Supreme Court Upholds High Court Decision on Equivalence of Posts and Pay Scale Commencement Under States Reorganisation Act; Appeals Dismissed. Equivalence of First Grade Clerks to Aval Karkuns Rejected and Revised Pay Scales Directed to Operate from 1 November 1956, Not 1 May 1960, Under Sections 115 and 116 of States Reorganisation Act, 1956 and Rules 10 and 12 of Allocated Government Servants Rules, 1957.

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Case Note & Summary

The dispute concerned the correctness of Government resolutions relating to the pay scales of First Grade clerks in the Revenue Department following the reorganisation of States in 1956. Three First Grade clerks attached to the offices of Collectors of Wardha, Bhandara and Chanda districts filed a petition under Article 226 of the Constitution before the Bombay High Court. They challenged Government Resolution No. SR/INT/1057/VI dated October 21, 1957, which continued the existing scale of pay of Rs. 80-5-130 for their posts, and alternatively sought to quash Government Resolution No. SR/INT/2159/21365-F dated October 12, 1960, which fixed a new scale of pay of Rs. 100-8-140 but only from May 1, 1960. The petitioners contended that their posts should be equated with the post of Aval Karkuns in the former State of Bombay and that the revised scale should apply from November 1, 1956, the date the States Reorganisation Act took effect. The High Court rejected the claim for equivalence but accepted the contention that the revised pay scale should commence on November 1, 1956, and not May 1, 1960. Both the clerks and the State Government appealed to the Supreme Court. The clerks argued that the Government was bound to find an equivalent post, that Aval Karkuns was the nearest equivalent, and that Rule 12 of the Allocated Government Servants Rules, 1957, which permitted non-equation, was discriminatory. The State contended that under Rule 10, the Government could fix pay scales from any subsequent date due to the phrase "except where Government otherwise directs". The Supreme Court held that the duties of Aval Karkuns were entirely different from those of First Grade clerks, so no equivalent post existed and the Government was not obliged to equate the posts. It further held that Rule 12 was not discriminatory because a rule providing special treatment for an odd case is not necessarily discriminatory; discrimination can be proved only if equivalence is not carried out although an equivalent post is available. On the date of pay scale application, the Court interpreted Rules 10 and 12 together and concluded that the date of operation of revised scales was intended to be November 1, 1956, and the Government could not change that date. Both appeals were dismissed, and the High Court's judgment was affirmed.

Headnote

A) Service Law - Equivalence of Posts - States Reorganisation Act, 1956, Sections 115-116 and Allocated Government Servants (Absorption, Seniority, Pay & Allowances) Rules, 1957, Rule 12 - Equivalence between a post in the reorganised State and a former State must be based on similarity of duties; mere designation or pay scale similarity is not enough - The court held that Aval Karkuns in the former State of Bombay performed duties entirely different from those of First Grade clerks in the Collectorate, therefore no equivalent post was available; Government was not obliged to equate the posts under Sections 115 and 116 - Held that the State Government's refusal to equate was correct (Paras 138-139).

B) Constitutional Law - Discrimination - Rule 12 of Allocated Government Servants Rules, 1957 - A rule providing special treatment for an odd post is not necessarily discriminatory - Discrimination can be proved only if equivalence is not carried out although an equivalent post is available; Rule 12 was made due to multifariousness of posts in different components and to treat un-equatable posts independently - Held that Rule 12 is not discriminatory (Paras 138-139).

C) Service Law - Pay Scale Commencement - States Reorganisation Act, 1956, Section 115 read with Allocated Government Servants Rules, 1957, Rules 10 and 12 - The power to prescribe new pay scale under Rule 12 must be exercised from 1 November 1956, the date of States reorganisation - The court interpreted Rule 10 as not enabling Government to change the date of operation of the scale, only to make special orders contrary to clauses (i) and (ii); Rules 14-19 and 23 consistently mention 1 November 1956 as the fixed date line - Held that revised scales must come into operation from 1 November 1956, not 1 May 1960 (Paras 140).

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Issue of Consideration

1. Whether the posts of First Grade clerks in the Collectorate should be equated with the post of Aval Karkuns under Sections 115 and 116 of the States Reorganisation Act, 1956 and the Allocated Government Servants Rules, 1957. 2. Whether Rule 12 of the said Rules, which permits a post not to be equated, is discriminatory. 3. Whether the revised pay scale for First Grade clerks should commence from 1 November 1956 or from 1 May 1960 under Rules 10 and 12 of the said Rules.

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Final Decision

Both appeals were dismissed. The Supreme Court affirmed the Bombay High Court's judgment: it rejected the claim for equivalence of First Grade clerks with Aval Karkuns, upheld the validity of Rule 12 against the challenge of discrimination, and held that the revised pay scale must operate from 1 November 1956, not 1 May 1960.

