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2026 Supreme(Guj) 96

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
BHARGAV D. KARIA, L.S.PIRZADA, JJ.
State of Gujarat & Anr. - Appellants
Versus 
Gujarat Rajya Gram Sevak Mahamandal & Ors. – Respondents 
R/Letters Patent Appeal No. 20 Of 2026 In R/Special Civil Application/13916/2015 With Civil Application (For Stay) No. 1 Of 2025 With R/Letters Patent Appeal No. 876 Of 2025 In R/Special Civil Application No. 16350 Of 2015 With Civil Application (For Interim Relief) No. 1 Of 2025 With R/Letters Patent Appeal No. 877 Of 2025 In R/Special Civil Application No. 14506 Of 2015 With Civil Application (For Stay) No. 1 Of 2024 With R/Letters Patent Appeal No. 878 Of 2025 In R/Special Civil Application No. 26914 Of 2022 With R/Special Civil Application No. 26914 Of 2022 With R/Letters Patent Appeal No. 879 Of 2025 In R/Special Civil Application No. 15095 Of 2015 With R/Misc. Civil Application No. 890 Of 2025 In R/Special Civil Application No. 13916 Of 2015 
Decided On : 10-02-2026

Advocates Appeared:
For the Appellants : Ms. Shruti Dhruve, AGP.
For the Respondents: Mr. N.K. Majmudar.

The court affirmed that the pay scale adjustments for employees based on completion of service are lawful and maintain distinctions made by prior government resolutions.

Headnote:(A) Government Resolution dated 16.08.1994; Government Resolution dated 14.08.1998; Gujarat Civil Services (Revision of Pay) Rules, 1998 - First higher grade pay scale - The court ruled that respondents-original petitioners not entitled to higher grade pay scale of Rs. 5000-8000 but eligible for Rs. 4500-7000 after nine years of service post 01.01.1996 due to applicable revisions - Discrimination argued based on timing of service completion. (Paras 3.1 to 15)

(B) Discrimination - Employees who completed service before and after 01.01.1996 are entitled to different pay scales as per Government Resolutions, affirming reasonable distinctions in employment entitlements. (Paras 5, 10, 12)

(C) Claim rejection - Appellants maintained revisions consistent with statutory mandates and prior resolutions, ensuring no anomalies exist in prescribed pay scales. (Paras 4, 15).

Facts of the case:
Appeals from the State against common judgment allowing writ petitions for higher pay scales of respondents who hadn't completed requisite service duration.

Findings of Court:
Respondents entitled to Rs. 4500-7000, not entitled to Rs. 5000-8000.

Issues: Discrimination between employees based on service completion before and after cut-off.

Ratio Decidendi: The court held that differences in pay scales respect legislative intent and resolve potential inequalities without undermining the rules set by the government.

Result: Appeals allowed.

Table of Content
1. entitlement to higher grade pay scales after nine years of service. (Para 3)
2. correct pay scale entitlement based on service completion date. (Para 4 , 5)
3. arguments about discrimination in pay scale application. (Para 6)
4. rules governing pay scale application and their implications. (Para 8 , 9 , 10 , 11 , 12 , 13)
5. rejection of higher grade pay claim based on existing scales. (Para 14 , 15)
6. clarification on recovery of excess payments and contempt proceedings. (Para 16 , 17 , 18)

ORDER :

BHARGAV D. KARIA, J.

1. Heard learned Assistant Government Pleader Ms.Shruti Dhruve for the appellants-State and learned advocate Mr.N.K.Majmudar for the respondents.

2. By this Appeal under Clause 15 of the Letters Patent, 1865, the appellants-State have challenged the common Judgment and Order dated 24th October, 2024, whereby, the Writ Petitions filed by the respondents are allowed by directing the appellant-State Authority to revise their First higher grade pay scale.

2.1 These Appeals require consideration and hence, the same are Admitted and having regard to the controversy in narrow compass, with the consent of the learned advocates for the parties, the same are taken up for hearing today.

3. The brief facts of the case are as under:

3.1. As per the Government Resolution dated 16.08.1994, when no promotional avenues are available with the Government Employee, higher grade pay scale is provided on fulfilling the conditions stipulated in the said Government Resolution. According to the terms of the Government Resolution dated 16.08.1994, the First higher grade pay scale is to be given on completion of nine years of service as on 01.01.1996.

3.2. Admittedly, the respondents-original petitioners have not completed nine years of service as on 01.01.1996 as Gram Sevaks.

3.3. The State Government by Government Resolution dated 07.01.1998 applied the revision of pay scale on the recommendation of the 5th Pay Commission. Accordingly, the pay scales were revised on scale-to-scale basis. Admittedly, the respondents-original petitioners were in the pay scale of Rs. 1200- 2040 and the pay scale on scale-to-scale basis was revised to Rs. 4000-6000 being corresponding pay scale. On perusal of the applicable revised pay scale schedule, it appears that for three scales of Rs.1200-2040, Rs.1320-2040 and Rs.1200-1800, revised pay scale is prescribed as Rs.4000-6000 with effect from 01.01.1996. Accordingly, the pay scale of the petitioners was revised to Rs.4000-6000.

3.4. By Government Resolution dated 14.08.1998, in view of the amendment of the Gujarat Civil Services (Revision of Pay) Rules, 1998 (for short ‘the Rules’), the basic pay scale was revised with effect from 1st January 1996 as per the recommendations of the 5th Pay Commission. Accordingly, the Government Resolution dated 16.08.1994 was revised to provide the higher scale with effect from 1st January 1996. As per the Government Resolution dated 14.08.1998 pursuant to the Rules, the 1st higher pay scale of Rs.4000-6000 is provided as Rs. 4500-7000 (page No.120 of the petition).

3.5. Accordingly, a Government Resolution was issued on 7th December, 2013 by the Panchayat and Rural Housing Department to prescribe the First higher grade pay scale of Rs. 5000-8000 for the Government Employees who have completed nine years of service as on 01.01.1996, whereas, admittedly, the Government Employees who have completed nine years of service after 01.01.1996, their pay scales were revised to Rs.4000-6000 and as per the Government Resolution dated 14.08.1998, their First Higher grade scale would be Rs.4500-7000.

3.6. In view of the above undisputed facts emerging from the record and the amendment of the Rules, the consequential Government Resolutions for granting First higher grade pay scale were issued from time to time.

4. In view of above facts, the respondents- original petitioners were not entitled to the First higher grade pay scale of Rs.5000-8000 as claimed by them, but they were only

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