Case Note & Summary
The dispute arose from a challenge by a government servant against the scale of dearness allowance fixed by the Government of Central Provinces and Berar (now Madhya Pradesh) in 1948. The petitioner contended that the scale was discriminatory as it provided different rates for salaries above and below Rs. 400, violating his fundamental right to equality under Article 14 of the Constitution. The State Government argued that the grant of dearness allowance was discretionary and not justiciable. The High Court initially ruled in favor of the petitioner, stating that the differentiation lacked a reasonable basis. The Supreme Court, however, reversed this decision, emphasizing that under Rule 44 of the Fundamental Rules, the local government had the discretion to grant dearness allowance and that no right was conferred upon the government servants to compel such a grant. The court distinguished the case from precedents that involved recovery of salary arrears, asserting that the claim for dearness allowance was a matter of grace rather than a right. The court concluded that the scale of dearness allowance was not discriminatory and upheld the State Government's resolution, dismissing the petition without costs.
Headnote
A) Constitutional Law - Discrimination in Allowances - Applicability of Article 14 - Constitution of India, 1950, Article 14 - The court held that the scale of dearness allowance fixed by the State Government is not discriminatory as it is a matter of discretion and does not impose a duty on the State to grant it. The court found that the differentiation in the scales was based on different financial considerations and did not violate the principle of equality (Paras 1-2).
Issue of Consideration
Whether the scale of dearness allowance fixed by the State Government is discriminatory under Article 14 of the Constitution.
Final Decision
The Supreme Court allowed the appeal, dismissed the petition, and held that the scale of dearness allowance was not discriminatory under Article 14.
Law Points
- discretionary power
- dearness allowance
- Article 14
- justiciability
- Fundamental Rules
