Holding

The benefit under the Office Memo cannot be given retrospectively from 1 January 1986; it is applicable only from 1 April 1987, and the classification does not violate Articles 14 and 16.

Summary

The case concerned employees of the Accounts Wing of the Indian Audit and Accounts Department who claimed that the benefit under the Office Memo dated 12 June 1987, which upgraded pay scales, should be applied retrospectively from 1 January 1986, the date the Fourth Central Pay Commission had recommended higher scales for existing posts. The Union of India argued that the Pay Commission’s recommendations were split: the first part applied from 1 January 1986, while the second part required the government to identify posts and implement the changes only from 1 April 1987. The Supreme Court held that the posts to be placed in the new functional grades did not exist on 1 January 1986 and therefore the higher scales could not be granted retrospectively; the correct date of effect was 1 April 1987. The Court further held that the principle of equal pay for equal work did not apply to the earlier date because the classification was reasonable and served a legitimate administrative purpose. Consequently, the appeals of the Union of India were allowed, setting aside the orders of the Central Administrative Tribunal.

Issues considered

Whether the benefit under Office Memo dated 12 June 1987 should be extended to the Accounts Wing with effect from 1 January 1986 or from 1 April 1987.
Whether the classification of employees into different implementation dates violates Articles 14 and 16 of the Constitution.
Whether the principle of equal pay for equal work is attracted in this context.

Legislation cited

Constitution of Indias. Article 14, s. Article 16

Subjects

Equal pay for equal workArticle 14Article 16Central Pay CommissionFunctional gradesClassification of service personnelRetrospective benefitCivil service restructuring

Judgment

A. UNION OF INDIA-AND ORS.
v.
SECRETARY, MADRAS CIVIL AUDIT & ACCOUNTS
ASSOCIATION AND ANR. ETC.

FEBRUARY 4, 1992
B
[LALIT MOHAN SHARMA AND-K. JAYACHANDRA REDDY, JJ.}

Constitution of India, 195o-Articles 14, 16-Personnel of Audit Wing
and Accounts Win~e~ommendlltion of 4th Central Pay Commis- l
C - sian-Separate dates for implementation-Legality of-Principle of equal pay .~
for equal work whether attracted.

Constitution of India, 195(}-Articles 14, 16-Equality before law-
Meaning-Civil Service--Classifying persons by State-Legality.

D The Bangalore Bench of Central Administrative Tribunal held that
the employees belonging to-the Accounts Wing of Indian Audit and Ac·
t=ounts Department were entitled to the benefit under Office Memo dated
U.6.87 issued by the Government of India, Ministry of Finance, Depart·
ment of Expenditure with eft'ect from 1.1.86.

E Subsequently, s.ome of the employees of the Accounts Wing in the
Tamil Nad~ filed petitions before the Madras Bench of the CAT, claiming
that they also should be given the benefit with effect from 1.1.86.

J'he Madras Bench did not agree with .the view taken by the Ban-
F galore Bench and the matter was referred to the Chainnan of the CAT and
a Full Bench was constituted.

The Full Bench answered the reference agreeing with the view taken
by the Bangalore Bench.

G The appeals, befor~ this Court, were filed against several orders
passed by the Madras Bench as well as the Bangalore Bench of the CAT.

The appellants contended that the omce Memo dated 12.6.87 was
based on the recommendations of the Fourth Central Pay Commi1s~on
which consisted of two parts. The 6rst part recommended corresponding
H scales of pay for the existing posts in the Accounts Wing giving effect from
530
U.O.I. v. SECRETARY 531

1.1.86. The other part was contained in para ·11.38. Pursuant to those .A
reeommendations the Government d~ided to implement the same with
etTert from 1.4.87; that the Full Bench failed to appreciate co~ly the
second part of the recommendation of the Pay Commission, which indi-
cated that the number of posts to be placed in these scales were to be
identified by the Government and the- Government could therefore decide
and then gh·e efl'~t at a later date. _
B·

