Case Note & Summary
The case involves a Writ Appeal filed by the State of Tamil Nadu and the Managing Director of Arasu Rubber Corporation Limited against a Writ Order dated 01.02.2021 in W.P.No.13025 of 2007. The respondent, V. Shunmugam, a Lineman in Arasu Rubber Corporation Limited, sought quashing of a rejection order and fixation of his pay scale at Rs.610-1075 from 01.06.1988 with subsequent revisions and 5% personal pay from 01.08.1992. The Writ Court had granted relief relying on Rule 34 of the Arasu Rubber Corporation Service Rules, which states that pay and allowances shall be paid at rates applicable to State Government employees. The appellants contended that Government approval is mandatory for implementing equivalent pay scales, and that the Government had rejected such approval. They relied on several Government letters, including Letter No.48070/BPE/2010-1 dated 23.09.2010, which explicitly state that no Government Order shall be adopted by Public Sector Undertakings without prior Government approval, and that financial implications must be endorsed by the Finance Head. The Court analyzed Rule 34 and the Government letters, concluding that the respondent was not entitled to the pay scale without prior Government approval. The Court allowed the appeal, set aside the Writ Order, and dismissed the Writ Petition. No costs were awarded.
Headnote
A) Service Law - Pay Equivalence - Government Approval - Rule 34 of Arasu Rubber Corporation Service Rules - The core issue was whether a Lineman of Arasu Rubber Corporation Limited is entitled to the equivalence scale of pay as applicable to Linemen in the Tamil Nadu Government Department. The Court held that Rule 34 contemplates pay and allowances at rates applicable to State Government employees, but only with prior approval of the Government. Since the Government had rejected approval, the respondent was not entitled to the pay scale. (Paras 2-4) B) Service Law - Public Sector Undertakings - Adoption of Government Orders - Government Letters dated 04.10.2025, 25.02.2025, 18.08.2022, and 23.09.2010 - The Court relied on Government letters which mandate that no Government Order applicable to Government employees shall be adopted by Public Sector Undertakings without prior Government approval. The letters also require full financial implications and sustainability to be endorsed by the Finance Head. (Para 3)
Issue of Consideration
Whether a Lineman working in Arasu Rubber Corporation Limited is entitled to the equivalence scale of pay as applicable to Linemen working in the Government of Tamil Nadu Department, without prior Government approval.
Final Decision
The appeal is allowed. The impugned order dated 01.02.2021 in W.P.No.13025 of 2007 is set aside. Consequently, the Writ Petition stands dismissed. No costs. Connected miscellaneous petition is closed.
Law Points
- Pay equivalence
- Government approval mandatory
- Rule 34 of Arasu Rubber Corporation Service Rules
- Prior approval requirement
- Public Sector Undertakings
