ORDER :

1) Leave granted.

2) The instant appeal has been preferred by the ex- servicemen, challenging the impugned order dated 07.02.2020¹[passed by Division Bench of Kerala High Court in W.A. No. 2094/2019.], whereby the writ appeal was allowed and the order dated 11.04.2019, ²[passed by Single Bench in WP (C) No. 26946 of 2018.] allowing the writ petition was set-aside.

3) The appellants after their retirement from Indian Navy, were re-employed with the respondent-bank as Single Window Operator-A (SWOA) in the Clerical Cadre. The discord between the parties arose when the respondent-Bank re-fixed the pay of the appellants at an amount lower than what they were re-employed at. This was challenged before the Single Bench in the writ petition, which was allowed, however in appeal, the judgment of the Single Bench was set-aside by Division Bench. Hence, the present appeal.

4) The facts in brief are that, post-retirement from the Indian Navy, the appellants were re-employed with the respondent-Bank in between 2015-2017. On re-employment, appellants nos. 1-4 were initially allowed to draw a basic pay of Rs. 40,710/- and appellant No. 5 was of Rs. 34,160/-. Subsequently, the Indian Banks Association, vide letter dated 17.05.2018, (hereinafter, “IBA Clarification”), issued a clarification regarding ‘pay- fixation of ex-servicemen’ advising that maximum basic pay for ex-servicemen be fixed at Rs. 31,540/-. In this view, the respondent-bank vide HRMD Circular No. 413/2018 dated 22.06.2018 (in short “HRMD circular”), directed that the pay-fixation of all ex-servicemen/ex- commissioned officers be made accordingly. Thereafter, vide letters dated 24.07.2018 and 25.07.2018, basic pay of all the appellants was re-fixed at Rs. 31,540/-.

5) Being aggrieved, the appellants challenged the re- fixation before the Single Bench of the High Court, inter-alia asking the following reliefs:

“a. To call for the records leading to Exhibit P21 to P25.

b. To issue a writ of Certiorari setting aside Exhibit P21 to P25.

c. To declare that Exhibit P20 is not applicable to Petitioners for the purpose of fixing Petitioners pay.

d. To declare that Petitioner No. 1 to 5 are entitled and eligible to the pay initially fixed by the 1st respondent as per Exhibit P15, 16, 17, 18 and 19 respectively in consonance with the Exhibit P1 and other relevant statutory provisions.

e. To issue a writ of Mandamus or any other appropriate writ order or direction directing the 1st Respondent to refund the amount deducted from the salary of Petitioner No.1 to 5 in furtherance of Exhibit P21 to P25 respectively.

AND

f. Pass such other orders as this Hon’ble Court may deem fit to grant in the circumstances of the case.”

6) The assertion of the respondent-Bank is that the pay fixation of appellant nos. 1 to 4 was inadvertently made at the 27th stage of the cadre and that of appellant no. 5 at 22nd stage at the time of re-employment. The pay scale beyond 20th stage is applicable only to the employees who have reached stagnation. In compliance with the HRMD circular, the pay of the appellant was re-fixed to the 20th stage of the cadre with a basic pay of Rs. 31,540/-. Additionally, the basic pay being drawn by the appellants at the time of re-employment was exceeding the minimum of the scale of pay of the General Manager in the respondent-Bank and was in contravention to Clause 2.1(iii) of the guidelines³[Guidelines for fixation of pay of ex-servicemen/ex-ECOs/SSCOs, re-employed in Public Sector Banks etc. on or after 01.01.2006 – guidelines, regarding.] dated 17.02.2014 (in short “2014 guidelines”) issued by Department