Case Note & Summary
The litigation arose from a writ petition filed before the Punjab and Haryana High Court by an Indian Administrative Service officer allotted to the Haryana cadre. The officer had obtained a Ph.D. degree in 1979 while in service and subsequently sought four advance increments from the State of Haryana on the basis of a Government order dated October 23, 1978, which granted incentives of advance increments to employees of the State of Haryana in Class II and III. The State had earlier rejected his request for such relief. The officer then approached the High Court by way of CWP No. 5173 of 1981, seeking a direction to the State to grant him the advance increments. The Division Bench of the High Court, following a judgment of a learned single judge of that court, allowed the writ petition and directed the State to grant the advance increments. The High Court reasoned that Rule 2(b) of the All India Services (Conditions of Service Residuary Matters) Rules, 1960 did not contain any contrary rule prohibiting the grant of such incentives, and therefore the Haryana Government order granting incentives to Class II and III employees could be attracted to the respondent. Aggrieved, the State of Haryana filed an appeal by special leave before the Supreme Court of India. The Supreme Court granted leave and issued notice to the respondent. The notice was returned with an endorsement that the respondent had retired from service, and the respondent did not enter appearance. The core legal issue before the Supreme Court was whether an Indian Administrative Service officer allotted to a State cadre was entitled to advance increments on the basis of an incentive granted to Class II and III officers, and possibly Class I employees, of the State service, and whether such incentives were applicable to Indian Administrative Service officers governed by the All India Services (Conditions of Service Residuary Matters) Rules, 1960, particularly Rule 2(b). The Court examined Rule 2(b), which provided that the Central Government may, after consultation with the Governments of the State concerned, make regulations to regulate matters relating to conditions of service of persons appointed to the All India Service for which there was no provision in the rules made or deemed to have been made under the All India Services Act, 1951. Until such regulations were made, such matters were to be regulated, in the case of persons serving in connection with the affairs of a State, by the rules, regulations and orders applicable to officers of that State, with such exceptions and modifications as the Central Government may, after consultation with the State Government concerned, by order in writing make. The Court held that a reading of Rule 2(b) clearly indicated that the Central Government, after consultation with the State Government concerned, could make regulations for residuary matters, and until such regulations were made, State rules could apply to All India Service officers only with the concurrence of the Central Government and an express order passed in that behalf. In the absence of any concurrence by the Central Government and an express written order permitting the State Government to grant incentives to personnel in the All India Service cadre, the incentives provided to State Government employees governed by State Services were per se not applicable. Consequently, the respondent, being an Indian Administrative Service officer, was not eligible for the incentive of four advance increments for securing a Ph.D. degree. The Supreme Court allowed the appeal, set aside the judgment of the High Court, and reversed the judgment of the learned single judge that had been followed. No order as to costs was made.
Headnote
A) Service Law - All India Services Conditions of Service - Applicability of State Incentives to IAS Officers - All India Services (Conditions of Service Residuary Matters) Rules, 1960, Rule 2(b) - The respondent, an IAS officer allotted to the Haryana cadre, sought four advance increments for obtaining a Ph.D. degree based on a Haryana Government order granting such incentives to Class II and III State employees. The High Court directed grant holding that Rule 2(b) did not prohibit the incentive. The Supreme Court held that Rule 2(b) permits State rules to apply to All India Service officers only with Central Government concurrence and an express written order; without such concurrence, State service incentives per se are not applicable. Held: IAS officer not eligible for advance increments; appeal allowed and High Court judgment set aside.
Issue of Consideration
Whether an IAS Officer allotted to a State cadre is entitled to advance increments on the basis of an incentive granted to Class II and III officers and even Class I employees of the State service, and whether the same is applicable to IAS Officers governed by the All India Services (Conditions of Service Residuary Matters) Rules, 1960, in particular Rule 2(b)
Final Decision
Appeal allowed. Judgment of Punjab and Haryana High Court set aside; judgment of learned single judge reversed. Respondent IAS officer not eligible for incentive of four advance increments for Ph.D. No costs.
Law Points
- Rule 2(b) of All India Services (Conditions of Service Residuary Matters) Rules
- 1960 requires Central Government concurrence and express written order before State service rules can apply to All India Service officers
- State service incentives per se not applicable to IAS officers without such concurrence


