Case Note & Summary
The petitioners, thirty-seven Field Workers, were originally recruited as daily wage workers in the Directorate of Agriculture, Government of Goa, between 1985 and 1989. They were granted temporary status under a 1997 scheme and placed in the pay scale of Field Workers (Rs.2650-60-3150-65-3540). The temporary status was withdrawn in 1998, and they were later declared surplus and redeployed to the Directorate of Health Services in 1999, with their pay scale indicated as Rs.2650-60-3150-65-3540. In 2003, their services were regularized, but their pay scale was reduced to Rs.2550-3220. The petitioners contended that the reduction was made without any hearing, violated a previous Division Bench order in Writ Petition No.263/2000 and Civil Application (Review) No.19/2000, and was discriminatory. They filed representations and a legal notice before approaching the High Court under Articles 226 and 227. The respondents, in their affidavit, admitted the error and stated that they had already rectified the mistake by issuing an Office Memorandum in 2008, in compliance with the earlier court direction. The High Court noted that the Division Bench in Writ Petition No.263/2000 had categorically held that present remuneration cannot be reduced without valid reason or notice. Applying that principle, the Court allowed the writ petition in terms of prayer clause (a), directing restoration of the pay scale with all consequential benefits, and imposed no costs.
Headnote
A) Service Law - Pay Protection - Reduction of Remuneration on Regularization - Constitution of India, Articles 226, 227 - The petitioners were Field Workers whose pay scale was reduced upon regularization from Rs.2650-3540 to Rs.2550-3220 without notice or valid reason. The court relied on a previous Division Bench order in Writ Petition No.263/2000 which held that present remuneration cannot be reduced without valid reason or notice. Respondents admitted the error and rectified it. Held that the reduction was illegal and petitioners are entitled to restoration of pay scale with consequential benefits. (Paras 4-5)
B) Natural Justice - Audi Alteram Partem - Reduction of Pay Without Notice - Constitution of India, Articles 226, 227 - The petitioners' pay scale was reduced upon regularization without any prior hearing or notice, which contravenes the principles of natural justice. Held that such administrative action affecting substantive rights of employees must be preceded by a fair hearing. (Paras 2,4)
Issue of Consideration
Whether the reduction of the petitioners' pay scale upon regularization was illegal and violated the Division Bench order in Writ Petition No.263/2000 and principles of natural justice
Final Decision
The petition is allowed in terms of prayer clause (a). The respondents were directed to restore the pay scale and provide all consequential benefits. No order as to costs.
Law Points
- Reduction of remuneration upon regularization is illegal without valid reason or notice
- pay scale of redeployed employees must be protected
- principle of service jurisprudence that present remuneration cannot be reduced
- violation of natural justice in administrative action
Case Details
2013 LawText (BOM) (02) 81
Writ Petition No.195 of 2006
M.S. Sonak, J. Supekar, S. Vahidulla
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Nature of Litigation
Writ petition under Articles 226 and 227 seeking restoration of pay scale after reduction upon regularization
Remedy Sought
Restoration of pay scale of Rs.2610-3540 with consequential benefits from November-December 2004
Filing Reason
The respondents reduced the pay scale from Rs.2650-3540 to Rs.2550-3220 at the time of regularization without notice or hearing, violating earlier court orders
Previous Decisions
Writ Petition No.263/2000 decided in September 2000 held that present remuneration cannot be reduced without valid reason or notice; Civil Application (Review) No.19/2000 also addressed the issue
Issues
Whether the reduction of pay scale upon regularization was illegal
Whether the petitioners were entitled to restoration of pay scale and consequential benefits
Submissions/Arguments
Petitioners contended that the reduction violated natural justice and the Division Bench order in WP 263/2000, and that similarly placed employees in the River Navigation Department had their pay protected
Respondents admitted the error and stated that they had rectified it by issuing an Office Memorandum in 2008, in compliance with the earlier court direction
Ratio Decidendi
An employee's present remuneration cannot be reduced at the time of regularization without any valid reason or notice to the employee. Such reduction is illegal and violates service jurisprudence.
Judgment Excerpts
8. Another contention raised in the Petition is that after the said Notification, the Petitioner's service was regularized by the Government of Goa. In that process, his remuneration that he was receiving before the date of regularization was reduced. This can never happen in service jurisprudence. The present remuneration of an employee cannot be reduced without any valid reason, nor with any notice to the employee. Therefore, if the Petitioner's contention is correct that his remuneration has been reduced, the Government is directed to rectify that error and protect his remuneration that he was drawing on the previous day of his regularization.
Procedural History
The petitioners were recruited as daily wage workers in the Directorate of Agriculture between 1985-1989. In 1997, they were given temporary status and pay scale of Field Workers (Rs.2650-60-3150-65-3540). The temporary status was withdrawn on 3rd July 1998. On 24th December 1998, they were declared surplus and redeployed to the Directorate of Health Services as Field Workers in January 1999, with their pay scales indicated as Rs.2650-60-3150-65-3540. Their services were regularized on 27th November 2003, but the pay scale was reduced to Rs.2550-3220. The petitioners filed a representation on 22nd December 2003 and a legal notice on 15th November 2005, but received no response. They then filed Writ Petition No.195 of 2006. During its pendency, the respondents issued an Office Memorandum on 31st March 2008 directing all Heads of Departments to comply with the earlier court order in WP 263/2000.
Acts & Sections
- Constitution of India: Articles 226, 227
