The existing basic pay as on 01.01.2006 is the pay drawn in the prescribed existing scale of pay and that it can only be interpreted as the pay applicable to the post payable to the Government servants as on 01.01.2006, because the pay in the old scale had ceased to exist on 01.01.2006 and a new pay scheme systematically different from the old scale of pay had come into force on that day.

Headnote:
PAY FIXATION - REVISED PAY STRUCTURE - [KEYWORD] - The existing basic pay as on 01.01.2006 is the pay drawn in the prescribed existing scale of pay and that it can only be interpreted as the pay applicable to the post payable to the Government servants as on 01.01.2006, because the pay in the old scale had ceased to exist on 01.01.2006 and a new pay scheme systematically different from the old scale of pay had come into force on that day.
Fact of the Case:

The respondents were working in different grades of the Ministerial cadre in the Indian Navy. The Assistants were drawing a pay scale of Rs.5000-8000 and the Office Superintendents were drawing a pay scale of Rs.5000-9000 under the 5th Central Pay Commission (CPC). On implementation of the Assured Career Progression Scheme (ACP Scheme), the LDCs and the UDCs were granted their second and first financial upgradation and were placed in the scale of pay of Assistants at Rs.5000-8000 (pre-revised) when they were granted the second and the first financial upgradations respectively. However, after the 6th central Pay Commission the two posts carrying the pay of Rs.5000-8000 and Rs.5500-9000 were clubbed together and placed in the revised pay scale of Rs.6500-10500 by way of merger in Pay Band 2 (PB2) with grade pay of Rs.4200/-.
Finding of the Court:

The Tribunal by the order impugned found relying on Rule 7 of the CDS (RP) Rules, 2008 and also the definition of 'existing basic pay' and 'existing scale' that a conjoint reading of the above will reveal that the existing basic pay as on 01.01.2006 is the pay drawn in the prescribed existing scale of pay and that it can only be interpreted as the pay applicable to the post payable to Government servants as on 01.01.2006, because the pay in the old scale had ceased to exist on 01.01.2006 and a new pay scheme systematically different from the old scale of pay had come into force on that day.
Ratio Decidendi: The existing basic pay as on 01.01.2006 is the pay drawn in the prescribed existing scale of pay and that it can only be interpreted as the pay applicable to the post payable to the Government servants as on 01.01.2006, because the pay in the old scale had ceased to exist on 01.01.2006 and a new pay scheme systematically different from the old scale of pay had come into force on that day.
Final Decision: Accordingly, we dismiss these original petitions.

ORDER

Mohammed Nias.C.P., J.

The Union of India and its officials have filed these original petitions aggrieved by the orders passed by the Central Administrative Tribunal (CAT), Ernakulam Bench allowing the applications filed by the respondents herein that quashed Annexures A1 and A2 orders and held that the respondents are entitled to get their initial pay fixed treating Rs.6500/- as existing basic pay as on 01.01.2006 with all consequential benefits..

2. The relevant facts leading to the original petitions are as follows:-

The respondents were working in different grades of the Ministerial cadre in the Indian Navy. The Assistants were drawing a pay scale of Rs.5000-8000 and the Office Superintendents were drawing a pay scale of Rs.5000-9000 under the 5th Central Pay Commission (CPC). On implementation of the Assured Career Progression Scheme (ACP Scheme), the LDCs and the UDCs were granted their second and first financial upgradation and were placed in the scale of pay of Assistants at Rs.5000-8000 (pre-revised) when they were granted the second and the first financial upgradations respectively. However, after the 6th central Pay Commission the two posts carrying the pay of Rs.5000-8000 and Rs.5500-9000 were clubbed together and placed in the revised pay scale of Rs.6500-10500 by way of merger in Pay Band 2 (PB2) with grade pay of Rs.4200/-. Annexure A3 circular dated 5.4.2010 was issued by the Ministry of Defence making it clear that the said order will take effect from 01.01.2006.

3. The applicants grievance was about the manner in which the initial pay was fixed in the revised pay structure in accordance with the the Civilians in Defence Services (Revised Pay) Rules, 2008 (hereinafter referred to as 'the Rules 2008'). They contended that their pay has been wrongly fixed by the petitioners in the revised pay scales taking the pay drawn before the implementation of the merger of posts as their basic pay as on 01.01.2006. Their essential contention is that the pre-revised scale is not the scale before the merger but it is the scale after the merger but before the revision of the scales by the 6th CPC, and therefore, the pre-revised scale specified in Annexure A8 OM can only be the pay scale after the merger which came into force with effect from 01.01.2006. Thus, the applicants prayed for a declaration that the fixation of initial pay in the revised pay structure as per Rules 7 of the CCS (RP) Rules, 2008 should be based on the salary actually due as on 01.01.2006 and to fix their salary in the revised pay scale of Rs.6500-10500 as on 01.01.2006 with all consequential benefits.

4. The petitioners contended before the Tribunal that Annexure A1 and A2 communications reflected the correct position and the procedure to be a dopted in all cases wherein pay scale have been explained with an illustration sample case. It was their contention before the Tribunal that existing basic pay means the pay drawn in the prescribed existing scale of pay and since the applicants have never drawn pay in the scale of Rs.6500-10500, the contention of the applicants could not have been accepted.

5. The Tribunal by the order impugned found relying on Rule

7 of the CDS (RP) Rules, 2008 and also the definition of 'existing basic pay' and 'existing scale' that a conjoint reading of the above will reveal that the existing basic pay as on 01.01.2006 is the pay drawn in the prescribed existing scale of pay and that it can only be interpreted as the pay applicable to the post payable to Government servants as on 01.01.2006, because the pay in the old scale had ceased to exist on 01.01.2006 and a new pay scheme systematically different from the old scale of pay had come into force on that day. Accordingly, the original applications were allowed and Annexures A1 and A2 communications in OP(CAT) 179 of 2018 were set aside and it was declared that the respondents should fix the initial pay of the applicants including all members of the Applicant No.1 Association i

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