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2019 Supreme(SC) 1307

SUPREME COURT OF INDIA
INDU MALHOTRA, UDAY UMESH LALIT, JJ.
Tamil Nadu Rural Development Engineers & Assistant Engineers Association – Appellant
Versus
Government of Tamil Nadu and Others – Respondents
Civil Appeal Nos. 10029, 10030-10189, 10190, 10191, 10192 of 2017
Decided On : 28-11-2019

Advocates Appeared:
For the parties :R. Venkataramani, Yashraj Bundela, Praveen Vignesh, S. Ravi Shankar, Dushyant Dave, P.S. Patwalia, Prashant Bhushan, N. Subramaniyan, Pranav Sachdeva, Ms. Neha Rathi, Jatin Bhardwaj, Surinder Kr. Gupta, Vijay Narayan, General Jayanth Muthuraj, AAG (TN) Balaji Srinivasan, AAG for TN Ms. A. Jaswanthi, C.V. Vigneshwaran, K. V. Vijayakumar, B. Vinodh Kanna, Lenin Rajasehar, Mrs. S. Yamunah Nachiar, T. R. B. Sivakumar, B. Balaji, N. Subramaniayan, S. Muthu Krishnan, P. Soma Sundaram, K. V. Vijayakumar, Pranav Sachdeva, Gopal Shankar Narayanan, P. Arun Kr, G. Suvin Kumaran, Ms. Shivani Jena, Sriram P., Ms. Aryama Sundaram, Sr. Adv M.A. Gowthaman, Ms. T. Archana, Gaffar, Uma Prasuna Bachu, R. Venkataramani, S. Ravi Shankar, Ms. S. Yamunah Nachiar, Senthil Jagadeesan, Ms. Sonakshi Malhan, Ms. Suriti Chowdhary, Ms. Mrinal Kanwar, A. Thyagarajan, R. Rajaramani, S. Mahendran, G. Umapathy, Ms. Vaishnavi, Ms. Pavitra, Rakesh K. Sharma, Vijay Kumar, VinayNavare, Swarnam J. Rajagopal, Ms. S. Lakshmikanth, Anish R. Shah, S. Beno Bencigar, P.R. Kovilan, Prem Narayan, Parijat Kishore, S. Nanda Kumar, Ms. Deepika Nandakumar, M.S. Saran Kumar, Naresh Kumar, Advocates

IMPORTANT POINTS
(1) Prescription of pay-scales and assessment in that behalf is a complex matter which requires expertise.
(2) Anomaly in pay scale can be removed by Government any time.

Headnote:

Service Law – Pay Scale – Removal of anomalies – Prescription of pay-scales and assessment in that behalf is a complex matter which requires expertise – 6th Central Pay Commission comprising of experts in field had recommended certain pay-scales for various posts – Official Committee which comprised of Principal Secretary to State of Tamil Nadu, Home Department, as Chairperson with Principal Secretary, Finance Department; Principal Secretary, Personnel and Administrative Reforms Department; and Principal Secretary, School Education Department as Members, had examined the matter and made certain recommendations which were accepted by Government by GO No.234 dated 01.06.2009 – However, One Man Commission appointed to consider anomalies recommended something which was far in excess of what was accepted by GO No.234 dated 01.06.2009 which in turn was in tune with recommendations of 6th Central Pay Commission – Government had accepted recommendations of One Man Commission but if further anomalies were found which called for action on part of the Government, any exercise to reconsider the matter by State Government could not be faulted nor could constitution of PGRC be said to be invalid or illegal – If there was any infirmity in exercise of power by PGRC in not granting adequate notice and hearing to the concerned, such infirmity could certainly be sorted out – No error in approach of and directions issued by Division Bench of High Court – Recommendations of 7th Central Pay Commission have since been made and issue regarding implementation of such recommendations is presently under active consideration – Present matters which pertain to recommendations of 6th Central Pay Commission need to be resolved at the earliest – Appeals disposed of with directions. (Paras 15, 16, 17, 20, 21 and 22)

Facts of the case:

all Assistant Engineers who were earlier put in the pay-scale of Rs.9300-34800 with Rs.4700 as Grade Pay were thus placed in the revised scale of pay of Rs.15600-39100 with Rs.5400 Grade Pay, as a result of GOs dated 26.08.2010 and the benefit in terms thereof was extended to the concerned persons and their pay-scale stood revised accordingly. Present Appeals arise out of the judgment and order dated 27.02.2014 passed by the High Court of Judicature at Madras in Writ Appeal No.504 of 2012 and all other connected matters.