- The respondents ..employees contended that · the Pay Commission
recommended that there should be parity in the pay scales ·of the staff in
the I.A. & A.D. and other Accounts Organisations and since. all of them
discharged similar duties· the .,enefit should be extended to all of them · C
uniformly with effect from 1.1.86; that the persons allocated to the Ac-
counts Wing, who possessed similar qualifications before and after entry
into the Department, were perfonning duties of s~~e nature, as those
allocated to the Audit Wing, and allowing them lower scales of pay than
· those allowed to the Audit Wing was violative ·Of Artjcles 14 and 16 ofthe
Constitution; that since all of them did the .same work, they should be D
treated alike and the principle of equal pay for equal work was very much
attracted; and that the recommendations of the Pay Commission should
be accepted .as a whol~ in respect of all the categories of employees.

On the question, "whether the benefit under Office Memo dated 12th E
June, 1987 issued by the Go~emment of India, Ministry of Fi.nance,
Department of Expenditure should be extended to the members of the
Accounts Wing of the Indian Audit and Accounts Department, with effect
from 1.1.~6, as in the case of Audit Wing, or whether it should be from
1.4.87 as indicated in the Office Memo?" Allowing the appeals of the Union
of India, this Court, F

HELD : 1.01. The Pay Commision Report iodicated _that after bifur-
cation, certain posts in the Accounts Wing should be declared to be
. brought into the functional grades and thereafter the higher scales of pay
should be ·paid to the officers fitted in such grades. [S41E-F]
G
1.02. For that purpose necessary rules have to be framed prescribing
the eligibility etc. and the senior Accountants who have completed three
years' regular service in ~he grade are upgraded to the post of Asstt.
Accounts Officer. It is evident that all this could have been done only in
the year 1987 and in the organised Accounts Office higher sc:ales of pay H
532 SUPREME COURT REPORTS (1992}1 S.C.R.

A were given with effect from 1.4.87 i.e. from the beginning of the financial
year. [540G-H]

1.03. The respondents cannot insist that they must be given higher
scales with effect from 1.1.86. This claim is obviously based on the ground
that some of the officers belonging to the Audit Wing were given scales with
B effect from 1.1.86. But it must be borne in mind that they were eligible on
that date for the higher scales. Likewise some of the Officers ofthe Accounts
Wing who were eligible for higher scales were also given. [540H-541A]

1.04. Before bifurcation all of them belonged to one Department and
C as such all those offit-ers of' both the wings who were entitled to the scales
of pay from 1.1.86, have been granted the same with effect from that date.
But with regards the posts that were to be identified and brought into the
functional grades in future, the higher scales of pay cannot be made
applicable retrospectively, i.e. with effect from 1.1.86. It cannot be said that
on that date the posts identified subsequently were also in existence. In
D such a situation· the principle of equal pay for equal work is not attracted
as on 1.1.86. [541F-H]

1.05. After upgradation, oflicers in the Audit and Accounts Wings
who are doing the equal work are being paid equal pay. But that cannot
bt~ said to be the situation as well on 1.1.86 also. [543D]
E
2. Equality before the law means that among equals the law should
be equal and should be equally administered and that like should be
treated alike. However, the principle does not take away from the State the
power of classifying persons for legitimate purposes. [537C)
F
Ameemnisa B(!tllm and Ors. v. Mahboob Begum a11d ors., [1953] SCR
404; State of We.H Bengal v. Anwar Ali Sarkw; [1952] SCR 284; E.P.
Royappa v. Sra1e of Tamil Nadu & Anr., [1974] 2 SCR 348; Alrs. Menaka
Gandhi v. f../,liOfl of India and Anr.. [197S] I SCC 248; Ramana Dayaram
ShcTiy \'.lllf£'17W(io!lai Aii]JOI1 Autlwtity of India and ors., [19791 3 sec 489;
G D.S. t'Jukara and Ors. v. Union of India. [19lB] 1 sec 305; All India Station
Masters' aiUI A.ssi_..,·umr Station Masters' Associarion & Ors., , .. General
Manager, Cemraf Rat"/JW\Y and OrY., [ 1960] 2 SCR 311: Kislwn' Molwnlal
Bakshi \', Union of India. AIR 1962 SC 1139; U11ikat Sankwzni Menon v.
The State of Rajas/han, 11~67] 3 SCR 430; State of Punjab v. Joginder Singh,
H [1963] Supp. 2 SCR 169, referred to.
U.O.l. v. SECRETARY [REDDY, J.] 533

• Purshottam Lal and Ors. v. Union of India and Anr., [1973] 1 SCC A
651; P.Parameswaran and Ors. v. Secretary to the Govemment of India,
[1987] Suppl. S.C.C. 18, distinguised.

CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 1783-84
of 1990.
B
From the Judgment and Order dated 12.10.1989 of the Cenral Ad-
ministrative Tribunal, Madras in Original Applications No. 232 and 262 of
1988.

(With C.A. Nos. 772-777/89, 1085-90/89, 535-40/89, 705-725/89, 945-
74/89, 1043-63/89, 1024-42/89, 733-38/89, 739-747/89, 716- 32/89, 997-999/89, c
3117/89, 1064-84/89, 1000-23/89, 975-96/89, 3623-25/88, 3698-3704/88, 3705-
14/88 & 3678/89).

K.T.S. Tulsi, Addl. Solicitor General, N.N. Goswamy, A. Subba Rao~
C.V.S. Rao and P. Parmeswaran for the Appellants. D
E.X. Joseph, Sanjay Kumar, N.S. Das Bchl, ~- Balakrishnan, M.K.D.
--. Namhoodiri and S. Prasad for the Respondents.

Tht: J udgQlcnt of the Court was delivered by
E
K. JAYACHANDRA REDDY, J. All these appeals pursuant to the
special kave granted arc filed by the Union of India, the Comptroller &
Auditor General and the Principal Accountant General. The only question
that arises for considaation is whether the benefit under Office Memo
·-
- ..... (O.M.) dated 12th June, 1987 issu~d by the Government oflndia, Ministry
;..., of Finance, Dt:partment of Expenditure should he extended to the mcm-
F
bt:r~ of the Accounts Wing d the Indian Audit and Accounts Department
('"I.A. & A.D." for short) with efftct frnm 1.1.86 as in the case of Audit
Wing or wh~.:thcr it should be from 1.4.87 as indicated in the said Office
M..:nw '! S..:n.:ral of the ~mployccs belonging to the Accounts Wing filed
pctitillllS and the Bangalore Bench of Central Administrative Tribunal G
("CAT' fur short) held thatthcv arlo! .:ntitled to tht: benefit \Vith effect from
I.I .S(). Sub~equcnt to the said judgment some of the employees in the
Account:-. \\'in~ in the Tamilnadu filed petition<; hcforc the Madras Bench
Df the CAT claiming that b~ndit should be extended with dfcct from
L LK(l The \·fadra~ bench was not prepared to agree with the view taken H
534 SUPREME COURT REPORTS [1992]1 S.C.R.

A by the Bangalore Bench and the matter was refen-ed to the Chairman of
the CAT who constituted; Full Bench presided over by himSelf. The FuD
Bench agreed with the view taken by the Bangalore Bench and answered
the- reference accordingly. Following the decision of the Full Bench, the
·Madras Bench passed the final orders. All these appeals are filed against
B several orders passed by the Madras Bench as well as the Bangalore Bench.
It is contended on behalf of the Union of India that the Office Meino dated
12.6.87 is based on the recommendations of the Fourth Central Pay Com·
mission which consists of two p~s. The fust part recommends cor-
responding scales of pay for the existing posts in the Accounts _Wing giving - ..,._.
C effect from 1.1.86. The other part is contained in para 11.38. Pursuan~ to
tho~ recommendations the Government decided to implement. the same
with effect from 1.4.87. It is also contended that the Full Bench failed to
appreciate correctly that the second part of the recommendation of the Pay
Commission clearly indicated that the_ number of posts to be placed in
these scales were to be identified by the Government and the Government
D could therefore decide and then give effect at a -later date. The learned
coimsel on behalf of the respondents employees contended that the Pay
. Commission recommended that there should be parity in the pay scales of
the staff in the I.A. & A.D. and other Accounts organisations and ~ince all
of them discharge the similar duties the benefits should be exteQded to all
E of them uniformly with effect from 1.1.86. To appreciate these contentions
· it becomes necessary to refer to the history of the case briefly and to the
relevant documents including the recommendations of the Pay Commis-
sion.

