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2026 Supreme(Online)(CAT) 5635

CENTRAL ADMINISTRATIVE TRIBUNAL
Akhil Kumar Srivastava, Judicial Member, Mallika Arya, Administrative Member
Giduturi Nagendra Rao – Appellant
Versus
Union of India – Respondent
Original Application No. 308 of 2026



Advocates:
For the Appellants/Petitioners: Amardeep Gupta
For the Respondents: Himanshu Shrivastava

The judgment in M. Subramaniam vs. Union of India, regarding non-functional pay upgradation, is a judgment in rem, entitling all similarly situated employees to the same benefits without requiring individual litigation, in accordance with the principles of service jurisprudence and equality.

Headnote:(A) Administrative Tribunals Act, 1985 - Section 19 - Grant of Non-functional Grade Pay of Rs. 5400/- - Applicants sought non-functional upgradation to Grade Pay of Rs. 5400/- after completing four years of regular service in the Grade Pay of Rs. 4800/- - Respondents denied the benefit, citing that the judgment in M. Subramaniam vs. Union of India is a judgment in personam - Tribunal held the judgment in M. Subramaniam is a judgment in rem and must be extended to all similarly situated employees - Principle of equality in service jurisprudence requires that all persons similarly situated be treated equally, regardless of whether they individually approached the court. (Paras 3, 6, 8, 10, 11)

Facts of the case:
The applicants, working as employees in the respondents’ department, were granted second financial upgradation in the Grade Pay of Rs. 4800/-. They sought the benefit of non-functional upgradation to the Grade Pay of Rs. 5400/- after completing four years of regular service, relying on the judgment of the Madras High Court in M. Subramaniam vs. Union of India, which had been affirmed by the Supreme Court and followed by various Tribunals. The respondents denied this, arguing the judgment was in personam.

Findings of Court:
The Court found that the issue is no longer res integra and that several Benches of the Tribunal had already held that the judgment requires compliance in rem. The denial of benefits to similarly situated employees contradicts the National Litigation Policy and the principle of equality under Article 14.

Issues: Whether the judgment of the Madras High Court in M. Subramaniam vs. Union of India is a judgment in rem or in personam, and whether the applicants are entitled to the same benefits awarded to the petitioner in that case.

Ratio Decidendi: The court reasoned that when a legal principle is settled by the Supreme Court or High Courts, similarly situated employees should receive the same benefit without each individual needing to file separate litigation, citing State of Karnataka vs. C. Lalitha.

Result: Original Application allowed with directed timelines for compliance.

Table of Content
1. applicants seek relief based on established judicial precedents regarding grade pay. (Para 1 , 2 , 3 , 4)
2. prior tribunal decisions affirm that the precedent is applicable in rem. (Para 5 , 6 , 7)
3. government is expected to be a responsible litigant and treat equals equally. (Para 8 , 9 , 10 , 11 , 12)
4. the tribunal mandates the extension of benefits to the applicants. (Para 13 , 14 , 15)

O R D E R

By Akhil Kumar Srivastava, JM.-

By means of the instant original application filed under section 19 of Administrative Tribunals Act 1985, the applicants have prayed for a direction to the respondents to extend the benefit of G.P. of Rs.5400/- on non-functional basis with effect from the date they completed four years regular service in the grade pay of Rs. 4800/- in pursuance of the judgment passed by the Hon’ble Madras High Court affirmed by Hon’ble Supreme Court and followed by this Tribunal in bunch of Original Applications i.e. O.A. No. 24/2015 and other connected matters. Prayer has also been made to grant the benefit of Grade Pay of Rs. 5400/- to the retired officers with effect from the date they completed four years of regular service in the grade pay of Rs. 4800 (from the date of entitlement) by paying them arrears of pay and revising their retiral dues and PPO accordingly.

2. The applicants who were working in the respondents’ department on the different posts, were granted the benefit of second financial upgradation in the Grade Pay of Rs.4800/-. The Government of India issued a Resolution dated 29.08.2008 accepting the recommendation of the Pay Commission inter alia specifying that the Group-B officers of Department of Post, Revenue etc. will be granted Grade Pay of Rs.5,400/- in PB-2 on non-functional basis after rendering four years regular service in the Grade Pay of Rs.4,800/-.

3. The applicants submit that the issue regarding grant of Grade Pay of Rs.5400/- after completion of four years service in the Grade Pay of Rs.4800/-, was agitated by one similarly placed employee M. Subramaniam Vs. U.O.I & Ors before the Hon’ble High Court of Madras in W.P. No.13225/2010 and the Hon’ble High Court has clarified as to how the four years period is to be counted for the purpose of granting non-functional upgradation to Group-B Officer. The same principle has also been followed by the various Benches of this Tribunal. Learned counsel for the applicants also cited an order dated 13.09.2018 passed by the Jabalpur Bench of this Tribunal in OA No. 200/24/2015 – Salman Imteyaz Hussaini & Others Vs. U.O.I & Ors with connected OAs (Annexure A-4) and submits that since the applicants are also similarly placed employees, they have legitimate right to get Grade Pay of Rs.5400/- and the applicants are feeling aggrieved with the action of the respondents in denial of the benefit of up-gradation in the grade pay of 5,400/- have filed the instant original application.

4. In their reply, the respondents have stated that as per Central Board of Excise & Customs clarification dated 11.02.2009, non-functional upgradation to the grade pay of Rs. 5400/- in Pay Band-2 can be given on completion of 4 years of regular service in the grade pay of Rs. 4800/- in PB-2 (pre-revised scale of Rs. 7500-12000) after regular promotion and not on account of financial upgradation due to ACP/MACP. It has also been stated by the respondents that the judgment passed in M. Subramaniam (supra) is a judgment in personam and the Department of Expenditure has clarified that the same cannot be implemented in case of similarly placed officers.

5. We have heard Shri Amardeep Gupta, learned counsel for the applicants and Shri Himanshu Shrivastava, learned counsel for the respondents. We have carefully gone through the entire record, and considered the rival contentions.

6. It is noted that the issue involved in the present original applications have already been settled in number of cases. This Tribunal in the order dated 23.11.2022 passed in OA No. 200/

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