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Supreme Court of India

UNION OF INDIA & ORS.versusSHRI C.R. MADHAVA MURTHY & ANR.

Citation
2022 INSC 397
Decided
6 April 2022
Disposal
Dismissed

Holding

The Supreme Court upheld the High Court’s order, confirming that the case involved removal of a pay anomaly by stepping up the senior officers' pay under FR 22, and dismissed the appeals.

Summary

The petitioners (Union of India & Ors.) appealed against a Karnataka High Court order that directed the stepping up of pay of two senior officers (respondents) who had been promoted to Superintendent of Central Excise and Customs but whose juniors, upgraded under the Assured Career Progression (ACP) Scheme, were drawing higher salaries. The respondents argued that this created a pay anomaly and sought removal of the anomaly by having their pay stepped up to match that of the juniors. The High Court relied on FR 22, a government rule for removal of such anomalies, and ordered the stepping up of the respondents' pay from the date the juniors began drawing higher pay. The Supreme Court examined whether the respondents were claiming a stepping‑up under the ACP Scheme or merely relief from the anomaly, and held that the case was indeed about removal of a pay anomaly under FR 22. It affirmed the High Court’s decision and dismissed the appeals.

Issues considered

  • Whether the High Court was correct in applying FR 22 to order stepping up of pay of senior officers to remove a pay anomaly arising from ACP Scheme upgradation of juniors.
  • Whether the respondents were entitled to a stepping‑up of pay under the ACP Scheme or only relief from the pay anomaly.
  • Whether the Government of India order under FR 22 is applicable to the facts of this case.

Subjects

service lawpay anomalystepping up of payAssured Career Progression SchemeFR 22senior‑junior pay disparityremoval of anomaly

Judgment

22                       [2022]
              SUPREME COURT     3 S.C.R. 22
                             REPORTS                     [2022] 3 S.C.R.


A                        UNION OF INDIA & ORS.
                                      v.
                 SHRI C.R. MADHAVA MURTHY & ANR.
                    (Civil Appeal Nos. 2087--2088 of 2022)
B                              APRIL 06, 2022
             [M. R. SHAH AND B. V. NAGARATHNA, JJ.]
            Service Law – Removal of anomaly – Stepping up of pay –
     Persons who were placed lower in the upgradation list than the
     respondents, on account of upgradation granted to them under the
C
     ACP Scheme, started drawing higher pay – Writ petitions filed by
     respondents praying for stepping up of pay and for removal of the
     anomaly and for fixation of their salaries at par with their juniors
     – High Court, on considering FR 22, which provides for stepping
     up of pay and removal of anomaly by stepping up of pay of a senior
D    on promotion drawing lesser pay than his junior, allowed the writ
     petitions – On appeal, held: It was a case of removal of anomaly by
     stepping up of pay of seniors on promotion drawing less pay than
     their juniors – High Court therefore rightly relied and/or considered
     FR 22 and the order issued by the Government of India on removal
     of anomaly by stepping up of pay – High Court rightly directed the
E
     appellants to step up the pay of respondents in view of pay scale
     which has been granted to the juniors from the date they have started
     drawing lesser pay than their juniors.
           Dismissing the appeals, the Court
F          HELD:1. Considering the facts and circumstances of the
     case, it cannot be said that the original writ petitioners-
     respondents were as such claiming the stepping up of the pay
     under the ACP Scheme. Their grievance was with respect to the
     anomaly in the pay scale and their grievance was that while granting
     upgradation under the ACP Scheme, their juniors were getting
G    higher salaries than what they receive. Therefore, it was a case
     of removal of anomaly by stepping up of pay of seniors on
     promotion drawing a less pay than their juniors. The High Court
     has therefore rightly relied and/or considered FR 22 and the order
     issued by the Government of India on removal of anomaly by
H    stepping up of pay. [Paras 4, 5][25-D-E]
                                      22
      UNION OF INDIA & ORS. v. SHRI C.R. MADHAVA                              23
                   MURTHY & ANR.