F I.A. & A.D. headed by the Comptroller & Auditor General of India
(C. & A.G.) recommended some time in 1983 to Government of India to_
bifurcate I.A. & A.D. into two separate and distinct wings, one to exclusive·
ly deal with 'audit' and the other to deal with 'accounts' with their own _
separate personnel. The Government of India after considering all aspects
approved the proposal in December, 1983. Thereafter C. & A.G. formu·
G lated a scheme on 19.12.83 for pifurcation of the I.A. & A.D. into two
separate and distinct. wings from 1.3.84 providing for all incidental and
auxiliary matters thereto. Before the restructuring of the cadres, the staff
working in the IA. & A.D. were asked to exercise their opti_on to serve in
either of the two wings. Some exercised the option. There was a grievance
~-·""
H that the various equivalent cadres in Audit and Accounts Wings 'Were not
U.O.I. v. SECRETARY [REDDY, J.] 535

paid the same scales of pay and the persoAs allot.ied .to Lhe Audit Wing A
were drawing more pay than the persons in the Accounts Wing. The Fourth
Pay Commission which was looking into various aspects of the matter
recommended in its report that there· should be parity of scales of pay
between the two wings. The Government took the necessary decision on
the. basis of the recommendations and the same were published in the
Gazette on 13.9.86. The Government accepted the recpmmendations relat-
B
ing to the scales of pay and decided to give effect from 1.1.86 in respect
of the recommendations of scales of pay fo-r Group 'D' employees. There-
after Ministry of Finance, Department of Expenditure ,accordingly issued
Office Memo dated 12.6.87 regarding the posts to be placed in higher
scales of pay and it was mentioned that these orders would take effect from c
1.4.87. The grievance of these employees i£ that these recommendations
should take effect from_l.1.86. The Fourth Pay Commission in para 11.38
of its Report made the following recommendations :

"We have considered the matter. There has all along been parity D
between the staff in the IA & AD and accounts staff of other
departments, which has been disturbed by restructuring the lA
& AD into two separate cadres, viz. audit cadre and accounts
and establishment cadre and giving higher pay scales to a major
portion of the staff on the audit side. The audit and accounts
functions are complementary to each other and are generally E
performed in many Govt. Offices in an integrated manner
which is necessary for their effective functioning. The staff in
these offices perform functions of internal check and audit
suited to the requirements of each organisation which are
equally important. There is direct recruitment in the scale of F
330-560 in. all the audit and accounts cadres through Staff
SelectiOn Comm./Rly. Recruitment .Board from amongst
university graduates. We are therefore ar'the view that there
should be broad parity in the pay scales of the staff in lA &
AD and ()ther accounts organisations. Accordingly we recom-
mend that the posts in the pay scale of Rs. 425-700 in the G
organised accounts cadres may be given the scale of 1400-2600.
In the Railways. this will apply to the post of sub.head in both
the ordinary and selection grades. \Vc also rCC\.)mmend that
this should be treated in future a~ a functional grade requiring
promotion as per normal procedure. The proposed scale of H
536 SUPREME COURT REPORTS [1992) 1 S.C.R.

A 2000-3200 of section officer may also be treated as a functional
grade. With the proposed scales, there will be no selection for
any of the posts. As regards the number of posts in the func-
tional scales of Rs. 1400-2600 and Rs. 2000- 3200, we note that
about 53 per cent of the total posts of junior/senior auditor and
66 per cent of the total posts of ordinary and selection grade
B
of section officer in lA & AD are in the respective higher
scales. Govt. may decide the ftumber of posts to be placed in
the scales of (i) 1400-2600 and (ii) Rs. 2000-3200 in the other
organised accounts cadres taking this factor into consideration.
All other accounts post may be given the scales recommended
c in Chap. 8.11

