Supreme Court Allows Employer in Service Pay Scale Dispute — Revisors Not Entitled to Retrospective Benefit of Superintendent Grade II Pay Scale. Amendment Notification Dated August 5, 1980 to High Court Establishment Rules Operates Prospectively, So Revisors Are Entitled to Superintendent Grade II Scale Only From That Date, Not from January 23, 1975 When Original Rules Came Into Force.

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Case Note & Summary

The dispute arose from the pay scale entitlements of employees working as Revisors in the High Court of Punjab and Haryana. The conditions of service of High Court employees were governed by the High Court Establishment (Appointment and Conditions of Service) Rules, 1952, which provided for posts of Senior Translator and Junior Translator. Under the 1973 Rules, these posts were redesignated as Revisor and Translator respectively. The 1973 Rules were notified on January 23, 1975 and published in the Chandigarh Gazette on February 1, 1975. Under the original Schedule I of the 1973 Rules, Revisors were placed in the scale of Rs.225-500 with special pay of Rs.50 per month, while Deputy Superintendent, later known as Superintendent Grade II, was placed in a higher scale. Rules 26, 27 and 34 and Schedules I, II and III relating to salaries, allowances and pension required the approval of the President under Article 229(2) read with Article 231 of the Constitution, which approval was received in September and October 1985. Meanwhile, the pay scale of Rs.225-500 had been revised and by Notification dated August 5, 1980, Schedule I was substituted. In the substituted Schedule, the post of Senior Translator was noted as redesignated as Revisor and recommended in the pay scale of Superintendent Grade II. After receiving Presidential approval, the High Court issued Notification dated January 23, 1986 stating that Rules 26, 27 and Schedules I, I(A) and III would come into effect from September 25, 1985. Aggrieved employees, including the respondents, filed C.W.P. No.2363 of 1986, which was disposed of by judgment dated August 6, 1987. The High Court held that the 1973 Rules came into effect on January 23, 1975 and all amendments made between January 23, 1975 and September 25, 1985 were to take effect from the respective dates on which such amendments were issued. Consequently, an order dated November 17, 1987 fixed the pay of Revisors from three dates: January 23, 1975 in the old scale with special pay, January 1, 1976 in a revised scale with special pay, and August 5, 1980 in the Superintendent Grade II scale with special pay. The respondents filed C.W.P. No.2359 of 1988 contending that under the 1973 Rules, Revisors were granted the same scale and special pay as Deputy Superintendents and hence they were entitled to the Superintendent Grade II scale from January 23, 1975. A learned single Judge allowed the writ petition on January 28, 1992, holding that the respondents were entitled to the same pay scale as Deputy Superintendent with effect from January 23, 1975. The Division Bench dismissed the Letters Patent Appeal in limine on August 27, 1992. The Supreme Court, examining the original Schedule I of the 1973 Rules, found that Revisors had not been placed in the same pay scale as Superintendent Grade II; they were given the higher scale only by the Notification dated August 5, 1980. The earlier judgment in C.W.P. No.2363 of 1986 only made the original Rules effective from January 23, 1975 and subsequent amendments effective from their respective dates. Therefore, the amendment granting the Superintendent Grade II scale could not operate retrospectively. The Supreme Court allowed the appeal, set aside the orders of the learned single Judge and the Division Bench, and dismissed the writ petition filed by the respondents, with no order as to costs.

Headnote

A) Service Law - Pay Scale Revision - Prospective Effect of Amendment to Rules - High Court Establishment (Appointment and Conditions of Service) Rules, 1973, Rules 26, 27, Schedule I - The original 1973 Rules placed Revisors in the pay scale of Rs.225-500 with special pay of Rs.50 per month, whereas Deputy Superintendent (Superintendent Grade II) was in a higher scale; only by Notification dated 05.08.1980 substituting Schedule I were Revisors designated as entitled to Superintendent Grade II pay scale. The earlier judgment of the High Court in Civil Writ Petition No.2363 of 1986 held that the 1973 Rules came into force on 23.01.1975 and that all amendments made between 23.01.1975 and 25.09.1985 were to take effect from the respective dates of issue, so the amendment granting Superintendent Grade II scale could not operate retrospectively from 23.01.1975. The Supreme Court held that Revisors were entitled to the higher pay scale only from 05.08.1980 and the High Court erred in granting retrospective benefit (Paras 1-9).

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Issue of Consideration

Whether respondents who were employed as Revisors in the High Court of Punjab and Haryana and were given the pay scale of Superintendent Grade II with effect from August 5, 1980 are entitled to the said scale with effect from January 23, 1975.

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Final Decision

Appeal allowed; order dated August 27, 1992 in Letters Patent Appeal No.615 of 1992 and judgment dated January 28, 1992 in Civil Writ Petition No.2359 of 1988 set aside; writ petition filed by respondents dismissed; no order as to costs.