      2. It was a case where a junior was drawing more pay on                 A
account of upgradation under the ACP Scheme and there was an
anomaly and therefore, the pay of senior was required to be
stepped up. Hence, in the facts and circumstances of the case,
the High Court has rightly directed the appellants to step up the
pay of the original writ petitioners-respondents keeping in view
                                                                              B
of pay scale which has been granted to the juniors from the date
they have started drawing lesser pay than their juniors.
[Para 6][26-E-F]
      CIVIL APPELLATE JURISDICTION : Civil Appeal Nos.2087-
2088 of 2022.
                                                                              C
      From the Judgment and Order dated 31.07.2021 of the High Court
of Karnataka at Bengaluru in W. P. Nos. 33038-33039 of 2016 (S-CAT).
     Ms. Madhvi Divan, ASG, M. K. Maroria, Ms. Nidhi Khanna,
Mukul Singh, Nachiketa Joshi, Advs. for the Appellants.
      The Judgment of the Court was delivered by                              D
      M. R. SHAH, J.
      1. Feeling aggrieved and dissatisfied with the impugned common
judgment and order dated 31.07.2021 passed by the High Court of
Karnataka in Writ Petition Nos. 33038-33039/2016, by which the High
                                                                              E
Court has allowed the said writ petitions, the Union of India and others
have preferred the present appeals.
      2. The facts leading to the present appeals in a nutshell are as
under: -
       2.1 That the respondents herein - original writ petitioners were       F
appointed as Lower Division Clerk on 01.02.1973 and 03.08.1973,
respectively. Thereafter, they were promoted to the post of Upper Division
Clerk on 04.10.1976. That one of the respondents was promoted to
officiate as an Inspector w.e.f. 02.04.1981 and the other respondent
was promoted to officiate as an Inspector on 13.07.1981. One Shri C.K.
Satish was appointed as an Inspector on 17.12.1981 by way of direct           G
recruitment and one Shri B.S. Srikanth was also appointed as an Inspector
by way of direct recruitment on 15.05.1982.
       In order to provide upgradation to its employees and to remove
the stagnation on a particular post, the Union of India introduced “Assured
                                                                              H
24             SUPREME COURT REPORTS                            [2022] 3 S.C.R.


A    Career Progression Scheme” (ACP Scheme) w.e.f. 09.08.1999. The
     said Shri C.K. Satish and Shri B.S. Srikanth were granted upgradation
     under the ACP Scheme. The original writ petitioners were promoted to
     the post of Superintendent of Central Excise and Customs on 02.07.2000.
     The employees, juniors to the original writ petitioners were granted
     upgradation under the ACP Scheme w.e.f. 17.12.2005 and 15.05.2006.
B
     However, it so happened that the persons who were placed lower in the
     upgradation list than the original writ petitioners, on account of upgradation
     granted to them under the ACP Scheme, started drawing higher pay.
     Therefore, the original writ petitioners submitted a representation to the
     Department for stepping up and to remove the anomaly and to fix their
C    salaries at par with their juniors. Thereafter, the original writ petitioners
     preferred O.A. Nos. 813 & 814/2014 before the Central Administrative
     Tribunal, Bengaluru Bench, Bengaluru. By the common order dated
     04.01.2016, the Tribunal rejected the said applications. Feeling aggrieved
     and dissatisfied with the common order dated 04.01.2016 passed by the
     Tribunal, the respondents herein preferred the present writ petitions before
D
     the High Court. On considering FR 22, which provides for stepping up
     of pay and the removal of anomaly by stepping up of pay of a senior on
     promotion drawing lesser pay than his junior, by the impugned common
     judgment and order the High Court has allowed the writ petitions and
     has directed the appellants herein to step up the pay of the respondents
E    herein, keeping in view the pay scale which has been granted to the
     juniors from the date they have started drawing lesser pay than their
     juniors.
           2.2 Feeling aggrieved with the impugned common judgment and
     order passed by the High Court, the Union of India and others have
F    preferred the present appeals.
           3. Ms. Madhvi Divan, learned ASG, appearing on behalf of the
     appellants has vehemently submitted that while passing the impugned
     common judgment and order, the High Court has not at all appreciated
     and/or properly considered the ACP Scheme.
G
           3.1 It is submitted that the respective original writ petitioners were
     already promoted to the post of Superintendent of Central Excise and
     Customs. It is submitted that once the respective writ petitioners were
     already granted the promotion, thereafter, there was no question of
     granting any stepping up of pay under the ACP Scheme.
H
      UNION OF INDIA & ORS. v. SHRI C.R. MADHAVA                                25
            MURTHY & ANR. [M. R. SHAH, J.]

