K. BALARAMAN versus CHAIRMAN, RAILWAY BOARD AND ORS.

Citation: [2010] 14 S.C.R. 1043 · Decided: 14-12-2010 · Supreme Court of India · Bench: DALVEER BHANDARI · Disposal: Dismissed

Judgment (excerpt)

[2010] 14 (ADDL.) S.C.R. 1043 
K. BALARAMAN 
v. 
CHAIRMAN, RAILWAY BOARD AND ORS. 
(Civil Appeal No.6647 of 2003) 
DECEMBER 14, 2010 
[DALVEER BHANDARI AND DEEPAK VERMA, JJ.) 
A 
B 
Service Law: Increments ..., Non-inclusion of, in the basic 
pay - Promotion and confirmation to the rank of Stock 
Verifiers in Railways - Stock Verifiers given incentives on 
C 
passing the prescribed examination - Appellant passed such 
examination and given three increments -
Held: The 
additional increments cannot be treated a part of the basic 
pay but only as a separate element which will not count for 
the purpose of calculating DA etc. 
D . 
The Stock Verifiers in the Railways were given 
incentives on passing the prescribed examination. The 
appellant passed such examination and was also given 
three advance increments. The respondent-Board in its 
E 
communication dated 25.07 .1995 categorically stated that 
three advance increments granted to the Stock Verifiers 
for passing the examination may be treated as additional 
increment and cannot be treated as part of the basic pay. 
Another communication was issued on 08.05.1996 
wherein it was ordered that additional increment will not 
be treated as part of basic pay and will not be reckoned 
F 
for calculating the Dearness Allowance. Against the said 
communication, the appellant filed original application 
before the Tribunal. The Tribunal held that the additional 
increment will be forming part of the basic pay of the 
G 
individual and the appellant would be entitled to the 
consequential benefits. The High Court, however, held 
that the increments cannot be treated as part of the basic 
1043 
H 
1044 SUPREME COURT REPORTS [2010] 14 (ADDL.) S.C.R. 
P. 
pay, but only as a separate. element which will not count 
for the purpose of calculating the D.A. etc .. The instant 
appeal was filed challenging the order of the High Court. 
B 
c 
D 
E 
Dismissing the appeal, the Court 
HELD: The Tribunal erroneously held that three 
additional increments will form part of the basic pay. The 
High Court was fully justified in setting aside the 
judgment of the Tribunal. [Para 9] [1047-C-D] 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 
6647 of 2003. · 
From the Judgment and Order dated 23.04.2002 of the 
High Court of Judicature at Madras in Writ Petition No. 4956 
of 1999. 
A.T.M. Sampath and T.S. Shanti for the Appellant. 
A. Mariarputham, Ch. Shamsuddin Khan and A.K. Sharma 
(for Anil Katiyar) for the Respondents. 
The Judgment of the Court was delivered by 
DALVEER BHANDARI, J. 1. This appeal is directed 
against the judgment of the Division Bench of the High Court 
of Judicature at Madras dated 23rd April, 2002 in Writ Petition 
F No.4956 of 1999 along with other connected petitions. 
· 
2. Bn~f facts which are necessary to dispose of this appeal 
are as under : 
3. The appellant was working in Class 'C' with the 
G respondent no.1 - Railway Board. The post of Stock Verifiers 
in the railways are to be filled from the category of Clerks 
Grade I, Selection Grade Clerks and Sub-heads from Class 'C'. 
Reply filed by the Railway Board before the Centtal 
H 
K. BALARAMAN v. CHAIRMAN, RAILWAY BOARD 1045 
AND ORS. [DALVEER BHANDARI, J.] 
Administrative Tribunal, Madras Bench while dealing with the 
A 
"Promotion to and confirmation to the rank of Stock Verifiers" 
mentioned as under : 
"(1) Promotion of persons holding substantively posts of 
. Clerks in the offices of the Financial Adviser and Chief · 8 
Accounts Officers to the rank of Stock Verifiers will be on 
considerations on seniority and merit including fitness for 
outdoor work. In the case of Accounts Clerks promotion 
to the rank of Stock Verifiers will not be made unless they 
have passed the examination prescribed in Appendix-2. 
C 
The condition of passing the examination prescribed in 
Appendix 2 by Accounts Clerks before they can be 
promoted to the rank of Stock Verifiers, may be relaxed, 
in special cases, under the sanction of the General 
Manager. 
D 
(6) No increments will be allowed to a Stock Verifier under 
he has passed the qualifying examination and failure at two 
consecutive examinations will entail reversion to his 
E 
substantive post."(emphasis added). 
4. The Fifth Pay Commission in reference to Stock 
Verifiers in para 83:243, has recommended as follows : 
" ..... It may not be possible to recommend pay scale 
F 
higher than that of Accounts Assistants (i.e. Rs.1600-2660) 
for Stock Verifiers. The selecti

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