Madras High Court Dismisses State Appeal in Pay Anomaly Case — Stepping Up of Pay Allowed Despite Transfer Between Panchayat Unions. Rule 9 of Tamil Nadu Elementary Education Subordinate Service Rules does not bar stepping up of pay when juniors draw higher pay due to subsequent promotion.

High Court: Madras High Court Bench: Principal In Favour of Accused
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Case Note & Summary

The case pertains to a writ appeal filed by the State of Tamil Nadu challenging an order dated 23.01.2023 in W.P.No.13232 of 2016, which allowed the respondents' claim for stepping up of pay. The respondents, M.Seetha and A.Sampath, were initially appointed as Secondary Grade Teachers on 08.10.1996 and 04.08.1997 respectively in different Panchayat Unions. After completing ten years of service, they were awarded Selection Grade and later promoted as Primary School Headmasters on 30.06.2012 and 24.07.2012. The grievance was that their juniors were drawing higher pay due to subsequent promotions, creating a pay anomaly. The respondents' request for stepping up of pay was initially considered but later cancelled by the authorities. Consequently, they filed a writ petition, which was allowed by the learned Single Judge. The State appealed, arguing that upon transfer between Panchayat Unions, the respondents lost their seniority under Rule 9 of the Tamil Nadu Elementary Education Subordinate Service Rules, and therefore stepping up of pay was not permissible. The Division Bench examined the contentions and held that the loss of seniority under Rule 9 does not bar the application of the stepping up principle. The court observed that the anomaly arose because juniors were drawing higher pay due to subsequent promotions, and the respondents, though seniors, were receiving less pay. The court emphasized the principle of equal pay for equal work and directed that the respondents' pay be stepped up on par with their juniors, subject to the usual conditions. The writ appeal was dismissed, and the order of the learned Single Judge was confirmed.

Headnote

A) Service Law - Pay Anomaly - Stepping Up of Pay - Fundamental Rules 22, 23 - The respondents, initially appointed as Secondary Grade Teachers and later promoted as Headmasters, sought stepping up of pay on par with their juniors who were drawing higher pay. The State contended that due to transfer between Panchayat Unions, seniority was lost under Rule 9 of the Tamil Nadu Elementary Education Subordinate Service Rules, and thus stepping up was not permissible. The court held that the loss of seniority does not disentitle the respondents to stepping up of pay when the anomaly arose from subsequent promotions of juniors, and the principle of equal pay for equal work applies. (Paras 2-6)

B) Service Law - Transfer - Seniority - Rule 9 of Tamil Nadu Elementary Education Subordinate Service Rules - The court clarified that Rule 9 only governs seniority upon transfer and does not override the entitlement to stepping up of pay under Fundamental Rules. The anomaly in pay must be rectified to avoid discrimination between seniors and juniors performing similar duties. (Paras 4-6)

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Issue of Consideration

Whether the respondents are entitled to stepping up of pay on par with their juniors despite having lost seniority upon transfer between Panchayat Unions under Rule 9 of the Tamil Nadu Elementary Education Subordinate Service Rules.

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Final Decision

The writ appeal is dismissed. The order dated 23.01.2023 in W.P.No.13232 of 2016 is confirmed. No costs. Consequently, connected miscellaneous petition is closed.

Law Points

  • Stepping up of pay
  • Pay anomaly
  • Seniority on transfer
  • Rule 9 Tamil Nadu Elementary Education Subordinate Service Rules
  • Fundamental Rules 22 and 23
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Case Details

2026 LawText (MAD) (06) 192

W.A.No.3581 of 2023 and C.M.P.No.29326 of 2023

2026-06-23

S.M.Subramaniam, N.Senthilkumar

2026:MHC:2407

Dr.R.Gouri (Government Counsel for appellants), No Appearance for respondents

The Secretary To Government, School Education Department, Chennai; The Director of Elementary Education, Chennai; The District Elementary Education Officer, Thiruvannamalai; The Assistant Elementary Education Officer, Vembakkam Panchayat Union, Thiruvannamalai; The District Educational Officer, Cheyyar Education District, Thiruvannamalai

M.Seetha; Thiru.A.Sampath

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Nature of Litigation

Writ Appeal against order allowing stepping up of pay

Remedy Sought

Respondents sought stepping up of pay on par with juniors

Filing Reason

Pay anomaly due to juniors drawing higher pay after promotion

Previous Decisions

Learned Single Judge allowed W.P.No.13232 of 2016 on 23.01.2023

Issues

Whether the respondents are entitled to stepping up of pay despite loss of seniority under Rule 9 of the Tamil Nadu Elementary Education Subordinate Service Rules upon transfer between Panchayat Unions.

Submissions/Arguments

Appellants argued that upon transfer, respondents lost seniority under Rule 9, so stepping up of pay is not permissible. Respondents contended that pay anomaly exists as juniors draw higher pay, and they are entitled to stepping up.

Ratio Decidendi

Loss of seniority under Rule 9 of the Tamil Nadu Elementary Education Subordinate Service Rules upon transfer does not disentitle an employee to stepping up of pay when juniors draw higher pay due to subsequent promotions. The principle of equal pay for equal work and the object of Fundamental Rules 22 and 23 require rectification of pay anomalies to avoid discrimination.

Judgment Excerpts

The grievance of the respondents is that the pay anomaly occurred between the juniors and seniors were not rectified. Learned Government Counsel ... would mainly contend that on transfer from one Panchayat Union to another Panchayat Union, the respective respondents have lost their seniority and therefore, stepping up of pay would not arise at all in view of Rule 9 of the Tamil Nadu Elementary Education Subordinate Service Rules.

Procedural History

Respondents filed W.P.No.13232 of 2016 seeking stepping up of pay. Learned Single Judge allowed the writ petition on 23.01.2023. State preferred W.A.No.3581 of 2023 challenging that order. The Division Bench heard the appeal and dismissed it on 23.06.2026.

Acts & Sections

  • Tamil Nadu Elementary Education Subordinate Service Rules: Rule 9
  • Fundamental Rules: Rules 22, 23
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