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Supreme Court of India

UNION OF INDIAversusB.M. JHA

Citation
2007 INSC 1101
Decided
24 October 2007
Disposal
Appeal(s) allowed

Holding

Arrears of salary cannot be granted for a retrospective promotion where the employee has not performed the duties of the promoted post.

Summary

The respondent, an incumbent employee, was granted a retrospective promotion effective 27 August 1984 and claimed arrears of pay and allowances for the period up to 5 February 1992. The Central Administrative Tribunal and the Delhi High Court allowed the claim. The appellant challenged these orders before the Supreme Court, arguing that arrears cannot be awarded where the employee did not actually perform the duties of the promoted post. The Court reiterated the established principle of "no work, no pay," relying on State of Haryana v. D.P. Gupta, A.K. Soumini v. State Bank of Travancore, and State of Andhra Pradesh v. K.V.L. Narasimha Rao. Consequently, the Court held that arrears of salary are not payable for a notional, retrospective promotion. The appeal was allowed and the orders of the Tribunal and High Court were set aside.

Issues considered

  • Whether an employee promoted retrospectively is entitled to arrears of salary and allowances for the period before actually assuming the higher post.

Subjects

retrospective promotionarrears of payno work no payservice lawadministrative tribunalhigh courtSupreme Courtemployee benefits

Judgment

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    .,.......
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                                        UNION OF INDIA                                   A
                                                  "·
                                              B.M.JHA

                                       OCTOBER 24, 2007

                      [A.K. MATHUR AND MARKANDEY KATJU,JJ.)
                                                                                         B
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 y·
                     Service Law:
                     Retrospective promotion-Claim for arrears of pay and
                allowances from date of promotion-Allowed by Central
                                                                                      c
                Administrative Tribunal as also by High Court-HELD: In the light
                ofthe consistent view taken by this Court, arrears ofsalary cannot be
                granted in view of the principle of no work no pay in case of
                restrospective promotion-Consequently, the orders ofthe High Court
                and the Tribunal are set aside-Principle ofno work, no pay.           DI
y
                     State ofHaryana and Ors. v. D.P. Gupta and Ors., [1996] 7 SCC
                533; A.K Soumini v. State Bank ofTravancore, JT (2003) 8 SC 35
                and State ofAndhra Pradesh v. K. V.L. Narasimha Rao and Ors., JT
                (1999) 3 SC 205, relied on.                                              E
                    CIVIL APPELLATE JURISDICTION: Civil Appeal No. 5128 of
                2001.
                    From the Judgment and final Order dated 17.05.2000 of the High
                Court of Delhi at New Delhi in C.W. No. 2641 of2000.
                                                                                         F
-\,,.                 B.B. Singh, Sunita Sharma, D.S. Mahra and Shreekant N. Terdal
                for the Appellant.
                    Anil Kumar Jha and Alka Jha for the Respondent.
                    The following Order of the Court was delivered
                                                                                         G
                                                 ORDER
 ~                  Heard learned counsel for the parties.
                     This appeal by Special leave is directed against the judgment and
                                                 661                                     H
                   SUPREME COURT REPORTS                   [2007] 11 S.C.R.
                                                                                 \   \
    662
                                                                                 ---(
A order dated 17.5.2000 passed· by the learned Division Bench of the High
  Court of Delhi whereby the learned Division Bench upheld the order dated
  11th Januruy, 2000 passed by the Central Administrative Tribtmal, Principal
  Bench. None appears for the appellant.
          The Tribunal has taken the view that since the respondent herein has
B been granted retrospective promotion from 27.8.1984 he must be paid
    arrears of pay and allowances for the higher post for the period 27th
    August, 1984 till 5th February, 1992.                                        A.
                                                                                     ..,.,
         Aggrieved against the order of the Tribunal dated 1ith January,
    2000 the Appellant herein filed a writ petition before the High Court and
c   the High Court dismissed the writ petition affirming the order of the
    Tribunal. Hence the present appeal.
        We have heard learned counsel for the parties. It was argued by
  learned counsel for the respondent that when a retrospective promotion
  is given to an incumbent normally he is entitled to all benefits flowing
D
  therefrom. However, this Court in the case of State of Haryana & Ors.
  V. D.P. Gupta & Ors., [1996] 7 sec 533 and followed in the case of                  y  \

  A.K Soumini v. State Bank ofTravancore JT (2003) 8 SC 35 has taken·
  the view that even in case of a notional promotion from retrospective date,
  it cannot entitle the employee to arrears of salary as the incumbent has
E not worked in the promotional post. These decisions relied on the principle
  of no work no pay. The learned Division Bench in the impugned judgment
  has placed reliance on the case of State ofAndhra Pradesh v. K V.L.
  Narasimha Rao & Ors., (1999) 3 SC 205. In our view, the High Court
  did not examine that case in detail. In fact, in the said judgment the view
F taken by the High Court of grant of salary was set aside by this Court.
                                                                                     .._'>--
  Therefore, we arc of the view that in the light of the consistent view taken
  by this Court in the abovementioned cases, arrears of salary cannot be
  granted to the respondent in view of the principle of no work no pay in
  case of retrospective promotion. Consequently, we allow this appeal and
G set aside the impugned order of the High Court dated 17.5.2000 passed
  by the Division Bench of the High Court as also the order dated 11.1.2000
  passed by the Central Administrative Tribunal, Principle Bench.                    )
          The appeal is allowed. No order as to costs.

H RP.                                                       Appeal allowed.


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