Supreme Court Allows Employee's Appeal in Pay Anomaly Case — Directs Revision of Pay Scale from Date of Appointment. Employee entitled to higher pay scale on parity with similarly situated persons who were granted benefit after removal of anomalies.

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Case Note & Summary

The present appeal arises from a judgment of the Division Bench of the High Court of Jharkhand at Ranchi, which set aside the order of the learned Single Judge in a writ petition filed by the Employee, Sanjay Kumar Upadhyay, against the State of Jharkhand and others. The dispute pertains to the grant of higher pay scale to the Employee after removal of anomalies in pay scale, on parity with other similarly situated persons who had already been granted the said benefit by the Employer. The Employee was appointed as an Industries Extension Officer (IEO) through a common competitive examination conducted by the Bihar State for Graduate-level Non-gazetted Class III posts. The learned Single Judge, relying on judgments of the Patna High Court in Nagendra Sahani v. State of Bihar and Alakh Kumar Sinha v. State of Bihar, directed the Respondent-Employer to revise the pay scale of the Employee with effect from the date of his appointment in the pay scale of Rs. 1600-2780 along with consequential benefits like arrears of salary. The Respondent-Employer filed a Letters Patent Appeal, which was allowed by the Division Bench, setting aside the Single Judge's directions. Hence, the Employee preferred the present appeal before the Supreme Court. The Supreme Court, after considering the facts and circumstances, allowed the appeal and restored the order of the learned Single Judge, thereby directing the revision of pay scale from the date of appointment.

Headnote

A) Service Law - Pay Anomaly - Higher Pay Scale - Parity - The dispute relates to grant of higher pay scale to the Employee after removal of anomalies in pay scale, on parity with other similarly situated persons who have been already granted the said benefit by the Employer. The learned Single Judge directed revision of pay scale from the date of appointment, which was set aside by the Division Bench. The Supreme Court allowed the appeal, restoring the Single Judge's order. (Paras 1-3)

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Issue of Consideration

Whether the Employee is entitled to revision of pay scale from the date of his appointment on parity with other similarly situated persons who have been granted the said benefit after removal of anomalies in pay scale.

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Final Decision

The Supreme Court allowed the appeal, set aside the Division Bench judgment, and restored the order of the learned Single Judge directing revision of pay scale from the date of appointment with consequential benefits.

Law Points

  • Pay parity
  • removal of anomalies
  • higher pay scale
  • similarly situated persons
  • Letters Patent Appeal
  • writ petition
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Case Details

2025 INSC 1445

Civil Appeal No. 14046 of 2024

2025-01-01

J.K. Maheshwari J.

2025 INSC 1445

Sanjay Kumar Upadhyay

State of Jharkhand and Ors.

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Nature of Litigation

Civil appeal against Division Bench judgment setting aside Single Judge's order directing revision of pay scale.

Remedy Sought

Employee sought revision of pay scale from date of appointment on parity with others.

Filing Reason

Employee was denied higher pay scale after removal of anomalies, while others were granted.

Previous Decisions

Single Judge allowed writ petition; Division Bench set aside that order.

Issues

Whether the Employee is entitled to revision of pay scale from the date of his appointment on parity with other similarly situated persons who have been granted the said benefit after removal of anomalies in pay scale.

Submissions/Arguments

Employee argued for parity with similarly situated persons who were granted higher pay scale. Employer opposed, leading to Letters Patent Appeal which was allowed.

Ratio Decidendi

An employee is entitled to higher pay scale on parity with similarly situated persons who have been granted the benefit after removal of anomalies, and such benefit should be granted from the date of appointment.

Judgment Excerpts

The dispute between the parties herein relates to grant of higher pay scale to the Employee after removal of anomalies in pay scale, on parity with other similarly situated persons who have been already granted the said benefit by the Respondent – Employer. The learned Single Judge relying upon judgement of High Court of Patna in Nagendra Sahani v. State of Bihar and Alakh Kumar Sinha v. State of Bihar, in the Writ Petition had directed the Respondent – Employer to revise the pay scale of the Employee with effect from the date of his appointment in the pay scale of Rs. 1600 – 2780 along with other consequential benefits, i.e., arrears of salary etc.

Procedural History

Employee filed writ petition (W.P.(S) No. 5743 of 2005) before Single Judge of Jharkhand High Court, which was allowed on 14.12.2011. Employer filed LPA No. 269 of 2012, which was allowed by Division Bench on 30.03.2022, setting aside Single Judge's order. Employee then filed Civil Appeal No. 14046 of 2024 before Supreme Court, which was allowed.

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