Government approval is mandatory for extending pay scales to Corporation employees, as per established directives, negating routine claims for pay parity with State employees.

Judgment :

S.M. Subramaniam J.

1. Under assail is the Writ Order dated 01.02.2021 passed in W.P.No.13025 of 2007. State of Tamil Nadu represented by Secretary to Government, Environment and Forests Department and Managing Director, Arasu Rubber Corporation Limited jointly filed the present Intra Court Appeal.

2. The core issue raised on behalf of the appellant is whether Lineman working in Arasu Rubber Corporation Limited is entitled to get the equivalence scale of pay as applicable to Lineman working in the Government of Tamil Nadu Department. Writ prayer is to quash the rejection order passed by the Government and to fix the scale of pay for the post of Lineman at Rs.610-1075 from 01.06.1988 and subsequent fixation and to fix 5% personal pay from 01.08.1992 onwards. Writ Court, relying on Rule 34 of Arasu Rubber Corporation Service Rules granted the relief. Thus, the present appeal came to be instituted.

3. Mr.Muthukumar, learned Additional Advocate General appearing on behalf of the appellants would mainly contend that for implementing the equivalent scale of pay, Government approval is mandatory. It is true that Rule 34 contemplates that the pay and allowances will be paid to Corporation employees at the rates applicable to State Government employees from time to time. Approval of the Government is required and in the present case, the approval, since rejected, the respondent is not entitled for the pay and allowances as applicable to employees of the State Government. In support, he would submit the Government Letter Nos.1999/Finance (BPE)/2025 dated 04.10.2025, e2868988/Finance (BPE)/2025-1 dated 25.02.2025, 38307/Finance (BPE)/2022-1 dated 18.08.2022 and 48070/BPE/2010-1 dated 23.09.2010. These letters would indicate that "No Government Order applicable to Government employees shall be adopted by Public Sector Undertakings / Statutory Boards without the prior approval of the Government unless such extension has been explicitly notified; before placing any such proposal before the Board of Directors, the full financial implications, sustainability of the measure and confirmation of prior Government approval, wherever applicable, must be formally endorsed by the Finance Head of the entity, failing which individual accountability will be fixed.” Clause (g) of the Government Letter No.48070/BPE/2010-1 dated itself would state as follows:

“(g) Extension of Government Orders relating to implementation of the revised scales of pay to the Government employees based on the recommendations of One Man Commission to the employees of State Public Sector Undertakings / Boards should not be done in a routine manner. The proposals shall have proper and full justification for adoption of the Government Order.”

4. In view of the above Government Orders, the benefit cannot be routinely extended and prior approval of the Government is to be obtained. Thus, Writ Court has committed an error.

5. Mr.M.Ravi, learned counsel for the respondent would strenuously oppose, by stating that once the Service Rules contemplates that pay and allowances will be paid to Corporation employees at the rates applicable to State Government employees from time to time, it would be sufficient to establish the entitlement of employees for equivalent scale of pay. In the present case, Linemen in Government Departments are getting the scale of pay at Rs.610-1075 from 01.06.1988 and therefore, the said scale of pay is to be fixed to employees of Arasu Rubber Corporation Limited. Thus, the Writ Court has rightly considered the issue. Learned counsel for the respondent would further contend that no prior approval is required in the present case, since Service Rules provi