       3.2 It is submitted that the High Court has not at all appreciated       A
the object and purpose of ACP Scheme. It is submitted that as per the
catena of judgments of this Court and various High Courts, the purpose
of the ACP Scheme/MACP Scheme is to relieve the frustration on
account of stagnation and the Scheme does not involve the actual grant
of promotional post to the employees, but to merely monetary benefits in
                                                                                B
the form of next higher grade subject to fulfilment of qualifications and
eligibility criteria. It is submitted therefore that when in the present case
the original writ petitioners were already promoted to the next higher
post – Superintendent of Central Excise and Customs and they were
placed in the appropriate pay scale of the promotional post, thereafter,
there was no question of any stepping up in the pay.                            C
        4. Having heard Ms. Madhvi Divan, learned ASG and considering
the facts and circumstances of the case, which has emerged from the
impugned judgment and order passed by the High Court, it cannot be
said that the original writ petitioners were as such claiming the stepping
up of the pay under the ACP Scheme. Their grievance was with respect            D
to the anomaly in the pay scale and their grievance was that while granting
upgradation under the ACP Scheme, their juniors were getting higher
salaries than what they receive. Therefore, it was a case of removal of
anomaly by stepping up of pay of seniors on promotion drawing a less
pay than their juniors.
                                                                                E
     5. The High Court has therefore rightly relied and/or considered
FR 22 and the order issued by the Government of India on removal of
anomaly by stepping up of pay, which reads as under: -
      “(22) Removal of anomaly by stepping up of pay of Senior on
      promotion drawing less pay than his junior - (a) As a result of           F
      application of FR 22 -C. [Now FR 22 (I) (a) (1)]. In order to
      remove the anomaly of a Government servant promoted or
      appointed to a higher post on or after 1-4-1961 drawing a lower
      rate of pay in that post than another Government servant junior to
      him in the lower grade and promoted or appointed subsequently
                                                                                G
      to another identical post, it has been decided the in such cases the
      pay of the senior officer in the higher post should be stepped up to
      a figure equal to the pay as fixed for the junior officer in that
      higher post. The stepping up should be done with effect from the
      date of promotion or appointment of the junior officer and will be
      subject to the following conditions, namely: -                            H
26             SUPREME COURT REPORTS                           [2022] 3 S.C.R.


A               (a) Both the junior and senior officers should belong to the
                same cadre and the posts in which they have been promoted
                or appointed should be identical and in the same cadre;
                (b) The scales of pay of the lower and higher posts in which
                they are entitled to draw pay should be identical;
B               (c) The anomaly should be directly as a result of the application
                of FR-22-C. For example, if even in the lower post the junior
                officer draws from time to time a higher rate of pay than the
                senior by virtue of grant of advance increments, the above
                provisions will not be invoked to step up the pay of the senior
C               officer.”
            The orders refixing the pay of the senior officers I accordance
            with the above provisions shall be issued under FR-27. The next
            increment of the senior officer will be drawn on completion of the
            requisite qualifying service with effect from the date of refixation
D           of pay.
            [G.I., M.F., 0.M. No.F.2 [78)-E.III (A)/66, dated the 4th February,
            1966)”.
            6. Therefore, it was a case where a junior was drawing more pay
     on account of upgradation under the ACP Scheme and there was an
E    anomaly and therefore, the pay of senior was required to be stepped up.
     Hence, in the facts and circumstances of the case, the High Court has
     rightly directed the appellants herein to step up the pay of the original
     writ petitioners keeping in view of pay scale which has been granted to
     the juniors from the date they have started drawing lesser pay than their
F    juniors. We are in complete agreement with the view taken by the High
     Court. No interference of this Court is called for.
           7. In view of the above and for the reasons stated above, the
     present appeals deserve to be dismissed and the same are dismissed,
     accordingly.
G
     Bibhuti Bhushan Bose                                        Appeals dismissed.




H


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