Union of India and Anr. v. R. Sarangapani and Ors. Etc. Etc.
G Delay condoned.
Leave granted in S.L.P. (C) 346/99.
In these batch of appeals, the Union of India and the concerned
Department are the appellants. The appeals raise common points. For the
H sake of convenience We shall take up Civil Appeal Nos. 4247-49/1988,
r
U:O.I. v. R. SARANGAPANI 499
. which are the appeals against the Judgment dated 8th March, 1995, of the A•
Central Administrative Tribunal, Bangalore Bench, in O.A. Nos. 1981/1994
& 1981-82 of 1994. Earlier to this, the said Tribunal rendered a Judgment
in O.A. No. 156 of 1992 on 26th March, 1993, taking the same view. The
Tribunal had held that Technicians appointed prior to 1.1.1986 would also
be entitled to the benefits of the orders passed in terms of the O.M. date<:f B
22.10.1990, as modified in the subsequent orders dated 31.3.1992. In
essence, the Tribunal held that for purpose of drawing increments, the
Technicians whose period of training was one year, should be on par with
the non-technical persons, whose training period was only three months, so
that both the technicians and non-technicians would be drawing the same
increment at the same intervals, if they were appointed on the same date. c
As per the Government O.M. dt. 22.10.90 this benefit was given to the
technicians and was prospective in operation. It was to be granted only from
1.1.1990. Later on, by the O.M. dated 31.3.1992, this benefit was extended
notionally with effect from 1.1.1986. The result was that those technicians D
who were appointed prior to 1.1.1986 did not get the benefit of these two
O.Ms. issued by the Government. When they approached the Central Admin
istrative Tribunal, Bangalore Bench, the said Tribunal in its two judgments,
one of 1993 and the other of 1995 above mentioned, came to the conclusion
that those technicians appointed prior to 1.1.1986 would also get the benefit
of these two O.Ms. This was on the ground that fixation of the date of E
increment, i.e. 1.1.86 was discriminatory.
It appears that the Central Administrative Tribunal, Madras Bench had
taken an opposite view and this led to a Reference to. a Full Bench of the same
Tribunal, at Madras in 0.A. Nos. 1295/94 and 79/95. The judgment therein
was delivered on 22.1.1996 and in that judgment the view taken by the
Bangalore Bench of the Tribunal was overruled and the view taken by the
Madras Bench of the Tribunal was upheld. The Union of India, therefore, in
its appeals filed in this Court against the judgment of the Bangalore Tribunal,
has strongly relied upon the subsequent judgment of the Full Bench of the
Madras Tribunal, dated 22.1.1996 above referred to, for contending that the
view traken by the Full Bench is the correct one and therefore, for the reasons
given in that judgment, these appeals must be allowed and the judgment of the
Bangalore Tribunal dated 21.2.95 must be set aside.
In the Government O.M. dated 22.10.1990, it was stated that, under FR
26, service in a post on a time scale counts for increment in that time scale H
and that as per FR 9(6)(a)(i), the services as a probationer or apprentice was
treated as duty provided that service as such was followed by confirmation.
On that basis, the Government of India observed that training period under
gone by the government servant "cannot" be treated as duty. However, on a
demand made by the Staff in the National Council, (JCM) it was decided that
where training period was long enough as in these cases, such technical
personnel were put to perpetual disadvantage vis-a-vis the staff in non
technical job who were recruited along with the technical staff in the same
scale of pay. Therefore, the Government decided as follows :
the National Council (JCM) and it has been decided that in case where
a person has been acted for regular appointment and before formally
take over charge of the post in which selected person is required to
undergo training, training period undergone by the Government
servant whether on remuneration of stipend or otherwise may be
treated at par for the purpose of drawing emoluments.
These orders take effect from the 1st of the month in which this
OM is issued".
It will be noticed that initially the benefit of the above O.M. was
therefore, given only from 1.10.1990. Subsequently, further representations
appears to have been made by the staff and the Government came forward
with the amendment on 31.3.1992. The Government of India observed that it
had earlier decided on 22.10.90 that the period spent on training was to be
treated as duty for the purpose of increments in cases where the person
selected for regular appointment, - before formally taking over charge of the
post for which he was selected - was required to undergo training and these
orders were to take effect from 1.10.90. On further demand of the staff in the
National Council (JCM) the question was again examined and the President
of India, it. was stated was pleased to decide that the benefit of treatment of
such training as duty for the purpose of increments would be allowed also in
the case of those Government servants who had undergone such training on
or after 1.1.1986. However, in such cases, the benefit of counting the period
for pay would be admissible on notional basis from 1.1.86 and on actual basis
from 1.10.90.
Subsequently, it appears that some further anomaly arose in regard to
those who completed training immediately before 1.1.86, and an order was
passed by the Government of India on 29.1.93. But we are not concerned with
U.0.1. v. R. SARANGAPANI
that order~ in the present batch of cases.