From this it emerges that the Pay Commission made two recommen-
dations i.e. :

u(i) there should be broad parity in the pay scales of staff in
D the lA & AD and other Accounts organisations ;

(ii) the scales of pay of Rs. 1400-2000 and Rs. 2000-3200 should
be treated as functional (grades) requiring promotion as per
normal procedure. The number of posrs to be placed in these
scales to be decided by the Government."
E
So far as the first part of the recommendations is concerned, it has
been implemented and there is no dispute about the same. The second part
of the recommendations relates to the treatment of the scales of pay of Rs.
1400-2000 and Rs. 2000-3200 as functional grades requiring promotion as
F per normal procedure and also the number of posts to be placed in these
scales of pay. The Pay Commission also observed that in respect of other
recommendations the Government will have to take specific decisions to
give effect from a suitable date keeping in view all the relevant aspects.
Accordingly the Government had to examine and decide the number of
posts to be placed in these scales of pay and a final decision was taken in
G the year 1987 and promotions were to be made as per normal procedure.
Therefore the Government issued Office Memo that the appointments to
the extent of number of posts should be made with effect from 1.4.87. The
Full Bench having noted that the offices belonging to both wings do the
same type of work, concluded that the principle of equal pay and equal
H work is fully applicable in the case of the personnel belonging to the
U.O.I. V. SEcRETARY [REDDY, J.} 537

Accounts Wing. The Full Bench interpreted the recommendations of the A
Pay Commission as to mean that both the wings would not only gel the
revised scales of pay but they would also get from the same date. It
ultimately held that there is no apparent reason to give different dates of
implementation to the members of the Accounts Wing and that the Office
Memo dated 12.6.87 is violative of Article 14 of the Constitution of India
and it accordingly confirmed the view taken by the Bangalore Bench .
B
•
It may not be necessary to refer to various decisions of this Court on
the scope of Article 14 particularly on the question of discrimination.
Suffice if we refer to few of them which are cited quite often. It is
well-settled that equality before the law means that among equals the law C
should be equal and should be equally administered and that like should
be treated alike. However, the principle does not take away from the state ·
the power of classifying persons for legitimate purposes. In Ameenmisa

- Begum and Ors. v. Mahboob Begum and Ors., 11953] S.C.R. 404 il was held
thus: .
D
"A Legislature which has to deal wjth diverse problems arising
out of an infinite variety of human relations must, of nt:1.:~ssity
have the power of making special laws to attain particular
objects; and for that purpose it must have large powers of
selection or classification of persons and things upon which E .
such laws are to operate."

In State of West Bengal v. Anwar Ali Sarkar, [1952] S.C.R. 284, it wa"
held thus :

-· "The classification must not be arbitrary but must be rationaL F
that is to_ say, it must not only be based on some qualities or
characteristics which are to be found in all the persons grouped
together and not in others who are left out but those qualilies
or characteristics must have a reasonable relation to the object
of the legislation. In order to pass the test, two conditions must
be fulfilled, -namely,(l) that the classification must be founded G
on an intelligible differentia which distinguishes those that are
grouped together from others and (2) that that differentia must
have a rational relation to the object sought to be achieved by
the Act The differentia which is the basis of classification and
the object of the Act are distinct things and what is necessary I-I
538 SUPREME COU~ REPORTS (1992) 1 S.C.R.
)-

A is that there must be a nexus between them."

In E.P. Royappa v. State of Tamil Nadu and Anr., [1974] 2 S.C.R. 348;
-
Mrs. Maneka Gandh( v. Union of India alfd Anr., [1978] 1 S.C.C. 248 and
Ramana Dayaram Shetty v. International Airport Authority of India and
Others, (1979] 3 S.C.C. 489 this Court has held that Article 14 strikes at the •'
B arbitrariness in State action and ensures fairness and equality of treatment.
In D.S. Nakara and Others v. Union of Indfa, [1983] 1 S.C.C. 305 the above
three decisions are referred to and the ratio laid doWn is as under :
~'-
11
Thus the fundamental principle is that Article 14 forbids class
c legislation but permits reasonable classification for the ptH"pose
of legislation which classification must satisfy the twin tests of
classification being founded on an intelligible differentia which
distinguishes persons or things that are grouped together from
those that are left out of the group and that differentia must
have a rational nexus to the object sought to be achieved by
D
the statute in question.~~

