Bombay High Court Dismisses State's Petition Challenging Tribunal's Order Striking Down Clarification Excluding Retired Employees from Revised ACPS. Clarification Excluding Employees Who Retired Between 1.10.2006 and 31.3.2010 from Retrospective Benefit of Revised Assured Career Progression Scheme Held Arbitrary and Violative of Article 14.

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

The State of Maharashtra formulated a Revised Assured Career Progression Scheme (ACPS) vide Government Resolution (G.R.) dated 1.4.2010, which was made retrospectively applicable from 1.10.2006. The scheme entitled employees to a second benefit of ACPS upon completion of 24 years of service. However, by a subsequent G.R. dated 1.7.2011, the State purported to 'clarify' that the benefit of the scheme would not apply to employees who had retired between 1.10.2006 and 31.3.2010. The respondents, who had retired during that period, challenged the clarification before the Maharashtra Administrative Tribunal. The Tribunal struck down the clarification as arbitrary, unreasonable, and violative of Article 14 of the Constitution of India. Aggrieved, the State filed the present writ petition. The High Court, after hearing the parties, upheld the Tribunal's decision. The Court held that the clarification was discriminatory as it sought to exclude a class of employees who had retired during the period of retrospective operation of the scheme, without any rational basis. The Court found that the clarification was not a genuine clarification but an attempt to deny the benefit of the scheme to a particular group, which was arbitrary and violative of Article 14. Accordingly, the writ petition was dismissed, and the Tribunal's order was affirmed.

Headnote

A) Service Law - Assured Career Progression Scheme - Retrospective Application - Clarification Excluding Retired Employees - The State of Maharashtra formulated a Revised Assured Career Progression Scheme vide G.R. dated 1.4.2010, made retrospectively applicable from 1.10.2006. A subsequent clarification dated 1.7.2011 purported to exclude employees who retired between 1.10.2006 and 31.3.2010 from the benefit. The Maharashtra Administrative Tribunal struck down the clarification as arbitrary, unreasonable, and violative of Article 14. The High Court upheld the Tribunal's decision, holding that the clarification was discriminatory and could not be sustained. (Paras 2-3)

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Issue of Consideration

Whether the clarification dated 1.7.2011 excluding employees who retired between 1.10.2006 and 31.3.2010 from the benefit of the Revised Assured Career Progression Scheme notified on 1.4.2010 (with retrospective effect from 1.10.2006) is arbitrary, unreasonable, and violative of Article 14 of the Constitution of India.

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Final Decision

The High Court dismissed the writ petition and upheld the order of the Maharashtra Administrative Tribunal dated 22.2.2014, which struck down the clarification dated 1.7.2011 as arbitrary, unreasonable, and violative of Article 14 of the Constitution of India.

Law Points

  • Revised Assured Career Progression Scheme
  • retrospective application
  • clarification excluding retired employees
  • Article 14
  • arbitrariness
  • unreasonableness
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Case Details

2017 LawText (BOM) (07) 82

WRIT PETITION NO. 4848 OF 2016

2017-07-24

Smt. V.K. Tahilramani, Sandeep K. Shinde

Mr. N.C. Walimbe (AGP for State/Petitioners), Ms. Varsha B. Kapse (Advocate for Respondents 1 to 14)

The State of Maharashtra & Ors.

Subhas s/o. Ramrao Pawar & Ors.

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Nature of Litigation

Writ petition challenging the judgment and order of the Maharashtra Administrative Tribunal striking down a clarification issued by the State of Maharashtra regarding the Revised Assured Career Progression Scheme.

Remedy Sought

The State of Maharashtra sought to set aside the Tribunal's order dated 22.2.2014 which struck down the clarification dated 1.7.2011.

Filing Reason

The State was aggrieved by the Tribunal's decision that the clarification excluding employees who retired between 1.10.2006 and 31.3.2010 from the benefit of the Revised ACPS was arbitrary, unreasonable, and violative of Article 14.

Previous Decisions

The Maharashtra Administrative Tribunal, by judgment and order dated 22.2.2014, struck down the clarification dated 1.7.2011 as unconstitutional.

Issues

Whether the clarification dated 1.7.2011 excluding employees who retired between 1.10.2006 and 31.3.2010 from the benefit of the Revised Assured Career Progression Scheme is arbitrary and violative of Article 14.

Submissions/Arguments

The State argued that the clarification was necessary to explain the scope of the scheme and that it was not discriminatory. The respondents contended that the clarification was arbitrary and unreasonable as it sought to deny the benefit of the scheme to a class of employees who had retired during the period of retrospective operation.

Ratio Decidendi

A clarification that seeks to exclude a class of employees from the benefit of a retrospectively applicable scheme, without any rational basis, is arbitrary and discriminatory, and therefore violative of Article 14 of the Constitution of India.

Judgment Excerpts

The Tribunal, by the impugned judgment and order has struck down such 'clarification' inter alia on the ground that the same is arbitrary, unreasonable, violative of Article 14 of the Constitution of India and therefore unconstitutional.

Procedural History

The respondents filed an Original Application before the Maharashtra Administrative Tribunal challenging the clarification dated 1.7.2011. The Tribunal allowed the O.A. and struck down the clarification on 22.2.2014. The State of Maharashtra then filed the present writ petition before the High Court of Judicature at Bombay, which was dismissed on 24.7.2017.

Acts & Sections

  • Constitution of India: Article 14
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