501
The Full Bench of the Central Administrative Tribunal, Madras had
therefore to decide the question whether the benefit given as per the
Government O.M. dated 31.3.1992 should also be extended to those appoint
ees who were appointed to technical posts and who underwent a training
before 1.1.86. The Tribunal, after referring the various judgments of this
Court came to the conclusion that the date 1.1.86 had a nexus with the
commencement of the recommendations of the Fourth Pay Commission and
that that was a relevant factor to be taken into consideration in finding out
whether the cut-off date 1.1.86 was arbitrary or not. The second relevant
aspect that was taken into account was the extent of financial burden which
was involved if the benefit mentioned above was to be extended even to
those who had training prior to 1.1.86. It was true that the claim of those
appointed prior to 1.1.86 was only that they could be given notional benefit
form 1.1.86 and actually from a later date. But even so, the net result would
be that one more increment would become payable to all those persons
appointed to technical posts earlier to 1.1.86. It was, therefore, held that these
factors were relevant circumstances to be taken into consideration for not
extending the benefit backward beyond 1.1.86. The Tribunal also considered
the question whether the cut-off date 1.1.86 could be held to be properly
selected or whether it could be said that it was picked out of a hat. It was
pointed out that the question of commencement of the date was discussed
in the National Council (JCM) between the employees and the Government
and after taking into account various demands made by the employees, the
said date was arrived at. At first the decision was to give notional benefit
only from 1.10.90 and lateron, the decision was to grant it to those who had
undergone training after 1.1.86 but that they would get the benefit notionally
from 1.1.90. The Tribunal relied upon a judgment of this Court in Union of
India v. P.N. Menon & Ors., [1994] 4 SCC 68, for holding that financial
burden was one of the relevant considerations. On the basis of the above
reasoning, the Full Bench of the Madras Tribunal finally stated that the order
of the Government deciding the cut off date as implementing the Govern
ment O.M. dated 31.3.92 and the O.M. dated 22.10.90 was entirely valid and
that that the applicants were not entitled to the reliefs and that the earlier
judgment of the Bangalore Tribunal was not correct.
We are of the view that the learned counsel for the Government of
India was right in relying strongly upon subsequent decision of the Full Bench
A · of the Central Administrative Tribunal Madras Bench dated 22.1.1996 and in
our opinion, the reasons given by the said Tribunal in the said Judgment, are
correct.
One more aspect which we want to emphasise is that the applicants who
were appointed to the technical posts and the other persons who were
appointed to the non-technical posts are not on the s,ame footing. The nature
of their jobs was different, the qualifications for appointment was different
and the training period was to be longer for the technical staff. It was
obviously necessary that those who were to occupy the technical posts should
have a longer period of training than those who were to occupy the non
technical posts. The training period for the former was one year while the
training period for the latter was only three months. Naturally, the non
technical personnel could therefore be appointed earlier to the technical
personnel even if both groups were selected at the same selection. Therefore,
in view of the nature of the qualifications and nature of the posts and functions
and duties, no equality in the dates of accrual of the increments could ever
have been claimed by the technical personnel comparing themselves to the
non-technical persons, by invoking Article 14.
If, however, the Government thought it fit to bring some sort of
equalisation, in the matter of commencement of their increments, it was
obviously by way of a sheer concession and was not as a matter of right nor
was it to avoid any violation of any principles of equality under Article 14.
In fact, the very Official Memorandum of the Government dated 22.10.1990,
stated that under the FR 26 read with Rule 9(6)(a)(i) it was only in cases of
probationers and apprentices where such appointments were followed by a
confirmation that the said period of probation or apprenticeship would be
counted -for the purpose of scale of pay attached to the posts. This principle
would "not" as per the Rules be applicable to the training period. However,
during the meetings of the National Council (ICM) it was represented that
where the training period was long, as in the case of technical personnel, the
disparity would become perpetual. Therefore, it is obvious that the conces
sion was n0t based on Article 14 nor was it on the basis of any rule but was
clearly based only upon the fact that the training period of technical
personnel was longer and the disparity woiuld continue perpetually if these
groups were selected at the same time. Therefore Government considered
initially to bring their increment on par with effect from 1.1.90 and later on
it felt that the grievance could be rectified with effect from 1.1.86 as
t
U.0.1. l( R. SARANGAPANI 503
mentioned above, the date of commencement of the recommendations of the
4th Pay Commission. It is therefore, clear that the Government decided to
extend the benefit in the above said manner, even though parties had no right
to the same either under Article 14 or under the Rules and the date was
mainly based on the financial burden. It was open to the Government to
decide, having regard to the budgetary provision, as to what extent it could
go and whether it could fix a cut-off date which was co-terminus with the
commencement of the recommendation of the IVth Pay Commission,
namely, 1.1.86. On the peculiar facts of this case the said date was perfectly
valid because the only consideration was the financial burden of the State
and not any principle of equality.
None of the principles stated in D.S. Nakara v. Union of India, [1983]
2 SCR 1_65 are applicable to the. facts of the case. The difference arose in
the present case because the two categories were totally different from the
time when they were selected and sent for training. We are, therefore, of the
view that the Full Bench decision of the Central Administrative Tribunal,
Madras was justified in overruling the said decision.
