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2012 (1) Supreme 250
SUPREME COURT OF INDIA
D.K. Jain and Anil R. Dave, JJ.
Food Corporation of India & Ors. — Appellants
versus
Bhartiya Khadya Nigam Karmchari Sangh & Anr. — Respondents
Civil Appeal No. 7268 of 2002
with
Civil Appeal No. 6878 of 2003
Decided on : 13-1-2012
Constitution of India,1950-Article 14-It is trite law that Article 14 of the Constitution, which enshrines the principle of equality, is of wide import- It guarantees equality before the law and equal protection of the laws within the territory of India- It implies right to equal treatment in similar circumstances, except in cases where the two persons form a separate and distinct class and such classification is a reasonable one based on intelligible differentia having nexus with the object sought to be achieved (Para 11)
Facts of the Case :
A. Issue in consideration in present case was whether grant of incentives only to the in-service employees of the FCI, who acquire professional qualifications after entering in service and denial of the same to those who had acquired the same professional qualifications before entering the service is invalid in law, being violative of Articles 14 and 16 of the Constitution?
Findings of the Court :
A Fundamental objective of Circular concerned was to provide an incentive to the in-service employees in order to motivate and encourage them to acquire professional qualifications in various courses, spelt out in the Circular, for their career progression.The classification adopted by FCI was between an employee obtaining a higher qualification after joining service and an employee who already possessed such qualification before joining the service. Classification sought to be made by FCI between two sets of employees bore a just and rational nexus to the object sought to be achieved by introducing the said incentive scheme.Grant of incentive in relation to in-service employees, in no way amounted to discrimination between the in-service employees and the employees recruited with higher qualification, offending either Articles 14 or 16 of the Constitution.
B. Decision of High Court, holding said Circular to be discriminatory and in violation of Articles 14 and 16 of Constitution was held unsustainable. Consequently, appeal filed by FCI was allowed and appeal preferred by Karamchari Sangh was dismissed.
JUDGMENT
D.K. Jain, J.:
1. Challenge in these appeals is to the judgment dated 23rd May, 2002, rendered by a Division Bench of the High Court of Jammu and Kashmir at Jammu in S.W.P No. 1470 of 1994. By the impugned judgment, while declaring Circular No.40 of 1985, dated 29th July, 1985, which accorded monetary incentives to in-service employees of the Food Corporation of India (for short “the FCI”) for acquiring higher qualifications, as discriminatory, the High Court has directed that if any benefit under the said Circular has been given to any employee, it shall be withdrawn.
2. Since both the appeals, one by the FCI and the other by the Bhartiya Khadya Nigam Karamchari Sangh (for short “the Karamchari Sangh”), arise out of the same judgment, the same are being disposed of by this common judgment. We may however, note that the FCI is aggrieved by the impugned judgment as a whole, whereas the Karamchari Sangh impugns the direction relating to the denial of the incentives to other employees, possessing same qualifications.
3. The material facts, giving rise to the appeal are as follows:-
The FCI was set up with the objective of safeguarding the interest of the farmers, distribution of food grains throughout the country and to maintain a satisfactory level of food grain stocks to ensure national food security. The Food Corporation of India Act, 1964, became effective w.e.f. 17th December 1964. Section 45 of the said Act empowers the FCI to make regulations for regulating the appointment, conditions of service and scales of pay of its officers and employees. Resultantly, the Food Corporation of India (Staff) Regulations, 1971, were made and came into effect from the year 1971.
4. With a view to ensure a desired degree of efficiency and mobility in the administration and management of its affairs, the FCI, vide Circular No.40 of 1985, dated 29th July, 1985, introduced a scheme providing for incentives to its employees on acquiring additional qualifications during their service in the FCI. The Circular provided for grant of two increments to employees in their respective pay scales on acquiring such professional degrees and diplomas as were mentioned in the Circular. Subsequently, another Circular No. 72 of 1986, dated 14th November, 1986, was issued, extending the benefit of one special increment to in-service employees who acquire one year diploma course in any professional subject as mentioned in the Circular.
5. The afore-mentioned Circulars were complimented by Circular No. 58 of 1987, dated 24th August, 1987, which clarified that the increments shall only be in the form of a personal pay to an official till his promotion to the next higher grade, which shall be subsequently absorbed in the basic pay at the time of pay fixation for the promoted post.
6. The Circular of 1985 was challenged by one Shri. V.K. Tandon, vide S.W.P. No. 1146 of 1986, on the ground that it resulted in discrimination between in-service employees acquiring additional qualification and the persons recruited by the FCI already possessing the prescribed additional qualification. The High Court of Jammu and Kashmir, vide order, dated, 13th October, 1992, while allowing the intervention application of the Karamchari Sangh, allowed the petition and directed that the writ petitioner be granted two additional increments under the said Circular. Letters Patent Appeal against the said judgment came to be dismissed on the ground of delay. Nonetheless, the Zonal Office of the FCI, vide letter dated 19th May, 1994, notified that the aforesaid judgment was a judgment in personam.
7. Probably, the said clarification prompted the Karamchari Sangh to file the writ petition (W.P. No.1470 of 1994) in which the impugned judgment has been delivered. As aforestated, the High Court has held that, the said Circular is discriminatory and violative of Article 14 of the Constitution of India, 1950 (for short “the Constitution”) and has directed the FCI not to give effect to th
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