Law Points

  • Amendment to service rules operates prospectively from date of notification
  • revised pay scale cannot be granted retrospectively unless rules expressly provide
  • High Court service rules relating to salaries require Presidential approval under Article 229(2) of the Constitution
  • earlier judgment directing original rules to come into force from a date does not give subsequent amendments retrospective effect
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Case Details

1997 LawText (SC) (01) 90

1997-01-08

S.C. Agrawal, Faizan Uddin

Punjab and Haryana High Court, Chandigarh through its Registrar

Sunder Sham Kapoor & Ors.

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Nature of Litigation

Service law dispute regarding pay scale entitlement of High Court employees (Revisors).

Remedy Sought

Respondents sought pay scale of Superintendent Grade II with effect from January 23, 1975 instead of August 5, 1980.

Filing Reason

They claimed that under the 1973 Rules as originally notified, Revisors were entitled to the same scale as Deputy Superintendent (Superintendent Grade II) from the date the Rules came into force, namely January 23, 1975; the High Court had initially fixed pay only from August 5, 1980.

Previous Decisions

High Court in C.W.P. No.2363 of 1986 by judgment dated August 6, 1987 quashed Notification dated January 23, 1986 and held that the 1973 Rules came into force on January 23, 1975, with amendments taking effect from respective dates. Order dated November 17, 1987 fixed pay of Revisors effective 23.1.1975, 1.1.1976, and 5.8.1980. Respondents filed C.W.P. No.2359 of 1988; learned single Judge allowed it on January 28, 1992 holding Revisors entitled to same scale as Deputy Superintendent from January 23, 1975. Division Bench dismissed L.P.A. No.615 of 1992 in limine on August 27, 1992.

Issues

Whether Revisors are entitled to pay scale of Superintendent Grade II with effect from January 23, 1975 or only from August 5, 1980.

Submissions/Arguments

Appellant argued that the amendment notified on August 5, 1980 applied prospectively and the earlier High Court judgment in Civil Writ Petition No.2363 of 1986 held that amendments took effect from their respective dates, so respondents were not entitled to retrospective benefit. Respondents contended that under the 1973 Rules, Revisors were granted the same scale and special pay as Deputy Superintendents, and since the 1973 Rules came into force on January 23, 1975, they were entitled to that scale from that date.

Ratio Decidendi

An amendment to service rules, particularly a revision in pay scale brought by a subsequent notification, operates prospectively from the date of such notification, not retrospectively from the date the original rules came into force. The earlier judgment only determined that the original 1973 Rules came into force on January 23, 1975 and that amendments made thereafter take effect from their respective dates; it did not give the amended pay scale retrospective effect. Therefore, Revisors are entitled to Superintendent Grade II scale only from August 5, 1980 when Schedule I was substituted.

Judgment Excerpts

The short question that falls for consideration in this appeal is whether the respondents who were employed as Revisors in the High Court of Punjab and Haryana and were given the pay scale of Superintendent Grade II with effect from August 5, 1980 are entitled to the said scale with effect from January 23 1975. This view is, however, not borne out by Schedule I of the 1973 Rules as originally issued vide Notification dated January 23, 1975. Since the amendment in the Schedule I to the 1973 Rules was made by Notification dated August 5, 1980, it can only come into force with effect from the date of issue of the Notification dated August 5, 1980 and not with effect from January 23, 1975 as held by the learned single Judge in the impugned judgment. The appeal is, therefore, allowed... and the Writ Petition filed by the respondents is dismissed.

Procedural History

High Court Establishment Rules 1973 notified on 23.01.1975; President approval received 25.09.1985 and 30.10.1985; Schedule I substituted by Notification dated 05.08.1980; Notification dated 23.01.1986 issued bringing Rules 26, 27 and Schedules into effect from 25.09.1985; employees including respondents filed C.W.P. No.2363 of 1986; High Court judgment dated 06.08.1987 quashed Notification dated 23.01.1986 and held 1973 Rules effective from 23.01.1975 with amendments effective from respective dates; order dated 17.11.1987 fixed pay of Revisors; respondents filed C.W.P. No.2359 of 1988; learned single Judge allowed on 28.01.1992; Division Bench dismissed L.P.A. No.615 of 1992 in limine on 27.08.1992; appeal to Supreme Court, judgment 08.01.1997.

Acts & Sections

  • Constitution of India, 1950: Article 229(2), Article 231
  • High Court Establishment (Appointment and Conditions of Service) Rules, 1973: Rules 26, 27, 34, Schedule I, Schedule I(A), Schedule III
  • High Court Establishment (Appointment and Conditions of Service) Rules, 1952:
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