In the instant case the question is whether there was apparent reason
to give different dates of implementation of the recommendations of the
Pay Commission in respect of the members of the Accounts wing and
E whe~er such an implementation offends Articles 14 and.16 in any manner ?
It is not in dispute that after the report of the Pay Commission the.
. Government considered the matter and accepted the substantial part of
the recommendations and gave effect to the revised scales of pay with
effect from 1.1.86. It is clearly indicated in the report that in regard to
F recommendations in other matters the Government will have to take
specific decisions to give effect to them from a suitable date keeping in
view all the relevant aspects including Lh_e administrative and accounting
~
---
work. The second part of the recommendations relates to treatment of
scales of pay of Rs. 1400-2000 and Rs. 2000-3200 as functional grades
requiring promotion as per normal procedure and also the number of posts
G to be placed in these scales of pay. These recommendations clearly fall in
the category of other recommendations and the Pay Commiss-ion itself has
indicated that in respect of such recommendations the Government will
have to take specific decisions to give ·effect from a suitable date. The
Government, therefore, had to take the decision in respect of number of ~ ...--
H posts to be placed in these scales of pay. In this context it is relevant to
U.O.I. v. SECRETARY [REDDY, J.) 539

refer to paragraph 4 of the Office Memo dated 12.6.87. It reads as under : A

Q4. The question regarding number of posts to be placed in the
· higher scales of pay has been under the consideration of the
Government and it has now been decided that the ratio of
number of posts in higher and lo~er scales in the Organised
Accounts cadres as well as in Accounts Wing of the lA & AD B
may be as follows :-

(i) Section Officer (SG) Rs.2000-6-2300-EB-75-3200 80%
-~~--
(ii) Section Officer Rs.1640-60-2600-EB-75-2900 20%
c
(iii) S~nior AccounlanL Rs.1400-40-1600-50-2300-EB- 80%
60-2600

(iv) Junior Accountant Rs.1200-30-1560-EB -40-2040 20%

The designations in different Organised Accounts cadres may D
be different. In such cases also the pay structure on these lines
may be decided."

The Government have to necessarily frame rules for appointment to
these functional grades and the Government decided that those who have
passed the Graduate examination and who have completed three years as E
Section Officer could be'placed in the category of the persons entitled to
the scale of pay of Rs. 2000-3200 and the same post was redesignated as
Assistant Accounts Officer which post was not there previously. A Circular
dated 17.8.87 makes this aspect clear. It can be seen that the category of
officers who have to be placed in the functional grade had to be decided F
by the Government and accordingly the Government took the decision in
the year 1987. Therefore it is not correct to say that these officers who were
subsequently placed in the functional grade belong to the same group who
were entitled to the respective scales in their own right on 1.1.86 itself. It
must be borne in mind that in order to enable the identification of posts
~nd fitment of proper persons against them the Government had to take a
G
decision. ·We have already noted that the recommendations of the Pay
Commission deal with parity of scales of pay of the staff in I.A. & A.D.
and other Accounts organisations after holding that Audit and Accounts
wings functions are complementary. But the Pay Commission also pointed
out that the posts in the scales of pay of Rs. 1400-2600 and Rs. 2000-3200 H
540 SUPREME COURT REPORTS [1992] 1 S.C.R.

A should be treated as functional grades requiring promotion as per normal
procedure and it was left to the Government to decide about the number
of posts to be placed in these scales. Paragraph 4 of the Office Memo dated
12.6.87 deals with the later part of the recommendations and clearly
provides for the identification of the posts carrying somewhat higher
responsibilities and duties and for an exercise to be undertaken for fitting
B the senior and suitable persons against these posts. The Government after
due consideration decided the issue. The Circular dated 17.8.87 clearly
shows that some of the posts are identified as belonging to the higher
functional grade and accordingly issued instructions in conformity with its
Office Memo dated 12.6.87 and accordingly they were given the benefit
c with effect from 1.4.87.