Findings of Court:

Observations in the present order have been made purely from stand point of consideration whether decision of the State Government in constituting the PGRC was correct or not and not by way of reflection on merits of the matter. The matter shall be considered by PGRC and State Government purely on merits and uninfluenced by any of observations made by us.

Result : Appeals disposed of with directions.

JUDGMENT :

UDAY UMESH LALIT, J.

1. These Appeals arise out of the judgment and order dated 27.02.2014 passed by the High Court of Judicature at Madras in Writ Appeal No. 504 of 2012 and all other connected matters.

2. After the recommendations were given in March 2008 for revision of pay-scales by the 6th Central Pay Commission, an Official Committee was constituted by the Government of Tamil Nadu to examine and make recommendations about the pay-scales of Government Employees in consonance with the recommendations made by the 6th Central Pay Commission. This Official Committee submitted its report on 27.05.2009 making certain recommendations on “pay-scale to pay-scale” basis i.e. to say that for the existing scales of pay, the revised pay (pay band) and grade pay were recommended. The recommendations were accepted by the State Government by GO No. 234 dated 01.06.2009. For the present purposes the relevant part of GO No. 234 may be quoted here:

    “(d) Further, the Government of India has granted two different revised scales of pay for the existing scale of Rs. 8000-13500, one for promotees on the revised pay scale of Rs. 9300-34800 (Pay Band-2) with a Grade Pay of Rs. 5,400/- and the other for direct recruits (Group-A entry) on the revised pay scale of Rs. 15600-39100 (Pay Band-3) with the same Grade Pay of Rs. 5,400/-. The scale of pay of Section Officers in Central Secretariat has been placed in the Pay Band-3 i.e. Rs. 15600-39100 + Grade Pay of Rs. 5400/-. As the State Government is extending the same pay scale to the Section Officer/Private Secretary in Tamil Nadu Secretariat Service on par with their counterparts in Central Secretariat, the Government direct that the Section Officer/Private Secretary in Secretariat/High Court/ Tamil Nadu Public Service Commission shall also be placed in Pay Band-3. Further, all middle management posts, such as Administrative Officer, Accounts Officer, Deputy Collector etc. including Group-I entry level posts are presently granted a uniform scale of pay both for promotees and direct recruits. Hence, the Government direct that all the posts carrying the present scale of pay of Rs. 8000-13500 shall be placed uniformly in Pay Band-3 and given the revised pay scale of Rs. 15600-39100 with the Grade Pay of Rs. 5,400/-. Further, taking note of the fact that the same Grade Pay is allowed to the employees in Pay Band-2 from Rs. 5000-8000 to Rs. 6500-10500 in the Government of India, the Government has modified the Grade Pay as shown below so as to maintain the existing local relativity:-

S. No.

Existing Scale of pay (w.e.f. 1-1-96)

Revised Pay (Pay Band)

Revised Grade Pay

1.

5000-8000

9300-34800

4,200

2.

5300-8300

9300-34800

4,300

3.

5500-9000

9300-34800

4,400

4.

5900-9900

9300-34800

4,500

5.

6500-10500

9300-34800

4,600

6.

6500-11100

9300-34800

4,700”

In terms of GO No. 234 notional effect was given from 01.01.2006 while monetary benefits were accruable to the employees w.e.f. 01.01.2007. Separate Government Orders were issued in respect each of the departments based on GO No. 234.

3. Thereafter, One Man Commission headed by Mr. Rajiv Ranjan, Principal Secretary to the Government of Tamil Nadu, Industries Department was constituted to rectify pay anomalies which had arisen as a result of implementation of the revised pay-scales pursuant to GO No. 234. Said One Man Commission submitted its report on 31.03.2010. The State Government, through GO Nos. 254 to 340 (86 GOs) accepted the recommendations of The One Man Commission. By way of illustration, GO No. 312 dated 26.08.2010 with respect to certain categories of Public Works Department stated as under:

    “The One Man Commission constituted in the G.O. second read above to examine anomalies, if any, consequent on the implementation of the recommendations of the Official Committee 2009

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