State of U.P. and Ors. v. Dr. Om Prakash Singh
ARIJIT PASA Y AT, J. : Leave granted.
The State of U.P. calls in question legality of judgment rendered by a
Division Bench of the Allahabad High Court at Lucknow, by whi~h the High
Court affirmed the order passed by the State Public Service Tribunal,
Lucknow (in short the 'Tribunal').
Backgron!l.d facts necessary for disposal of the appeal are essentially a~
follows:
Respondent was appointed in the U.P. State Horticultural Produ~e,
Marketin~ and Processing Corporation Ltd. (in short the 'HORTICO'). The
said Corporation was closed w.e.f. 15.7.1990. At the time of closure,
respondent was drawing pay in the pay scale of Rs. 900~ 1770 and was
drawing a basic pay of Rs. 1060. On 26.4.1991 the Government issued an
order providing for appointment of retrenched employees of HORTICO on·
posts available for direct employment and which are outside the purview of
U.P. Public Service Commission (in short the 'Commission') as a
compassionate measure. The Government order dated 26.4.1991, inter alia,
provided that .the last pay drawn by the concerned employee of HORTICO
would be protected. Oh l.l 0.1991, respondent was given temporary
appointment and posted as Deputy Jailor in the U.P. Jail Services. He was
STATE v. O.P. SINGH [PASAYAT, J.] 57
placed in the pay scale of Rs. 1400-2300. By order dated 3.10.1997 the A
Government fixed pay of the respondent at Rs. 2250 in the pay scale of Rs.
1400-2300 with a view to protect his pay. On 16.3 .1998 the respondent made
a representation stating that he should be covered by the revised pay scale
of Rs. 2200-4000 w.e.f. l.1.1986 in HORTICO and pursuant to the decision
of the State Government his last pay should be protected in that scale. The B
representation was rejected by the State Government on 24.&.1999. It was
noted that the rev_ised pay scale was not adopted by the HORTICO. In any
event, HORTICO having been closed the question of accepting the prayer
of the respondent did not arise.
·Respondent filed a writ petition before the High Court which dismissed C
the same on the ground that there was an alternative remedy provided before
the Tribunal. A Claim Petition No. 586/2000 was filed by the respondent
before the Tribunal which held that the last pay protection would be in the
revised scale. The respondent was being given Rs. I 060 which was in the
corresponding pay scale of Rs. 515-860 and, therefore, illegal. It was held D
that the pay protection as envisaged by the Government order was not done.
The State of U.P. and its functionaries filed a writ petition before the High
Court which by the impugned order dismissed the same. It was, inter alia,
observed as follows:
"From the record, it is evident that the scale of Rs. 900- I 770 E
stood revised and respondent No.2 became entitled for the revision
of the pay scale with effect from 1.1.1986. His claim for the revision
of pay scale could not be defeated simply because actual revision
of pay scale was not done for couple of years and in the meantime
closure of the corporation was declared. It is not the case of the F
. petitioners that the pay revision or the revised pay scale could not
be given to the petitioner for want of funds for any other valid
reason, or that the said benefit of revision of pay scale was not given
to any other employee of the Hortico".
Learned counsel for the appellants submitted that when the revised G
pay scale was not adopted by HORTICO, the question of extending benefits
of the revised pay scale did not arise. The basic pay of Rs. 1060 as per the
pay scale operative at the time of closure of the Corporation was given to
the respondent. By a hypothetical conclusion the Tribunal came to hold that
the same was relatable to the revised pay scale of Rs. 515-860. The High H
58 SUPREME COURT REPORTS [2004) SUPP. 4 S.C.R.
Court's reasoning that closure of the Corporation was irrelevant cannot be
maintained in Jaw.
Per contra, learned counsel for the respondent submitted that the pay
protection in respect oflast pay drawn was assured by the Government. The
natural corollary is that when the pay scale was revised the same should have
been made applicable to the respondent and, therefore, the conclusions of the
Tribunal and the High Court do not suffer from any infirmity.
We find that both the Tribunal and the High Court have fallen in grave
error by overlooking the basic fact that at no point of time HORTICO had
adopted the revised scale of pay. Mere prescription of a revised scale of pay
is really of no consequence unless adopted by the concerned employer. In
the instant case as found by both the Tribunal and the High Court revised
scale of pay was not adopted by the time the Corporation was closed. That
being so, the claim of the respondent that he is entitled to the revised scale
of pay is clearly untenable. The Tribunal seems to have proceeded on the
basis that the basic pay of Rs. I 060 as was given to the respondent is relatable
to the revised scale of pay of Rs. 515-860. This is clearly erroneous. Unless ·''
the revised scale of pay was adopted the question of such presumptuous
conclusion is indefensible. The High Court's conclusion that mere closure
of the Corporation would not deprive the respondent of the revised scale of
pay is equally unsustainable. It has to be noted that the respondent's services
were terminated on the closure of HORTICO. He was given compassionate
appointment subsequently. When the Additional Inspector General (fail),
U.P., Lucknow brought to the notice of the U.P. administration about the
claim ofrespondent it was clearly indicated in reply that the revised pay scale
was not applicable to the Corporation and, therefore, the question of salary
fixation in the revised scale does not arise. It further appears from records
that the pay scale of Deputy Jailor was revised from 25.11.1994 and the same
was made Rs. 1400-2600. The respondent benefited from the fixation of pay
scale and his salary was fixed at Rs. 2420 w.e.f. 1.10.1995. In accordance
with the recommendations of the subsequent Pay Commission the pay scale
of Deputy Jailor stood revised to Rs. 5000-8000 w.e.f. 1.1.1996 and
consequently the pay of respondent was fixed at Rs. 7850 w.e.f. 1.1.1997.
The benefit of another pay enhancement w.e.f. 1.10.1998 was extended to
the respondent and his basic pay was fixed at Rs. 8000. The respondent has
thus been granted various benefits as available in law after his appointment
as Deputy Jailor in the Jail Department of the State.
\
STATE v. O.P. SINGH{PASAYAT, J.] 59
In the aforesaid background, the inevitable conclusion is that both the A
Tribunal and the High Court had not considered the controversy in the proper
perspective and their conclusions cannot be sustained. The orders of the
Tribunal and the High Court are set aside. The appeal is allowed with no order
as to costs.
B.B.B. Appeal allowed. B~