One of the submissions.of the learned counsel for the respondents is
that the persons allocated to the Accounts Wing, who possessed similar
qualifications before and after entry into the Department, were performing
D duties of same nature, as those.allocated to the Audit Wing, and that being
so, allowing them lower scales of pay than those allowed to the Audit Wing
was violative of Articles 14 and 16 of the Constitution. It is true that all of
them before restructuring belonged to one Department. But that by itself
cannot be a ground for attracting Articles 14 and 16 of the Constitution.
As already mentioned the new posts have to be identified as indicated by
E the Pay Commisssion and thereafter the implementation of the recommen-
dations in respect of higher scales can be done. The Full Bench as well as
the Bangalore Bench of CAT have not correctly interpreted the scope of
the recommendations. A combined reading of the Pay Commission Report

---
and the Office Memo makes it abundantly clear that the second set of the
F recommendations could only be given effect to after identifying these posts.
For that purpose the whole matter is required to be examined and the
necessary decision has to be taken. In this context it is also necessary to
note that the post of Assistant Accounts Officer was not in existence earlier
which is now brought under a functional grade. For that purpose necessary
rules have to be framed prescribing the eligibility etc. and the Senior
G Accountants who have completed three years' regular service in the grade
are upgraded to this post. It is evident that all this could have been done
only in the year 1987 and in the s.aid organised Accounts office higher
scales of pay were given with effect from 1.4.87 i.e. from the beginning of
the financial year. We are unable to see as lo how rhc respondents can
H insist that they must be given higher scales with effect from 1.1.86. This
U.O.I. v. SECRETARY [REDDY, J.] 541

claim is obviously based on the ground that s<_>me of the Officers belonging A
to the Audit Wing were given scales with effect from 1.1.86. But it must be
borne in mind that they were eligible on that date for the higher scales.
Likewise some of the. 0 fficers of the Accounts wing who were eligible for
higher scales were also given. But with reference to the second part of the
recQmmendations categoric's of posts in the functional grades in the Ac-
counts Wing had to be identified and created. The respondents who got
B
that benefit of being upgraded now cannot claim that they must also be
given same scales like others in respect of whom the recommendations of
'the Pay C~mmission were given effect to with effect from 1.1.86. There is
a clear distinction between the two categories. Therefore, the submission
• that giving two different dates of implementation of the recommendations C
in respect of these two categories of personnel of the Accounts Wing and
the Audit Wing offends Articles 14 and 16, is liable to be rejected.

The Full Bench of CAT further held that I.A. & A.D. consists of two
wings and both should get the same scales of pay and there is nothing in D
the report of the Pay Commission to indicate that these were to be
separated and dealt with separately. It also held that bifurcation was done
only for the purpose of specialisation and efficiency and not to create two
separate organis.ations. Relying on this and other similar observations made
by the Tribunal, the learned counsel submitted that since all of them do
the same work they should be treated alike and the principle of equal pay E
for equal work is very much attracted. We see no force in this submission.
It must be noted that the Pay Commission Report clearly indicated that
after bifurcation certain posts in the Accounts wing should be declared to
be brought into the functional grades and thereafter the higher scales of
pay should be paid to the officers fitted iri such grades. It may be noted F
that before bifurcation all of them belonged to one Department and as such
all those officers of both the wings who were entitled to the scales of pay
from 1.1.86, have been granted the same with effect from that date but with
regards the posts that were to be identified and brought into the functional
grades in future, the higher scales of pay cannot be made applicable
retrospectively i.e. with effect from 1.1.86. It cannot be said that on that G
date the posts identified subsequently were also in existence. In such a
situation the principle of equal pay for equal work is not attracted as on
1.1.86.

In All India Station Masters' and Assistant Station Masters' Associa- H
542 SUPREME COURT REPORTS [1992] 1 S.C.R.

