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2025 Supreme(Ker) 887
IN THE HIGH COURT OF KERALA AT ERNAKULAM
AMIT RAWAL, K. V. JAYAKUMAR, JJ.
Khadi And Village Industries Commission - Appellant
Versus
Jaya S.Ambat - Respondents
OP (CAT) NO. 76 of 2022
Decided on : 05-02-2025
Advocate Appeared:
For the Appellant : BY ADV T.RAJASEKHARAN NAIR
For the Respondent: BY ADVS. DEEPU LAL MOHAN R.V. SREEJITH AISWARYA(K/001734/2022)
IMPORTANT POINT
The court affirmed that previous judicial rulings on pay scale upgradation are binding, and the Commission must implement the upgradation effective from 20.10.2005.
Headnote:
(A) Khadi and Village Industries Commission Act, 1956 - Section 17 - Regulations of 2007 - Upgradation of pay scale - Applicants, working as Auditors, sought upgradation of pay scale in line with Central Government employees - Previous orders from Single Bench, Division Bench, and Supreme Court established the precedent for the applicants' entitlement to the upgradation effective from 20.10.2005 - The Commission's failure to implement the upgradation was quashed, affirming the applicants' rights. (Paras 1 - 12 )
(B) Judicial Precedent - The court emphasized that previous judicial determinations regarding pay scale upgradation are binding and cannot be disregarded by the Commission without valid justification. (Paras 10 - 12 )
Facts of the case:
Respondents applied for upgradation of pay scales, which was previously denied by the Commission. The court found that the Commission had failed to comply with earlier judgments directing the upgradation.
Findings of Court:
The court ruled that the applicants are entitled to the upgradation of pay from 20.10.2005, with arrears for three years prior to the petition date.
Issues: The main issues included the authority of the Commission to grant financial upgradation and the binding nature of previous court orders.
Ratio Decidendi: The court held that the Commission must adhere to prior judicial rulings and cannot arbitrarily delay the implementation of pay scale upgradation.
Result: O.P.(CAT) dismissed.
JUDGMENT :
Amit Rawal, J.
1. Respondents – applicants working as Auditors Grade –I in Khadi and Village Industries Commission have already undergone a rigmarole of previous litigation at the hands of the petitioner for non-granting them the upgradation of pay scale in parity with the counter-parts in the Central Government.
2. Khadi and Village Industries Commission has its own Act called Khadi and Village Industry Commission Act, 1956, and Regulations of 2007. Section 17 of the aforementioned Act envisaged that the Central Government after due appropriation made by the parliament by law in this behalf, pay to the commission in each financial year such sums as may be considered necessary for the performance of the functions of the Commission under this Act.
3. Similarly Regulation No.3 provides that the Commission may with the prior approval of the Central Government, adopt for its officers and the employees scales of pay and allowances taking into account the rates fixed by the Government of India for the employees of similar categories. By implying the aforementioned provisions of Act and Commission, Ext.P10 dated 20.10.2005 was passed rejecting the case of the applicants for upgradation of pay scale in the absence of any approval from the Central Government.
4. The aforementioned action was assailed before this Court vide Writ Petition No.32333 of 2008 and this Court vide judgment dated 02.02.2011 quashed the aforementioned order and directed the petitioner ie., the Commission to pass a fresh order in accordance with the observation made in the judgment.
5. The aforementioned order was assailed before the Division Bench in W.A.No.656 of 2012, which was dismissed by the Division Bench of this Court vide judgment dated 22.08.2012. Matter was also taken to the Supreme Court vide SLP (Civil) No.38471 of 2012 which was dismissed on 27.10.2014. Thereafter, an interim application No.7555 of 2015 was submitted by the Commission regarding the applicability of date of upgradation of pay scales. However, in paragraph No.11 of the application it was stated that they have intention to implement the upgradation of the pay of the respondents – applicants with effect from 20.10.2005.
6. The aforementioned interim application was rejected vide order dated 14.12.2015. Thereafter, an order dated 28.04.2016 Ext.A29 was passed granting the similar pay scale as has been granted to the Central Government employees with effect from the date of passing of the order, which was assailed before the Tribunal vide OA No.8677 of 2016. Learned Tribunal vide order aforementioned allowed the O.A.
7. Sri.Rajasekharan Nair, learned counsel appearing on behalf of the petitioner – Khadi and Village Industries Commission emphatically relied upon the provisions of Section 17 of the 1956 Act as well as Regulation 3 in support of the same contentions which were raised in the previous round of litigation as well as before the Central Administrative Tribunal to contend that until and unless there is a proposal by the Government for fixing the budget, the financial burden cannot be fastened upon the Commission to grant the pay scales at par with the counter-parts working in the Central Government. In support of the contention, also relied upon the judgment of Supreme Court in State of Punjab & Ors v. Amar Nath Goyal & Ors dated 11.08.2005 Appeal (Civil) No.129 of 2003 wherein the cut-off date fixed by the department was accepted as also in State of Rajasthan And Anr. v. Amrit Lal Gandhi dated 10.01.1997.
8. On the other hand, Sri. Deepu Lal Mohan, learned counsel appearing on behalf of the respondents submitted that finding of fact and law arrived at by the Tribunal do not require any interference as the similar stand has already been negated in the previous round of litigation. No explanation has come forth in not implementing the order as late as in April 2016, though in the application of 2015 in paragraph No.11, intention was reflected for implementing the order with effec
