Madras High Court Dismisses Writ Petition by Retired Employee Seeking Salary Arrears for Retrospective Promotion; Applies 'No Work, No Pay' Principle. Court Holds That Notional Pay Fixation Under Fundamental Rules Does Not Entitle Employee to Actual Salary for Period Not Worked.

High Court: Madras High Court Bench: Madurai In Favour of Prosecution
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Case Note & Summary

The dispute arose from the denial of salary arrears to a retired employee of the Co-operative Audit Department after she was granted retrospective promotion. The petitioner, S. Velammal, was appointed as a Typist in 1981 and promoted to Senior Inspector of Co-operative Societies in 1993. In 2002, a criminal case was registered against her and her husband under the Indian Penal Code, and disciplinary proceedings under Rule 17(B) of the Tamil Nadu Civil Services (Discipline & Appeal) Rules were initiated. Consequently, her name was excluded from the promotion panel for Co-operative Audit Officer in 2004. After a series of legal challenges, she was eventually promoted with retrospective effect from 01.10.2004, following her acquittal in the criminal case and the dropping of disciplinary charges. She retired on superannuation on 31.03.2014. She then sought salary and monetary benefits for the period from the deemed promotion date to her retirement. The respondent authority rejected her claim by an order dated 13.07.2018, holding that under Rule 27(17) of the Fundamental Rules of the Tamil Nadu Government, her pay was to be fixed only on a notional basis since she had never actually worked in the promotional post. Aggrieved, she filed the present writ petition seeking to quash that order and to direct payment of arrears with interest. The core legal issue was whether an employee who is granted retrospective promotion after exoneration from disciplinary and criminal proceedings is entitled to actual salary for the period of non-promotion despite not having worked in the higher post. The petitioner's counsel argued that the 'No Work, No Pay' rule should not apply because the charges were not proved, and that a government order with retrospective effect should carry all consequential benefits. The respondent contended that the denial of promotion was due to the petitioner's own circumstances and that service rules permitted only notional fixation. The Court examined the factual background and found that the petitioner had indeed not performed any duties in the promotional post. Relying on Rule 27(17) of the Fundamental Rules, it held that the rule specifically provides for notional fixation of pay in cases of deemed promotion without actual performance of duties. The Court rejected the petitioner's argument and upheld the impugned order, concluding that no interference was warranted. The writ petition was dismissed with no order as to costs.

Headnote

A) Service Law - Promotion - Retrospective Promotion - No Work, No Pay Principle - Fundamental Rules of the Tamil Nadu Government, Rule 27(17) - The petitioner, a Senior Inspector of Co-operative Societies, was denied promotion to Co-operative Audit Officer in 2004 due to a pending criminal case and disciplinary proceedings. After acquittal and exoneration, she was granted promotion with retrospective effect from 01.10.2004. However, she never performed duties in the promotional post. The Court held that under Rule 27(17) of the Fundamental Rules, she was entitled only to notional fixation of pay and increments, not actual salary arrears. The principle of 'No Work, No Pay' applied, and the impugned order rejecting her claim for salary for the period she did not work was upheld. The writ petition was dismissed. (Paras 7-10)

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Issue of Consideration

Whether the petitioner was entitled to salary and monetary benefits for the promotional post from the date of deemed promotion despite not having actually worked in that post, and whether Rule 27(17) of the Fundamental Rules barring such claim was applicable.

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Final Decision

Writ petition dismissed; no costs. The court held that since the petitioner did not actually perform duties in the promotional post, she is only entitled to notional fixation of pay and increments under Rule 27(17) and cannot claim actual salary arrears.

Law Points

  • Legal points not extracted
  • No Work
  • No Pay principle
  • notional pay fixation under Rule 27(17) of Fundamental Rules
  • promotion with retrospective effect from panel date
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Case Details

2025 LawText (MAD) (02) 255

W.P.(MD)No.1964 of 2019

2025-02-07

M.Jothiraman

Citation not available, 2025:MHC:467

V.Kannan, G.V.Vairam Santhosh

S.Velammal

The Joint Secretary to Government/Director of Co-Operative Audit, Chennai

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Nature of Litigation

Service matter - denial of salary arrears for retrospective promotion

Remedy Sought

Petitioner sought certiorarified mandamus to quash proceedings dated 13.07.2018 rejecting her claim for salary for promotional post from 12.08.2015 to 31.03.2014 and direct disbursement with interest.

Filing Reason

Non-payment of salary for the promotional post despite promotion being granted with retrospective effect.

Previous Decisions

Earlier writ petition W.P.(MD)No.6132 of 2018 allowed directing consideration of representation; impugned order passed rejecting claim.

Issues

Whether the petitioner is entitled to salary and monetary benefits for the period of non-promotion despite not having actually worked in the promotional post? Whether Rule 27(17) of the Fundamental Rules barring payment of actual salary for notional fixation is applicable?

Submissions/Arguments

Petitioner: No Work, No Pay not applicable as charges not proved and she was acquitted; once G.O. passed with retrospective effect, benefits including salary arrears should follow. Respondent: Petitioner not denied promotion; her name was not included in panel due to pending criminal case and disciplinary proceedings; overlooking promotion was due to her own actions; salary not paid as she did not work.

Ratio Decidendi

When an employee has not actually worked in a promotional post, despite being granted promotion with retrospective effect due to exoneration in disciplinary/criminal proceedings, the principle of 'No Work, No Pay' applies and the employee is entitled only to notional fixation of pay and increments under Fundamental Rules, not actual salary arrears.

Judgment Excerpts

As per Rule 27(17) of the Fundamental Rules, the pay of the petitioner was fixed notionally as that of immediate junior to the petitioner. Since the petitioner has not acted in the post but considered to be given deemed promotion, the petitioner cannot claim monetary benefits for the post in which, she has not performed her official duties. Therefore, the order impugned passed by the respondent does not warrant any interference.

Procedural History

Petitioner appointed as Typist in 1981, promoted to Junior Inspector (1989), Senior Inspector (1993). Criminal case registered in 2002. Charge memo under Rule 17(B) in 2003. Promotion panel 2004: name not included. Representation rejected in 2007. W.P.2606/2008 filed; court directed final order within two months. Assistant Director passed order on 20.06.2008 stating no evidence; criminal case ended in acquittal on 26.03.2014. Petitioner retired on 31.03.2014. Representation for inclusion in panel and promotion. Proposal sent, Joint Director ordered promotion with effect from 01.10.2004. Representations for arrears. W.P.6132/2018 directed consideration. Impugned order dated 13.07.2018 rejected claim, applied Rule 27(17) notional fixation. Present writ petition filed and dismissed on 07.02.2025.

Acts & Sections

  • Fundamental Rules of the Tamil Nadu Government: Rule 27(17)
  • Tamilnadu Civil Services (Discipline & Appeal) Rules: Rule 17(B)
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