A tion & Others v. General Manager, Central Railways and Others, (1960] 2
S.C.R. 311 this Court held as under : -

11
lt is clear that, as between the members of the same class, the
question whether conditions of senj.ce are the same or not may
well arise. If they are · oot, the question . of denial of equal
B opportunity will require serious consideration in such cases.
Does the concept of equal opportunity in matters of employ-
ment apply, however, to variations in provisions as between
members of different classes of employees under the State ? In
our opinion, the answer must be in the negative. The concept
c of equality can have no existence except with ref~rence to·
maners which are common as between individuals, between
whom equality is predicated. Equality of opportunity in matters
of employment can be predicated only as between persons, who
are either seeking the same employment, or have obtained the
same employment."
D
Proceeding further .the Court held thus:

11
There is, in our opinion no escape from the conclusion that
equality of opportul)ity in matters of promotion, must mean
..
E equality as between members of the same class of employees,
and not equality between members of separate, independent
classes."

The same principle was later confirmed in the case of Kishori M~han
lal Pakshi v. Union of India, AIR 1962 S.C. 1139.
F
The above ratio has been followed in Unikat Sanlamni Menon v. 17le
State of Rajasthan, [1967] 3 S.C.R. 430 wherein this Court observed as
under:

11
1t is entirely wrong to think that every one, appointed to the
G same post, is entitled to claim that he must be paid identical
emoluments as any other person appointed to the same post,
disregarding the method of recruitment, or the source from
which the Officer is drawn for appointment to that ppst. No
such equality is required either by Art. 14 or Art. 16 of the
H Constitution. 11
U.O.I. v. SECRETARY [REDDY, J.] 543

In State of Punjab v. Joginder Singft, [1963'1 Suppl. 2 S.C.R. 169, this A
question has been considered and it is held that the question of denial of
equal opportunity could arise only as between members of the same class
and that it was open to the Government to constitute two distinct services
of employees doing the same work but subject to different conditions of
service. The Court also concluded that the assumption that equal work
B
must receive equal pay was not correct and that it was also not correct to
Say that if there was equality in pay and work there must be equality in
·conditions of service. ·

Having given our earnest consideration we arc unable to agree with
the view taken by the Full Bench of CAT that the principle of equal pay C
for equal work is attracted irrespective of the fact that the posts were
identified and upgraded in the year 1987. There is no dispute that after
such upgradation, officers in both the wings who are doing the equal work
are being paid equal pay. But that cannot be said to ,be the situation as
well on 1.1.86 also. The learned counsel, however, submitted that the D
recommendations of the Pay Commission should be accepted as a whole .
in respect of all the categories of employees.· In this context he relied on
two decisions of this Court. In Purshottam Lal and Others v. Union of India
and another, [1973] 1 s.c.c. 651 a question came up whether the report of
the second Pay Commission did not deal with the case of those petitioners.
It was held thus : E

rtEither the Government has made. reference in respect ~f all
Government employees or it has not. But if it has made a
reference in respect of all Government employees and it ac-
cepted the recommendations it is bound to implement the F
recommendations in respect of all Government employees. If
it does not implement the· report regarding some employees
only it commits a breach of Articles 14 and 16 of the Constitu-
tion. That is what the Government has done as far as these
petitions are concerned."
G
In P.Parameswaran and Ors, v. Secretary to the Government of India,
[1987] Suppl. S.C.C. 18 in a short judgment this Court observed that
because of the administrative difficulties the Government cannot deny the
benefit of the revised grade and scale with effect from January 1, 1973 as
in the case of other person. H
544 SUPREME COURT REPORTS [1992] 1 S.C.R.

A There is no dispute that in the instant case the terms of reference of
Pay Commission applied to all the categories of Government servants. But
the question is as to from which date the other category referred to above
namely Assistant Accounts Officer etc. should get the higher scales of pay.
Identification of these posts and the upgradation cannot be treated as mere
administrative difficulties. The impl~o:mentation of the recommendations of
B the Pay Commission according to the terms thereof itself involved this
exercise of creation of posts after identification which naturally took some
time. Therefore the above decisions relied upon by the learned counsel are
of no 'help to the respondents.

c For all the above reasons w~ set aside the orders questioned in all.
these Civil Appeals and accordingly allow them. In the circumstances of
the cases, there will be no order as to costs.

V.P.R. Appeal allowed.