Case Note & Summary
The dispute arose between the Comptroller & Auditor General of India and Farid Sattar regarding the fixation of pay following Sattar's unilateral transfer from the post of Senior Accountant to Accountant. Sattar joined as an Auditor in 1982 and was promoted to Senior Accountant in 1987. In 1990, he sought a mutual transfer, which was not permissible, leading him to apply for a unilateral transfer in 1992, accepting a lower pay scale. His pay was erroneously fixed at a higher rate, which was later corrected by a memorandum directing recovery of excess payment. Sattar challenged this decision before the Central Administrative Tribunal, which ruled in his favor, stating that his pay should be protected. The appellants contended that the tribunal erred in applying the Fundamental Rules, arguing that the terms of the unilateral transfer required Sattar to accept a lower pay without protection. The court analyzed the relevant Fundamental Rules and concluded that since the transfer was unilateral and involved a technical resignation, the pay could not be protected. The court found that the tribunal's decision was not sustainable and allowed the appeal, setting aside the tribunal's order without costs.
Headnote
A) Administrative Law - Pay Fixation - Protection of Pay on Transfer - Fundamental Rules, 1922, Rule 22(1)(a)(2), 22(1)(a)(3) - The court held that the pay of an employee transferred on his own request to a lower post is not protected under the Fundamental Rules, as the transfer was unilateral and involved a technical resignation. The terms of the transfer clearly stated that the employee would rank junior and his pay would be fixed according to the lower post's scale, thus justifying the re-fixation of pay. Held that the tribunal's order was unsustainable (Paras 1-4).
Issue of Consideration
Whether the pay of the respondent should be protected upon his unilateral transfer to a lower post.
Final Decision
The Supreme Court allowed the appeal, setting aside the tribunal's order and confirming the re-fixation of the respondent's pay as per the terms of the unilateral transfer.
Law Points
- Fundamental Rules
- pay fixation
- unilateral transfer
- reversion
- technical resignation



