RAJASTHAN AGRICULTURAL UNIVERSITY, BIKANER versus MITHA LAL KOTHARI AND ANR.

Citation: [1999] SUPP. 1 S.C.R. 676 · Decided: 24-08-1999 · Supreme Court of India · Bench: SUJATA V. MANOHAR · Disposal: Appeal(s) allowed

Judgment (excerpt)

A 
RAJASTHAN AGRICULTURAL UNIVERSITY, BIKANER 
B 
v. 
MITHA LAL KOTHARI AND ANR. 
! 
AUGUST 24, 1999 
[SUJATA V. MANOHAR AND A.P. MISRA, JJ.] 
Service Law: 
Pay-fixation-Government directing transfer of some of its employees to 
C University-Basic pay of such employees protected-Subsequently, both 
government and University pay scales revised-Criteria of revision of pay 
scales different-University passing order bringing about equivalence between 
the two pay scales by calculating basic pay under both the scales on a 
common basis-University Order challenged by such government employees-
D Held, the University Order is valid and its only purpose is to exclude a 
double benefit of dearness allowance to the government employees. 
~ 
. State of Rajasthan issued ~n order dated 27.12.1975 under which 
employees of the research wing of the Directorate of Agriculture were 
transferred to the University of Udaipur, the successor of which is the · 
E Appellant, Pending final absorption in the University, the employees were to 
be on deputation to the University but no deputation allowance was to be paid. 
The rights of the transferred employees were governed by the said order. 
The basic pay drawn under the Government scale was protected under the 
University scales by the said order. The respondents were transferred and 
they chose to retain their pay and the scale of pay under the Governme~t. 
F 
The pay scales of Government servants were revised with effect fr~m 
1.9.1976 when the Rajasthan Civil Services (Revised New Scale) Rules, 
1976 came into effect under which the dearness allowance; etc. as admissible 
on 1.9.1976 was merged and treated as part of the basic pay for the purpose 
of fixation of pay in the revised new pay scales. The respondents' pay was 
G accordingly revised. Similarly, the pay scales in the University were also 
revised with effect from 1.9.1976 when the new University Grants Commission 
scales of pay came into operation under which the basic pay fixed was 
inclusive of dearness allowance, etc. as on 31.12.1972. Respondents were 
absorbed in the University with effect from 1.4.1977. 
H 
676 
, 
\ 
RAJAS THAN AGRICULTURAL UNI. v. M.L. KOTHARI 
677 
The Government ofRajasthan issued a memorandum dated. 21.2.1979 A 
relating to the fixation of pay of Government servants on appointment as 
teachers in the colleges/universities located in Rajasthan in the new UGC 
pay scales which prescribed the exclusion from the calculation of basic pay 
of such Government servants the amount of dearness allowances drawn by 
Government servants between 1.1.1973 and 1.9.1976 for fixing the pay with B 
reference to which such Government employees pay shall be fixed in the 
revised UGC pay scale. In accordance with the Government Memorandum, 
the University passed order dated 28.7.1980 which was brought into effect 
from 1.9.1976. 
Respondents filed writ petition in the High Court challenging the C 
University order dated.28.7.1980 and contended that their new UGC pay 
scales should be fixed on the basis of the consolidated basic pay that they 
were getting under tJ:te revised new pay scales of the Government. Single 
. Judge dismissed the Writ Petition. Against the Order of the Single Judge, 
the respondents preferred appeal which was allowed by a Division Bench of 
the High Court. Division Bench held that the respondents were entitled to D 
the protection of their pay under the new Government scales, the element of 
dearness allowance which has merged in the basic pay upto 1.9.1976 should 
not be deducted, and the fitment in the new UGC scales should be on the basis 
of the pay as drawn under the new Government scales. Aggrieved by judgment 
of the Division Bench, the appellants have filed the present appeal. 
Allowing the appeal, the Court 
HELD: 1. At the time when the order dated, 27.12.1975, was issued, 
neither the revised Government scales of pay nor the new UGC scales of pay 
E 
had come into effect. The basic pay drawn under the Government scale was F 
to be protected under the University scales by the Order dated 27.12.1975. 
The problem in the present case arises on account of the merger of dearness 
allowances in the basic scale of pay of the Government employees with effect 
from 1.9.1976. The new UGC pay scales had merged only the dearness 
allowances with basic pay upto 1.3.1973. There was thus a period between 
1973 and 1976 when under the UGC scales of pay additional dearness G 
allowance was payable and

Excerpt shown. Read the full judgment & AI analysis in Lexace.