Case Note & Summary
The dispute concerned the absorption of Physical Training Instructors from Central Government service to Haryana State Service under the N.D.S.I. Scheme. The respondents were originally appointed as Physical Training Instructors by the Central Government and were later appointed by the State Government of Haryana on October 14, 1976, pursuant to a decision to absorb N.D.S. Instructors in State Service with effect from July 1, 1976. The appointment order contained specific conditions. Condition No.9 stated that from the date of absorption, he/she would be entitled to all allowances admissible to other State Government employees of that cadre. Condition No.10 provided that the pay and allowance received under the Central Government at the time of absorption would be protected, specifically Dearness Allowance, Dearness Pay, Interim Relief, and Additional Dearness Allowances. Paragraph 15 of the order stated that the total expenditure on pay and allowances of N.D.S. Instructors would continue to be reimbursed by the Government of India to the State Government until they remained in the cadre of P.E.T. in which they were absorbed. The High Court of Punjab and Haryana had passed an order dated August 4, 1994 in C.W.P. No. 2558 of 1991, which was challenged by the State of Haryana before the Supreme Court by special leave. The core legal issue was the interpretation of the absorption conditions regarding pay parity and protection of allowances. The Supreme Court examined the appointment order and held that the respondents, who were absorbed as P.E.Ts. or D.P.Es. with effect from July 1, 1976, were entitled to pay on par with State Government employees, while allowances such as Dearness Allowance and Interim Relief would be as admissible to Central Government employees on the date of absorption. The Court further held that any claims laid by the respondents in respect of dearness allowance etc., as enumerated in clause 10 of the appointment order, must be given to the respondents as admissible on the date of absorption, i.e., October 1976. The State Government in turn would be entitled to reimbursement from the Central Government. The appeal was disposed of accordingly, with the appeal against respondent Nos. 28, 84, and 90 standing abated as they were reported dead. No costs were awarded.
Headnote
A) Service Law - Absorption and Pay Protection - Entitlement to Dearness Allowance and Other Allowances on Absorption - Not mentioned - The respondents, formerly Central Government Physical Training Instructors, were absorbed into Haryana State Service under the N.D.S.I. Scheme with effect from July 1, 1976; their appointment order conditions 9, 10 and paragraph 15 provided that pay would be on par with State Government employees while allowances like Dearness Allowance, Dearness Pay, Interim Relief and Additional Dearness Allowances would be protected as admissible to Central Government employees on the date of absorption, and the State would be reimbursed by the Central Government until they remained in the P.E.T. cadre - The Supreme Court held that claims relating to such allowances must be granted as admissible on the date of absorption, i.e., October 1976, and the State Government is entitled to reimbursement from the Central Government (Paras Not mentioned).
Issue of Consideration
Whether respondents, absorbed from Central Government service into Haryana State Service as Physical Training Instructors, are entitled to pay and allowances as per Central Government rates or State Government rates, and the extent of reimbursement to State by Centre
Final Decision
Appeal disposed of; claims of respondents in respect of dearness allowance etc. as enumerated in clause 10 of the order of appointment to be given to respondents as admissible on the date of absorption (October 1976); State Government entitled to reimbursement from Central Government; appeal against respondent Nos. 28, 84, 90 abated as they are dead; no costs.
Law Points
- Absorbed Central Government employees are entitled to pay parity with State Government employees
- Allowances like Dearness Allowance
- Dearness Pay
- Interim Relief
- Additional Dearness Allowances are protected as admissible to Central Government employees on the date of absorption
- Central Government must reimburse State Government for expenditure on absorbed N.D.S.I. instructors until they remain in P.E.T. cadre
- Claims under clause 10 of appointment order to be granted as on date of absorption
