Case Note & Summary
This case involved an appeal by the Employees State Insurance Corporation against a decision of the Central Administrative Tribunal regarding pay fixation for employees in the cadre of Upper Division Clerks (UDCs). The dispute arose when respondent No.1, who was promoted as Head Clerk, sought to have his pay stepped up to match that of respondent No.2, who had also been promoted but had worked in a different capacity as UDC Incharge. The Tribunal had directed the Corporation to step up respondent No.1's pay based on the pay fixation of respondent No.2, which was granted under a memorandum that revised the pay scale for UDC Incharge. The court examined the application of Fundamental Rule 22-C, which allows for stepping up pay to remove anomalies when a senior employee earns less than a junior upon promotion. The court found that since respondent No.1 had never held the post of UDC Incharge and had opted for UDC Cashier, the scales of pay for their respective posts were not identical. Consequently, the conditions for stepping up pay were not satisfied. The court referenced a previous case to reinforce that employees who declined to take certain posts for personal benefits could not invoke F.R. 22-C for pay adjustments. Ultimately, the court allowed the appeal, set aside the Tribunal's order, and made no order as to costs.
Headnote
A) Administrative Law - Pay Fixation - Stepping Up of Pay - Fundamental Rule 22-C, 1966 - The court held that a senior employee who opted for a different post than his junior is not entitled to have his pay stepped up based on the junior's pay fixation. The scales of pay for the posts held by the senior and junior were not identical, thus the conditions for stepping up under F.R. 22-C were not met. (Paras 1-3).
Issue of Consideration
Whether the pay of a senior employee can be stepped up to match that of a junior employee under Fundamental Rule 22-C.
Final Decision
The Supreme Court allowed the appeal, set aside the Tribunal's order, and made no order as to costs.
Law Points
- Pay fixation
- stepping up of pay
- Fundamental Rule 22-C
- promotion
- cadre
- anomaly removal


