1999 Supreme(SC) 916

1999(7) Supreme 398
Supreme Court of India
(From Rajasthan High Court)
Mrs. Sujata V. Manohar & A.P. Mishra, JJ.
Rajasthan Agricultural University, Bikaner -Appellant
versus
Mitha Lal Kothari & Anr. etc. -Respondents
Civil Appeal No. 3329 of 1998
With
C.A. No. 3332, 3334, 3335, 3330, 3336, 3338, 3341, 3342, 3343 of 1998
Decided on 24-8-1999
Counsel for the Parties :
For the Appellant : P.P. Rao, Sr. Advocte, Sushil Kumar Jain & A.P. Dhamija, Advocates.
For the Respondents : L.N. Rao. Braj K. Mishra, Ejaz Maqbool, Sudhir Ranjan, Ms. Sandhya Goswami, Advocates.

Headnote:Service Law-Fixation of pay scale-Rajasthan Government employees working is Directorate of Agriculture transferred to Agriculture university-Pending final absorption in university, employees were to be on deputation from 27.12.1975-Appellants were equ­ated with post of Research assistants and Lecturers-Scale of pay they were drawingimme­diately before date of transfer protected-Appellants were absobed w.e.f. 1.4.1977-Pay of Government servant sevised from 1.9.1976-Under Rajasthan Civil Service (Revised pay Scale) Rules entire amount of dearness pay and ad hoc relief and additional dear­ness allowance as admissible on 1.9.1976 was merg­ed and treaded as basic pay for fixaction of new pay scales-Appel­lants were drawing revised pay scale-In university revised U.G.C. Sale basic pay fixed was inclusive of dearness allowance etc-Univer­sity as per orders of Government deducted element of additional dearness allowance granted between 1.1.1973 and 1.9.1976 in respect of Government servants who were absorbed in university for fixation and fillity in approviate scale in university - Appeallants challenging fixaction excluding nine additional dearness allowance-Not sustainable-In order to have an equivalence between revised scales of pay of State Government and new UGC Scale of pay it is necessary to exclude notionally dearness allow­ance during period 1.1.1973 and 1.9.1976-Entre purpose is to exclude double benefit of dearness allowance.

       Held : The short question that requires consideration is whether the fitment of the respondents in the new UGC scales is properly done and whether the order of the University dated 28.7.1980 which is in ac­cordance with the Government Memorandum of 21.2.1979 provides a cor­rect basis for the fitment of employees drawing revised Government scales of pay into the neew UGC scales of pay. The manner in which employees getting Government scales of pay were to be fitted in the University scales of pay was set out in the initial order dated 27.12.1975 under which the employees of the research wing of the Directorate of Agriculture were transferred to the University and were absorbed thereafter in the University. The rights of the transferred employees are, therefore, governed by the order of 27.12.1975. At the date of this order neither the revised Government scales of pay nor the new UGC scales of pay had come into effect. Clause 6(4) of the order of 27.12.1975 clearly provided for the manner in which the scales of pay under the Government and under the University were to be equated. The initial pay of the Government servant in the University scales of pay was to be fixewd at an equal stage if such a stage was available under the University pay scales or at the next higher stage if an equal stage was not available. The order further provided under Sub-clause 6(4)(v) that in the event of a revision of the pay scales of the University teachers the revised pay scales shall be given to the transferred emplo­yees subject to the fulfilment of any conditions relating to qualifications. Therefore, basic pay drawn under the Government scale was to be protected under the University scales. The problem in the present case arises on account of the merger of dear­ness allowances in the basic scale of pay of the Government employees with effect from 1.9.1976. Had the revised UGC scales of pay also provided for such a merger of dearness allowances in the basic pay with effect from 1.9.1976, there would have been no problem. The revision of pay scales under the Government as well as under the new UGC pay scales would have been on the same basis and the ordinary principles of equation of pay when a fitment is made in a new pay scale, would have applied. However, the new UGC pay scales had merged only the dearness allowances with basic pay upto 1.3.1973. There was thus a period between 1973 and 1976 when under the payable and it continued to be paid thereafter; while under the revised Government scales of pay dearness allowances were merged as of 1.9.1976, and only thereafter additional dearness allowance was payable. If we accept the contention of the respondents, the respondents would get the benefit of having their basic pay in the UGC scale fixed not just on the basis of their original basic pay but also by inclusion of dearness allow­ances in the basic pay during the period 1.1.1973 to 1.9.1976. And they would also get the benefit of dearness allowande for the period 1.1.1973 to 1.9.1976. The Government as well as the University have, therefore, rightly held that in order to have an equivalence between the revised scales of pay of the state Government and the newe UGC scales of pay, it is necessary to exclude notionally the dearness allowances during the period 1.1.1973 and 1.9.1976 which were merged in the basic pay under the revised scales of pay of the Government but which were not so merged when the revised UGC secales were prescribed. Therefore, a proper equivalence between the two scales of pay can come about only when the basic pay under both the scales is calculated on a common basis. That is why the orders of the Government as well as the University exclude from the calculation of the basic pay, the dearness allowances drawn by Government servants between 1.1.1973 and 1.9.1976 for the purpose of a notional calculation of basic pay to find a corresponding equivalence in the UGC revised scales of pay. The entire purpose of the University order of 28th of July, 1980 is to exclude a double benefit of dearness allowances to the Government employees who are to be fitted in the new UGC scales of pay. (Para 9)