LexFOOD CORPORATION OF INDIA & ORS. versus BHARTIYA KHADYA NIGAM KARMCHARI SANGH & ANR.
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A 8 [2012] 1 S.C.R. 230 FOOD CORPORATION OF !NOIA & ORS. v. BHARTIYA KHADYA NIGAM KARMCHARI SANGH & ANR. (Civil Appeal No. 7268 of 2002) JANUARY 13, 2012 [D.K. JAIN AND ANIL R. DAVE, JJ.] CONSTITUTION OF IND/A, 1950: c Article 14 - Classification between two sets of employees - Grant of incentives only to the in-service employees of the · FCJ, who acquired professional qualifications after entering in service and denial of the same to those who had acquired the same professional qualifications before entering the service 0 - Reasonableness of classification - Held: The classification sought to be made by the FCJ between the two sets of employees bore a just and rational nexus to the object sought to be achieved by introducing the said incentive scheme - Judged from this point of view grant of the incentive in relation E to the in-service employees, in no way amounted to discrimination between the in-service employees and the employees recruited with higher qualification, offending either Articles 14 or 16 of the Constitution, particularly when the incentive was in the form of a special increment as 'personal pay' to be merged in pay at the time of promotion to the next F higher grade and thus, having no bearing on the inter-se seniority and/or to the future promotion to the next higher grade - Service Jaw. Article 226 - Scope of interference - Held: Courts should G interfere with the administrative decisions pertaining to pay fixation and pay parity only when they find such a decision to be unreasonable, unjust and prejudicial to a section of employees and taken in ignorance of material and relevant factors - Judicial review. H 230 FOOD CORPORATION OF INDIA v. BHARTIYA 231 KHADYA NIGAM KARMCHARI SANGH On 29th July, 1985, the FCI issued Circular No.40 of A 1985 introducing a scheme which provided for incentives to its employees on acquiring additional qualifications during their service in the FCI. The Circular provided for grant of two increments to employees in their respective pay scales on acquiring such professional degrees and B diplomas as were mentioned in the Circular. Subsequently, another Circular No. 72of1986, dated 14th November, 1986, was issued, extending the benefit of one special increment to in-service employees who acquire one year diploma course in any professional c subject as mentioned in the Circular. These circulars were complimented by Circular No. 58of1987, dated 24th August, 1987, which clarified that the increments shall only be in the form of a personal pay to an official till his promotion to the next higher grade, which shall be 0 subsequently absorbed in the basic pay at the time of pay fixation for the promoted post The Circular of 1985 was challenged on the ground that it resulted in discrimination between in-service employees acquiring additional qualification and the persons recruited by the E FCI already possessing the prescribed additional qualification. The High Court while allowing the intervention application of the respondent (Karamchari Sangh) allowed the petition and directed that the writ petitioner be granted two additional increments under the said Circular. F The Karamchari Sangh filed a writ petition before the High Court. The High Court held that the said Circular was discriminatory and violative of Article 14 of the Constitution and directed the FCI not to give effect to the G Circular and to withdraw any incentives, if already given to the employees in furtherance of the said Circular. The FCI and the Karamchari Sangh filed appeals challenging the order of the High Court. H 232 SUPREME COURT REPORTS [2012] 1 S.C.R. A The question which arose for consideration in these appeals was whether grant of incentives only to the in- service employees of the FCI, who acquired professional qualifications after entering in service and denial of the same to those who had acquired the same professional B qualifications before entering the service is invalid in law, being violative of Articles 14 and 16 of the Constitution. Allowing the appeal of FCI and dismissing the appeal of the Karamchari Sangh, the Court C HELD: 1. It is trite law that Article 14 of the Constitution, which enshrines the principle of equality, is of wide import. It guarantees equality before the law and equal protection of the laws within the territory of India. It implies right to equal treatment in similar D cir
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