rules and the same would be applied/or recruitment and
that upgradation. was one time measure and would not he. applicable infuture-
Claimants having been recruited in the year 1985, letter dated 15.10.1~84
could nothave. been made applicable to them.

. CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 1499-1502
E of 1999.
From the iudgment and Order dated 6.11.95 and 8.11.96 of the Central
Administrative Tribunal, Hyderabad Bench at Andhra Pradesh in 0. Appln.
Nos. 81/93 and 1164/94 and R. Appln. Nos. 5/96 and 14 of 1996.

F WITH ......

C.A. Nos. 1497-98/99.

N.N. Go!!wami, S.W.A Qadri, Ms. Sushma Suri, Ms .. Anil Katiyar, R.
G Santhana Krishnan and D. Mahesh Babu for
the appearing parties.

The following Order of the Court was delivered:

C.A. Nos. 1499-1502 of 1999:

In the year 1974, the Third Pay Commission recommended for setting
H 196
U.0.1. v. K.S. JOSEPH 197

up an export body for proper classification ·of workshop jobs in Defence A
Department. In pursuance of this recommendation, the Ministry of Defence
set up an Expe1t Classification Committee headed by a retired High Court
Judge. The Committee adopted "Point Rating" method for evaluating more
than 1700 industrial jobs and recommended 9 pay scales for the industrial
jobs as against 5 scales contemplated against the Third Pay Commission. The B

- Ministry of Defence further constituted a Departmental Committee called
Committee on common category jobs, which recommended that 5 pay scales
suggested by the Third Pay Commission should be given to the Defence
workers. Later on, in the year 1984, the Anomalies Committee was appointed
·to go into certain anomalies in the matter of fixation of pay on grant of
appropriate fitment. This committee was later on converted into another Expert C
Committee to re-evaluate certain jobs. On the recommendation of this
Committee, 11 trades of semi-skilled grade in the scale of Rs. 210-290 have
been upgraded as skilled grade in the scale of Rs. 260-400, vide letter dated
15th October, 1984. It is not disputed that this recommendation was
implemented. Subsequently, in the year 1985 the respondents herein were D .
appointed as semi-killed workmen, although they were holding ITI certificate.
After putting in two years of service, they claimed that posts held by them
should also be upgraded from semi-skilled workmen to the skille.d workmen
and be given the pay scale meant for the skilled workmen. It appears that the
appellants herein declined their request, whereafter the respondents filed
Original Applications before the Central Administrative Tribunal, Hyderabad, E
praying therein to direct .the Central Government to upgrade the pay scales
from Rs. 800-1500 to Rs. 950-1500 with effect from the date of expiry of
two years' service in the Grade with all consequential benefits. It may be
noted that the pay scales, which the respondents wanted were meant for the
skilled workmen. The respondents herein contested the aforesaid Original F
Applications.

Relying on its earlier decision dated 23rd June, 1989, the Tribunal
allowed the Original Applications and directed that the respondents herein be
upgraded in the future vacancies. It is against the said judgment? the appellants
are in appeal before us. G
Shri N.N. Goswami, learned senior counsel, appearing for the appellants
urged that the recommendation contained in the Jetter dated 15th October,
1984 was a one time scheme wherein itself it was stipulated that future
recruitment in the feeder post would be governed by the fresh recruitment
Rules and, therefore, the Tribunal committed an error in applying the same H
-+-

A
198 SUPREME COURT REPORTS (2004) 2 S,C.R.

in tile case of the respondents. We find substance in the argument. The letter
dated 15th October, 1984 issued by the Ministry of Defence provided that a
-
decision has been taken on the unanimous recommendation of the Anomaly
Committee tot1pgrade l l categories of jobs from semi-skilled grade workmen
to skilled grade worked in the pay scales of Rs. 260-400. It further provides
B that fresh induction in the Trade List Shall be regulated by the existing
statutory Rules and the same would be applied for recruitment. It also provided
that the recommendation was by way of one time measure and shall not be
applicable in future. In view of the aforesaid recommendation contained in
-
the letter dated 15th October 1984, the respondent could not derive any
benefit. Admittedly, the respondents were recruited in the year 1985 under
C the existing statutory Rules and, thus, the recommendations contained in the
letter dated 15th October, 1984 could not have been made applicable therein.

For the aforesaid reason, the appeals deserve to be allowed. The judgment
under challenge is set aside. There shall be no order as to costs.

D C.A.Nos. 1497-1498 of 1999:
Jn view of the decision passed in C.A. Nos. 1499-1502 of 1999, these
appeals are dismissed. There shall be no order as to costs:

R.P. Appeals disposed of.