Bombay High Court Dismisses Petitioner's Challenge to Foreign Allowance Revision for ITEC Deputationists. Policy decision on allowance rates not subject to judicial review unless arbitrary or mala fide.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The petitioner, Basant Kumar Bihani, filed a writ petition under Article 226 of the Constitution of India challenging the judgment and order dated 1st August 2013 passed by the Mumbai Bench of the Central Administrative Tribunal (CAT) dismissing Original Application No. 98 of 2011. The petitioner also challenged the order dated 22nd August 2014 dismissing the review application. The dispute arose from an order dated 4th September 1995 by the Government of India, Ministry of External Affairs, which revised the rate of Foreign Allowance for employees working on deputation under the Indian Technical and Economic Cooperation Programme (ITEC) in Maldives. The revision reduced the allowance from Rs. 50,340/- (payable to Second Secretary level officers in the Indian Mission) to Rs. 40,845/- for deputationists drawing pay above Rs. 3,000/- per month. The petitioner contended that the reduction was arbitrary and discriminatory, as it created disparity between ITEC deputationists and Second Secretary level officers. The respondent, Union of India, argued that the revision was a policy decision based on administrative and financial considerations. The High Court, after hearing the petitioner in person and the counsel for the respondent, held that the revision of foreign allowance was a policy decision of the government and not subject to judicial review unless it was arbitrary, irrational, or violative of fundamental rights. The court found no such infirmity in the impugned orders and dismissed the writ petition, upholding the CAT's decision.

Headnote

A) Service Law - Foreign Allowance - Revision of Allowance - Policy Decision - The petitioner challenged the reduction of foreign allowance for ITEC deputationists in Maldives from Rs. 50,340/- to Rs. 40,845/-. The court held that the revision was a policy decision based on administrative considerations and not subject to judicial review unless arbitrary or mala fide. The CAT's dismissal of the OA was upheld. (Paras 2-4)

B) Administrative Law - Judicial Review - Policy Decision - The court reiterated that courts cannot interfere with policy decisions unless they are arbitrary, irrational, or violate fundamental rights. The revision of foreign allowance was a matter of executive policy. (Paras 2-4)

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Issue of Consideration

Whether the revision of foreign allowance for ITEC deputationists from Rs. 50,340/- to Rs. 40,845/- was arbitrary and discriminatory, and whether the CAT erred in dismissing the Original Application.

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Final Decision

Writ Petition dismissed. The impugned orders of the CAT dated 1st August 2013 and 22nd August 2014 are upheld.

Law Points

  • Judicial review of policy decisions
  • Foreign allowance revision
  • Parity in pay scales
  • Administrative Tribunal jurisdiction
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Case Details

2024 LawText (BOM) (02) 225

Writ Petition No. 11415 of 2014

2024-02-06

Devendra Kumar Upadhyaya, CJ., Arif S. Doctor, J.

2024:BHC-AS:6277-DB

Basant Kumar Bihani (petitioner-in-person), Dr. G. R. Sharma (for respondent)

Basant Kumar Bihani

Union of India

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Nature of Litigation

Writ petition under Article 226 challenging CAT order dismissing Original Application regarding revision of foreign allowance.

Remedy Sought

Quashing of CAT order dated 1st August 2013 and order dated 22nd August 2014, and restoration of higher foreign allowance.

Filing Reason

Petitioner aggrieved by reduction of foreign allowance from Rs. 50,340/- to Rs. 40,845/- for ITEC deputationists in Maldives.

Previous Decisions

CAT dismissed Original Application No. 98 of 2011 on 1st August 2013 and review application on 22nd August 2014.

Issues

Whether the revision of foreign allowance for ITEC deputationists was arbitrary and discriminatory. Whether the CAT erred in dismissing the Original Application.

Submissions/Arguments

Petitioner argued that the reduction in foreign allowance was arbitrary and created disparity with Second Secretary level officers. Respondent argued that the revision was a policy decision based on administrative and financial considerations, not subject to judicial review.

Ratio Decidendi

The revision of foreign allowance is a policy decision of the government. Courts cannot interfere with such policy decisions unless they are arbitrary, irrational, or violate fundamental rights. No such infirmity was found in the present case.

Judgment Excerpts

By instituting the proceedings of this petition under Article 226 of the Constitution of India, the petitioner takes exception to the judgment and order dated 1st August 2013 passed by the Mumbai Bench of the Central Administrative Tribunal... The order dated 4th September 1995 passed by the Government of India, Ministry of External Affairs, whereby the rate of Foreign Allowance admissible to employees working on deputation in Indian Technical and Economic Cooperation Programme (ITEC), Maldives was revised...

Procedural History

Petitioner filed Original Application No. 98 of 2011 before CAT, Mumbai Bench, which was dismissed on 1st August 2013. Review application was dismissed on 22nd August 2014. Petitioner then filed Writ Petition No. 11415 of 2014 before the Bombay High Court.

Acts & Sections

  • Constitution of India: Article 226
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