SUPREME COURT OF INDIA
J.S.Verma : K.Venkataswami
M.R.Gupta
Versus
Union Of India
Case No. : .
Date of Decision : 8/21/95
Advocates Appeared: Lehri K. : Narasimhan P. : Sharma A.K. : Sikri A.K. : Sikri Madhu
Administrative tribunals Act, 1985 - Contrary to law - Pay is contrary to law – Employment and service – Claim of compensation - Representation of appellant to this effect was rejected before coming into force of Administrative tribunals Act, 1985 - Appellant then filed an application before tribunal praying inter alia for proper fixation of his initial pay with effect and certain consequential benefits - Application was contested by respondents on ground that it was time barred since cause of action had arisen at time of initial fixation of his pay in or latest on rejection of his representation before coming into force of Administrative tribunals Act, 1985 - Subsequent representations made by the appellant for proper fixation of his pay were alleged to be immaterial for this purpose – Held, Tribunal misdirected itself when it treated the appellants claim as "one time action" meaning thereby that it was not a continuing wrong based on a recurring cause of action - Claim to be paid the correct salary computed on the basis of proper pay fixation is a right which subsists during the entire tenure of service and can be exercised at the time of each payment of the salary when employee is entitled to salary computed correctly in accordance with rules. This right of a government servant to be paid the correct salary throughout his tenure according to computation made in accordance with rules, is akin to the right of redemption which is an incident of a subsisting mortgage and subsists so long as mortgage itself subsists, unless equity of redemption is extinguished - It is settled that right of redemption is of this kind - Learned counsel for the respondents placed strong reliance on the decision of this court in of M.P - That decision has no application in the present case. That was a case of termination of service and therefore a case of one time action, unlike the claim for payment of correct salary according to the rules throughout the service giving rise to a fresh cause of action each time the salary was incorrectly computed and paid - No further consideration of that decision is required to indicate its inapplicability in the present case - such as, promotion etc. would also be subject to etc. to disentitle him to those reliefs - Pay fixation can be made only on the basis of the situation existing without taking into account any other consequential relief which may be barred by his and bar of limitation. It is to this limited extent of proper pay fixation the application cannot be treated as time barred since it is based on a recurring cause of action – Appeal allowed
Judgment
J.S.VERMA, J.
(1) LEAVE granted.
(2) THE only question for decision is: Whether the impugned judgment of the tribunal dismissing as time barred the application made by the appellant for proper fixation of his pay is contrary to law? Only a few facts are material for deciding this point.
(3) THE appellant joined the service of the State of Punjab as Demonstrator in the government Polytechnic in 1967. Thereafter, he joined service in the Railways in 1978. The appellant claimed that the fixation of his pay on his joining service in the Railways was incorrect and that he was entitled to fixation of his pay after adding one increment to the pay which he would have drawn on 1/8/1978 in accordance with Rule No. 2018 (N.R.S.N. 6447 equivalent to Fundamental Rule 22-C. The representation of the appellant to this effect was rejected before coming into force of the Administrative tribunals Act, 1985. The appellant then filed an application on 4/9/1989 before the tribunal praying inter alia for proper fixation of his initial pay with effect from 1/8/1978 and certain consequential benefits. The application was contested by the respondents on the ground that it was time barred since the cause of action had arisen at the time of the initial fixation of his pay in 1978 or latest on rejection of his representation before coming into force of the Administrative tribunals Act, 1985. The subsequent representations made by the appellant for proper fixation of his pay were alleged to be immaterial for this purpose.
(4) THE tribunal has upheld the respondents objection based on the ground of limitation. It has been held that the appellant had been expressly told by the order dated 12/8/1985 and by another letter dated 7/3/1987 that his pay had been correctly fixed so that he should have assailed that order at 9 that time "which was one time action". The tribunal held that the raising of this matter after lapse of II years since the initial pay fixation in 1978 was hopelessly barred by time. Accordingly, the application was dismissed as time barred without going into the merits of the appellants claim for proper pay fixation.
(5) HAVING heard both sides, we are satisfied that the tribunal has missed the real point and overlooked the crux of the matter. The appellants grievance that his pay fixation was not in accordance with the rules, was the assertion of a continuing wrong against him which gave rise to a recurring cause of action each time he was paid a salary which was not computed in accordance with the rules. So long as the appellant is in service, a fresh cause of action arises every month when he is paid his monthly salary on the basis of a wrong computation made contrary to rules. It is no doubt true that if the appellants claim is found correct on merits, he would be entitled to be paid according to the properly fixed pay scale in the future and the question of limitation would arise for recovery of the arrears for the past period. In other words, the appellants claim, if any, for recovery of arrears calculated on the basis of difference in the pay which has become time barred would not be recoverable, but he would be entitled to proper fixation of his pay in accordance with rules and to cessation of a continuing wrong if on merits his claim is justified. Similarly, any other consequential relief claimed by him, such as, promotion etc. would also be subject to the defence of laches etc. to disentitle him to those reliefs. The pay fixation can be made only on the basis of the situation existing on 1/8/1978 without taking into account any other consequential relief which may be barred by his laches and the bar of limitation. It is to this limited extent of proper pay fixation the application cannot be treated as time barred since it is based on a recurring cause of action.
(6) THE tribunal misdirected itself when it treated the appellants claim as "one time action" meaning there
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