Case Note & Summary
The petitioners, six retired Class-III employees of the Aurangabad Municipal Corporation, filed a writ petition under Article 226 of the Constitution of India seeking quashing of a clause in Resolution No.1161 dated 11.09.2019 that denied them arrears of revised pay under the 7th Pay Commission for the period from 01.01.2016 to 31.08.2019. The State Government had issued a GR on 30.01.2019 adopting the 7th Pay Commission recommendations for government employees w.e.f. 01.01.2016, followed by a GR on 02.03.2019 for Revised Service Assured Career Scheme. On 02.08.2019, the Urban Development Department made the revised pay scale applicable to employees of all Municipal Corporations in Maharashtra. The Aurangabad Municipal Corporation passed Resolution No.1161 on 11.09.2019 implementing the revised pay but denied arrears for the period before the resolution date. The petitioners, who had retired between 2016 and 2019, were thus denied arrears for the period they had worked. The court held that the denial of arrears was arbitrary and discriminatory, as the petitioners had rendered service during that period and were entitled to the revised pay from the date of its applicability. The court allowed the petition, quashed the offending clause, and directed the Corporation to pay the arrears with consequential pensionary benefits within three months.
Headnote
A) Service Law - Pay Fixation - Arrears of 7th Pay Commission - Denial of arrears to retired employees from 01.01.2016 to 31.08.2019 held arbitrary - Petitioners, retired Class-III employees of Aurangabad Municipal Corporation, were denied arrears despite the State Government adopting the 7th Pay Commission recommendations for municipal employees w.e.f. 01.01.2016 - The Corporation's resolution denying arrears for the period prior to the resolution date was struck down - Held that the denial was discriminatory and violative of Articles 14 and 16 of the Constitution of India (Paras 1-10).
Issue of Consideration
Whether the denial of arrears of revised pay under the 7th Pay Commission for the period from 01.01.2016 to 31.08.2019 to the petitioners, who retired during that period, is arbitrary and violative of Articles 14 and 16 of the Constitution of India.
Final Decision
The petition is allowed. The clause in Resolution No.1161 dated 11.09.2019 denying arrears for the period 01.01.2016 to 31.08.2019 is quashed and set aside. The Respondent No.2 is directed to pay the arrears of revised pay for the said period to the petitioners and to provide consequential pensionary benefits including gratuity, commutation, and leave encashment within three months.
Law Points
- Doctrine of legitimate expectation
- Right to equal pay for equal work
- Arbitrariness in denial of arrears
- Applicability of 7th Pay Commission to municipal employees
