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2025 Supreme(Mad) 2901

IN THE HIGH COURT OF JUDICATURE AT MADRAS
R.N. MANJULA, J.
R.N. Damodarun - Appellant
Versus
The Secretary to Government of India Ministry of Heavy Industries & Public Enterprises Department of Public Enterprises, New Delhi - Respondent
W.P. Nos. 25428 of 2017, 1506, 13739 of 2018
Decided On : 15-04-2025


Advocates:
Advocate Appeared:
For the Appellants : Vijay Narayan, C. Vigneswaran
For the Respondents: C. Chandrasekaran, N. Vijaya Baskar, A.R.L. Sundaresan, B. Gautham

Promotion without parity in pay creates inequality, violating Article 14, necessitating correction of disparities in public service employment.

Headnote:(A) Industrial Disputes Act - Section 18(1) - Constitution of India - Article 14 - Pay revision - Employees promoted from workmen to officer cadre challenged a pay anomaly wherein juniors were earning more than seniors due to selective application of a 6% benefit based on revised working hours - Court finds that promotion without parity of pay creates inequality and violates fundamental fairness. (Paras 7, 40)

(B) Anomaly in pay structure due to selective benefits for certain employees must be rectified to ensure equality and fairness in promotions. (Paras 8-40)

Facts of the case:
Petitioners, former workmen, promoted to officer cadre, argued that they were denied a 6% wage increase that was granted to juniors promoted later. They sought a pay step-up to match juniors' salaries citing principles of equality under Article 14 and the existence of an acknowledged pay disparity.

Findings of Court:
The court identified the pay disparity between juniors and seniors as unjust and directed that the petitioners' pay be rectified to match that of their juniors, including the payment of arrears with interest.

Issues: The main issue before the court was whether the failure to provide equal pay for equal work, resulting in juniors earning more than seniors, constituted a violation of the right to equality.

Ratio Decidendi: The court emphasized that unequal pay for equal work undermines the promotion process and violates principles of equality, necessitating the stepping up of pay for senior employees to that of their juniors.

Result: Writ petitions allowed; respondents directed to rectify pay anomaly and ensure parity.

Table of Content
1. revision of wages and working hours for employees. (Para 1 , 2 , 3 , 4)
2. disparity in pay between seniors and juniors. (Para 5 , 6)
3. arguments on the right to equal pay under article 14. (Para 7 , 8 , 10 , 12)
4. claims based on varying work conditions leading to pay disparity. (Para 13 , 14 , 15)
5. precedents on stepping up pay to correct senior-junior disparity. (Para 16 , 17 , 19)
6. court emphasizes fairness and natural justice in salary revisions. (Para 18)
7. application of principles governing stepping up of pay. (Para 20 , 21 , 22 , 24)
8. compensation in form of leave versus additional pay. (Para 23 , 27 , 28 , 31)
9. government's duty to alleviate pay anomalies. (Para 29 , 30 , 32)
10. necessity for fairness in pay disparities arising from promotions. (Para 33 , 34 , 35 , 36 , 37)
11. court's directive for rectifying pay discrepancy. (Para 38 , 39 , 40)

ORDER :

1. The petitioners are the employees of the second and third respondents-Corporations. There are two categories in the employees of the Corporations, namely, workmen and non-workmen. While the wages revision for the workmen is usually settled through the memorandum of settlement entered by the Employees Union and the second and third respondents-Managements under Section 18 (1) of the Industrial Disputes Act. The pay for non-workmen will be revised in accordance with the pay revision provisions.

2. On 12.12.2012, a settlement came into effect by giving notional effect for the period between 01.01.2007 to 31.12.2008 and thereafter, by giving actual benefits. Persons who are workmen as on 01.01.2007 and who have been promoted as officers before or after the settlement dated 12.12.2012 are entitled to benefits of settlement till the time they were working in the capacity of workmen.

3. There is a change in working hours for workmen with effect from 16.01.2013 and the said clause also forms part of the settlement. As per the said change in working hours, the work hours have been increased and in view of that, an additional amount of 6% of basic pay is added to workmen from the date of implementation. Clause 9.2 of the settlement would state that the fitment benefits as on 21.12.2006 and as seen under clause 6.0 will be implemented with an additional amount of 6% of the additional basic pay.

4. The above benefit can be availed only by those who continue to remain as workmen on 16.01.2013. This is the date from which the revised working hours is being implemented. Even though these petitioners continued to be workmen as on 01.01.2007 and got the benefit of settlement, they have been promoted before 16.01.2013 and hence, they are not entitled to 6% of additional basic pay revision for fitment of revised pay.

5. So those workmen, who had the benefit of 6% in accordance with Clause 9.2 and who got promotion to officer after 16.01.2013, were getting pay more than the workmen who have been promoted as officers prior to 16.01.2013. In other words, persons who were junior to petitioners were drawing more pay than the petitioners who were seniors to them.

6. The petitioners have submitted various representations to address the anomaly by seeking to step-up their pay. Although assurances were given regarding the implementation of the pay revision, no action was taken. Therefore, the petitioners have filed this Writ Petition, seeking a direction to the respondents to rectify the disparity and to ensure that the issue is resolved within a stipulated time frame.

7. Mr. Vijay Narayan, learned Senior Counsel for the petitioners, submitted that, extending the special benefit of 6% as one-time settlement only to certain group of workmen is arbitrary and violative of right to equality prescribed under Article 14 of Constitution of India.

8. As the petitioners were promoted from workmen category from 2007 to 2012, they are deprived to get the special benefit of 6% increase. The respondents had also accepted the existence of anomaly between juniors and seniors and replied to the

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