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2026 Supreme(Online)(Kar) 19758

THE HIGH COURT OF KARNATAKA
S.R.Krishna Kumar, J
Karnataka State Co-operative Marketing Federation – Appellant
Versus
Nagayya N. Hiremath – Respondent
WP No. 27496 of 2016



Advocates:
For the Appellants/Petitioners: P. Anand
For the Respondents: G. Ramesh Naik, T. Dadakalendar

An employer cannot retrospectively apply a later administrative order to downgrade the specific cadre and pay scale granted to an employee through a formal, prior reinstatement order, as the employer is bound by its own initial commitment.

Headnote:(A) Constitution of India - Articles 226 and 227 - Scope of interference - High Court will not interfere with findings of fact recorded by a Tribunal unless they are perverse or capricious or have occasioned a failure of justice. (Para 6)

(B) Service Law - Reinstatement - Pay scale and seniority - Where an organization issued a specific order of reinstatement designating an employee as 'Internal Auditor' with a defined pay scale, it cannot later downgrade that employee based on a subsequent administrative order that lacks retrospective effect. (Paras 4, 15)

Facts of the case:
The respondent challenged his classification as a 'Senior Assistant' rather than an 'Internal Auditor' following his reinstatement. The Co-operative Federation had reinstated him as an Internal Auditor via a specific order in 1995. However, it later attempted to downgrade his rank and pay scale based on an administrative order passed three years later by the Registrar, which purported to equate his role to a lower cadre. The Appellate Tribunal ruled in favor of the employee, leading to this petition by the Federation.

Findings of Court:
The High Court upheld the Tribunal's finding that the Federation was bound by its own 1995 reinstatement order. The subsequent administrative order could not be applied retrospectively to alter the position and pay scale of an employee already reinstated at a higher rank.

Issues: Whether the Tribunal was correct in concluding that the Federation could not retrospectively apply an administrative order to downgrade the respondent's previously established rank and pay scale upon reinstatement.

Ratio Decidendi: An employer is estopped from ignoring its own specific appointment or reinstatement order by relying on a subsequent, non-retrospective administrative circular or order to the detriment of the employee's vested service conditions.

Result: Petition dismissed.

Table of Content
1. overview of the background regarding reinstatement and seniority disputes. (Para 1 , 2 , 3)
2. an employer cannot unilaterally downgrade an employee's rank by applying subsequent administrative orders retrospectively. (Para 4)
3. high court's limited scope of interference in tribunal findings of fact. (Para 5 , 6 , 7)

THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED AND ORDER DATED 19.05.2015 PASSED BY THE KARNATAKA APPELLATE TRIBUNAL AT BANGALORE IN APPEAL NO.102/2013 AND 208/2011 UNDER ANNEXURE-A IS NOT SUSTAINABLE AND ORDER TO RESTORE THE ORDERS IMPUGNED TO THE APPEALS AND ETC.,

THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER

1. In this petition, petitioner seeks quashing of the impugned order at Annexure-A dated 19.05.2015 passed in Appeal Nos.102/2013 c/w 208/2011 by the Karnataka Appellate Tribunal, Bangalore (for short ‘the KAT’), whereby the said appeals filed by the 2nd respondent – appellant was allowed by the KAT.

2. Heard learned counsel for the petitioner and learned AGA for 1st respondent as well as learned counsel for 2nd respondent and perused the material on record.

3. The material on record discloses that the 2nd respondent was working as a Senior Assistant in the petitioner – Federation, when disputes arose between them which culminated in the previous round of litigation by an order dated 18.11.2004 passed in W.P.No.22202/1999 c/w W.P.No.25292/2002 filed by the 2nd respondent herein (writ petitioner in the said writ petitions), hereby this Court allowed W.P.No.22202/1999 and remitted the matter back to the Registrar for reconsideration afresh and also disposed of W.P.No.25292/2002 by reserving liberty in favour of the 2nd respondent to challenge the order, on the basis of which, the seniority list was prepared by the petitioner herein. In pursuance of the said order, the Additional Registrar of Co-operative Societies (ARCS) passed orders dated 31.11.2011 and 28.01.2013 rejecting the claim of the 2nd respondent, who filed appeals in Appeal Nos.208/2011 and 102/2013 respectively before the KAT. The said appeals were allowed by the KAT vide impugned common order dated 19.05.2015, whereby the KAT set aside the aforesaid orders and directed the petitioner – Federation to implement its order dated 05.07.1995 and include the 2nd respondent in the seniority of the internal auditor of the Federation and fix his pay scale in the cadre of Internal auditor of the Federation and granting all service financial benefits w.e.f. 01.04.1999 as stated in its aforesaid order dated 05.07.1995. Aggrieved by the impugned order passed by the KAT, petitioner – Federation is before this Court by way of the present petition.

4. A perusal of the material on record will indicate that KAT has correctly and properly considered and appreciated the rival contentions and has recorded findings of fact by holding that consequent to the reinstatement of the 2nd respondent as per the orders of the Industrial Tribunal, the petitioner – Federation had reinstated him as an Internal Auditor vide order dated 05.07.1995, wherein it is clearly stated that the 2nd respondent was reinstated the petitioner as an Internal Auditor in the pay scale of Rs.1280-30-1400-40-1800-50-2300-75-2375 and having issued the said order, the petitioner – Federation are estopped from contending that the order of the ARCS dated 31.01.1995 which was issued subsequent to the reinstatement order dated 05.07.1995 was applicable, since the 2nd respondent had already been reinstated prior to the aforesaid order dated 13.01.1998 passed by the ARCS which was not retrospective and would not affect the pay scale or seniority of the 2nd respondent who had been reinstated on 05.07.1995 much prior to the order dated 13.01.1998 which could not have been made the basis to reject the claim of the 2nd respondent and dismiss the disp

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