For the aforesaid reasons, these appeals are allowed and the impugned
order passed by the Central Administrative Tribunal, Bangalore Bench is set
aside.
C.A. No. 2583-8512000 @ S.L.P. (C) Nos. 15119-2111998
Delay condoned.
Leave granted. These S.L.Ps. arise from Judgment dated 15.11.1985 of
the Central Administrative Tribunal Jabalpur Bench. Similarly CA 4328/98 F
and C.A. 4446-47/98, arise from Punjab. These Tribunals followed the
judgment of the Bangalore Trib1:1nal and granted benefit of the increment to
the technical personnel recruited priod prior to 1.1. 86. It also appears from
what is stated in the judgments, that the counsel for the Government in those
cases agreed before the Tribunals that the judgment of the· Bangalore
Tribunal would apply.
Here, we are concerned with a class of persons who are spread over
the entire country in the same department but the different cases were
disposed of by different Benches of Central Administrative Tribunal leading
to conflicting decisions. We are of the view that uniformity has to be
504 SUPREME COURT REPORTS (2000] 2 S.C.R.
A maintained in respect of grant of increments to all these technical persons
who belong to the same Department, though they are working in different
parts of the country. Obviously, the counsel for the Government had agreed
before the these two Tribunals at Jabalpur and Chandigargh Bench because
at that time the Bangalore Bench judgment was holding the field. But after
B the judgment of the Full Bench of the CAT, Madras it is necessary that there
is no _discrimination between the technical personnel in different regions of
the country in the same department. We are of the view that it is a case where
uniformity has to be maintained in the Department in spite of the concession
of counsel at Jabalpur and Chandigarh. Therefore, the principles decided by
c the Full Bench of the Madras Tribunal has to be applied even in respect of
employees who went before the Tribunals at Jabalpur and Chandigarh.
Learned counsel appearing in these cases arising from the Jabalpur and
Chandigarh Bench of the Tribunal, made vehement submissions before us,
as to why the judgment of the Full Bench of the Madras Tribunal should not
D be accepted. Counsel contended that even in respect of those appointed prior
to 1.1.86 in the technical branch, the benefit could be given at least from
1.1.86. Counsel also pointed out that once the Government felt-apart from
Article 14 and the FR-that the benefit could be extended to those appointed
between 1.1.86 and 1.1.90, such benefit should have been extended even to
E those appointed earlier to 1.1.86. Otherwise, there would be anomaly
between the technical personnel appointed prior to 1.1.86 and those who
were appointed after 1.1.86. They would be drawing increments unevenly.
For the reasons which we have already given while disposing of the
appeals of the Union of India against the judgment of the · Bangalore
Tribunal, these contentions are liable to be rejected. We have mentioned
earlier that the categories being different from the very start, no principle of
Article 14 applied. The parties not being probationers-or apprentices, the FRs
will not apply. It was only on the basis of the fact that the anomaly would
be running perpetually between technical and non-technical personnel se-
G lected at the same time by the Government that the Government extended
the benefit of one increment upto 1.1.86. While granting such concession it
was open to the Government, as already stated to take irito accou(lt the
financial burden of the Government. Further, the date has been made co
terminus with the commencement of the recommendations of the Fourth Pay
H Commission with effect from 1.1.86. We do not find any anomaly or
r
U.0.1. v. R. SARANGAPANI 505
anything legally wrong in limiting the benefit to those who had undergone
training after 1.1.86 and giving benefit notionally from 1.2.90. Further in
regard to those appointed prior to 1.1.86, it would be too late for them to
claim the benefit of the training period prior to 1.1.86.
For the aforesaid reasons, the appeals of the Union of India against the
Jabalpur and Chandigarh Bench judgments are allowed.
It appears in some of the cases, particularly in the case from the
Central Administrative Tribunal, Jabalpur and Chandigarh and perhaps some
other places, the benefit granted by the Tribunals, which we are now setting
aside has been granted to the technical persons pending these appeals in this C
Court.
Learned counsel who appeared before us in the Jabalpur matters placed
before us a letter dated 20th June, 1996 which clearly stated that the
implementation of the judgment of the Tribunal at Jabalpur would be subject
to the result of any appeals that might be filed by the Union of India. Even D
in other cases, the position in our opinion would be the same, whether such
a letter was issued or not.
We, therefore direct that the· extra increment· given pursuant to any
judgment of the Tribunal which has now been set aside, be recovered by the
Union of India. It would be open to _the Government of India to recover the E
same or to absorb the same in the future monthly salary spread over, month
by month.
But there is one exception to this direction for recovery. In case where
any of these employees of the technical branch have received the benefit of
the increment because of the judgment which we have now set aside, in case
they have retired as of today, no recovery will be made from their retiral
benefits on the basis of the judgment which we have pronounced today.
The appeals are disposed of in the manner mentioned above. There
shall be no order as to costs.
R.P. Appeals disposed of.