Case Note & Summary
The case involved a dispute regarding the pay structure of employees promoted under the Assured Career Progression Scheme (ACP Scheme) by the Union of India. The respondents, originally appointed as Lower Division Clerks in 1973, were promoted to Upper Division Clerks and later to Superintendents of Central Excise and Customs. They contended that their juniors, who were granted upgradation under the ACP Scheme, were drawing higher salaries, leading to a pay anomaly. After their applications were rejected by the Central Administrative Tribunal, the respondents approached the High Court, which ruled in their favor, directing the Union of India to step up their pay. The Union of India appealed against this decision, arguing that the High Court failed to appreciate the ACP Scheme's purpose and that the respondents were already promoted, thus ineligible for stepping up. The Supreme Court, however, found that the High Court correctly identified the issue as one of pay anomaly and that the stepping up was warranted under Fundamental Rule 22, which allows for such adjustments to ensure that senior employees are not disadvantaged compared to their juniors. The Supreme Court dismissed the appeals, agreeing with the High Court's reasoning and direction.
Headnote
A) Administrative Law - Pay Anomaly - Stepping Up of Pay - Fundamental Rule 22 - The High Court directed stepping up of pay for senior employees who were drawing lesser pay than their juniors due to an anomaly created by the Assured Career Progression Scheme. The court held that the stepping up was justified to remove the pay disparity between seniors and juniors in identical posts (Paras 5-6).
Issue of Consideration
Whether the High Court correctly directed the stepping up of pay for the original writ petitioners under the Assured Career Progression Scheme.
Final Decision
The Supreme Court dismissed the appeals filed by the Union of India, affirming the High Court's order to step up the pay of the original writ petitioners to eliminate the pay anomaly.
Law Points
- pay anomaly
- stepping up of pay
- Assured Career Progression Scheme
- FR 22
- promotion