Law Points

  • Equivalence of posts under States Reorganisation Act requires actual similarity of duties
  • rule providing special treatment for an odd post is not discriminatory
  • discrimination can be proved only if equivalent post is available but equivalence not carried out
  • date for application of revised pay scale under Rule 12 is 1 November 1956
  • Government cannot change the date of operation of new pay scale under Rule 10
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Case Details

1965 LawText (SC) (10) 10

Civil Appeals Nos. 259 and 260 of 1964

1965-10-08

M. Hidayatullah, P.B. Gajendragadkar, K.N. Wanchoo, J.C. Shah, S.M. Sikri

1966 AIR 625, 1966 SCR (2) 134

S. V. Gupte, Solicitor-General, Ganapathy Iyer, B. R. G. K. Achar, N. D. Kharkhanis, A. G. Ratnaparkhi

State of Maharashtra (Appellant in Civil Appeal No. 259 of 1964); Three First Grade Clerks (Appellants in Civil Appeal No. 260 of 1964)

Ministerial Service Association (Respondent in Civil Appeal No. 259 of 1964); State of Maharashtra (Respondent in Civil Appeal No. 260 of 1964)

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Nature of Litigation

Original petition under Article 226 of the Constitution before the Bombay High Court challenging government resolutions regarding pay scales and equivalence of posts; cross appeals to the Supreme Court.

Remedy Sought

Three First Grade clerks sought writs of certiorari and mandamus to quash Government Resolutions dated October 21, 1957 and October 12, 1960; to equate their posts with Aval Karkuns; alternatively to direct that revised pay scale apply from November 1, 1956.

Filing Reason

After States reorganisation, posts from Nagpur division integrated with former Bombay State; Government resolved not to equate first grade clerks' posts and fixed revised pay scale from May 1, 1960, leading to grievance about equivalence and date of pay revision.

Previous Decisions

Bombay High Court rejected claim for equivalence but accepted that revised pay scale should commence from November 1, 1956, not May 1, 1960; certified appeals under Articles 132(1) and 133 of the Constitution.

Issues

Whether the posts of First Grade clerks should be equated with the post of Aval Karkuns under Sections 115 and 116 of the States Reorganisation Act, 1956 and the Allocated Government Servants Rules, 1957. Whether Rule 12 of the Allocated Government Servants Rules, 1957, which permits a post not to be equated, is discriminatory. Whether the revised pay scale for First Grade clerks should commence from 1 November 1956 or from 1 May 1960 under Rules 10 and 12 of the Allocated Government Servants Rules, 1957.

Submissions/Arguments

The three First Grade clerks contended that the Government was bound to find an equivalent post for them and that the nearest equivalent post was Aval Karkuns; they also argued that by not assigning an equivalent post they were discriminated against and that Rule 12, which provides that a post need not be equated, was discriminatory. The State Government contended that under Rule 10, the words "except where Government otherwise directs" allowed the Government to fix the pay scales of an allocated Government servant not only from 1 November 1956 but also from any subsequent date, including 1 May 1960.

Ratio Decidendi

Equivalence of posts under the States Reorganisation Act requires actual similarity of duties; mere designation or pay scale similarity is insufficient. A rule providing special treatment for an odd post is not necessarily discriminatory; discrimination can be proved only if equivalence is not carried out although an equivalent post is available. Under Rules 10 and 12 of the Allocated Government Servants Rules, 1957, the date of operation of revised pay scales is fixed as 1 November 1956, and the Government cannot change that date.

Judgment Excerpts

Discrimination can be proved only if equivalence is not carried out although an equivalent post is available. Rule 12 was made in view of the multifariousness of the posts existing in the different components from which the principal successor State was formed because it was obvious that some existing posts could not simply be equated with posts in the principal successor State. The words of r. 10 were not intended to change the date on which the scales of pay were to come into operation, namely 1st November, 1956, but to enable Government to make special orders which were not in accordance with cls. (i) and (ii) of the rule. Every one of the rules, 14 to 19 and r. 23 mention over and over again that the new scales of pay shall be as on or from 1st November, 1956.

Procedural History

Three First Grade clerks filed Special Civil Application No. 42 of 1961 before the Bombay High Court challenging Government Resolutions; the High Court delivered judgment on October 27, 1961, rejecting the claim for equivalence but directing the revised pay scale to apply from November 1, 1956. Appeals were filed in the Supreme Court as Civil Appeals Nos. 259 and 260 of 1964; the Supreme Court delivered judgment on October 8, 1965.

Acts & Sections

  • States Reorganisation Act, 1956: 115, 116
  • Allocated Government Servants (Absorption, Seniority, Pay & Allowances) Rules, 1957: 2, 10, 11, 12, 14, 15, 16, 17, 18, 19, 23
  • Constitution of India: Articles 132, 133, 226, 309
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