The main legal point established in the judgment is that the withdrawal of employment benefits must comply with the principles of natural justice and cannot be done arbitrarily.

JUDGMENT :

B.R. Sarangi, J.

The petitioners, who are working under Orissa State Commission for Women, have filed this application to quash office order dated 24.01.2011 in Annexure-2 passed by the Commissioner-cum-Secretary to the Government of Orissa, Women & Child Development Department, by which the revised scale of pay granted to the petitioners have been withdrawn and they have been allowed to draw consolidated remuneration, i.e., minimum of the pay scale (pre-revised) attached to the post in terms of Finance Department circular dated 07.07.2008.

2. The factual matrix of the case, in brief, is that the petitioners were appointed in different posts under opposite party no.3 during the period from 1997 to 1998 and considering their educational qualification and after following due procedure they were absorbed. From the date of their initial absorption, they had been discharging their duties assigned to them. Consequentially, their services were regularized by the authority concerned. In absence of any Rules for recruitment of staff in the establishment of opposite party no.3, the petitioners were absorbed for a period of more than one decade, as it is a statutory organization and an autonomous body, but the State Government has been granting some aid for the day-to-day management of the Commission.

2.1 The High Power Committee of opposite party no.3 in its meeting held on 11.11.2003 under the chairmanship of Development Commissioner-cumAdditional Chief Secretary took a decision to absorb all the existing staff, including the petitioner, on regular basis and such minutes of the proceedings were also communicated to the Finance Department for approval of the proposal. Accordingly, the Finance Department granted necessary concurrence and approval for engagement of the employees, including the present petitioners. Consequentially, on the basis of the decision taken, all the existing staff, including the petitioners, were extended with the benefits of Orissa Revised Scale of Pay Rules, 1998 and allowed to get the pay w.e.f. 01.04.1998. They were also allowed to draw Dearness Allowance, House Rent and other allowances, as admissible to the State Government employees, pursuant to letter dated 03.02.2009. But the authority, all on a sudden, on 24.01.2011 passed an order withdrawing the benefits, which were already granted to the petitioners, vide letter dated 19.12.2008 in Annexure-2, and directed to pay consolidated remuneration, i.e., minimum of the pay scale (pre-revised) attached to the post in terms of Finance Department circular dated 07.07.2008. Hence this application.

3. Mr. B. Routray, learned Senior Counsel appearing along with Mr. J.Biswal, learned counsel for the petitioners contended that the authorities, while passing office order dated 24.01.2011 in Annexure-5 reducing the benefits, which had been granted to the petitioners, pursuant to letter dated 19.12.2008 in Annexure-2, have not complied with the minimum requirement of principles of natural justice, for which the same is liable to be quashed. It is further contended that when a right had already been accrued in favour of the petitioners, pursuant to the decision taken by the High Power Committee and approval made by the Finance Department and consequentially letter dated 19.12.2008 in Annexure-2 had been issued granting revised scale of pay to the petitioners, the subsequent order passed on 24.01.2011 in Annexure-5, without complying with the principles of natural justice, cannot sustain in the eye of law. It is further contended that the reasons assigned in the counter affidavit filed by opposite party no.2 on 02.01.2012; that the benefits of Orissa Revised Scale of Pay Rules, 1998 allowed to the employees of opposite party no.3 with effect from 01.03.2008, were subsequently withdrawn vide Government order dated 06.08.2009, when lapses were pointed out that dail