JUDGMENT

R.M. Lodha, J.

1. Leave granted.

2. The short question that arises for consideration in this appeal by special leave is : is the direction issued by the High Court that the pay fixation of the appellant and similarly situated persons be done in accordance with the Government Circular dated April 16, 1971 justified or the pay fixation of these employees ought to be done as per Rule 74(b) of the Orissa Service Code.

3. The controversy arises from the facts which may be briefly noticed first. The appellant was appointed by the Government of Orissa as Overseer (Electrical) on November 16, 1964. He was deputed to serve in the Orissa State Electricity Board (for short, "OSEB") in the then pay scale of 185-00-325. Later on, the post of Overseer was re-designated as Sub-Assistant Engineer (for short, `SER'). The pay scale of SERs in OSEB was revised from time to time. Since scale of pay of SERs appointed directly by the OSEB was higher in comparison to the Sub-Assistant Engineer on deputation with OSEB and who were initially appointed by the Government of Orissa as Overseers, it was decided to provide such SERs (erstwhile Overseers) reducible personal pay. This was done so that the SE