STATE OF PUNJAB AND ORS. versus BHUPINDER SINGH AND ORS.
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A STA TE OF PUNJAB AND ORS. \'. BHUPINDER SINGH AND ORS. APRIL 2, 2004 B (V.N. KHARE, CJ., S.B. SINHA AND ~.H. KAPADIA, JJ.] Service law: I- l Revision in scale of pay consequent upon ace< ptance of recommendations c of the Pay Commission by the State Governn ent-Anomaly Committee recommending higher scales of pay for certain c11tegories of staff-Fixation of higher scale of pay-Effective date and payn•ent of arrears-Challenge to-Single Judge of the High Court directingflxati?n/payment with effect from the date of recommendation (l. /.1986) by the Pav Commission-On appeal, D Held: The State Government re-structured cadres i~ its departments by making amendments in the service regulations and recomn •ended revised higher scales of pay prospectively-Employees would be entit.'ed to revised scale of pay .. retrospectively with effect from 1.1.1986 notionally for the purpose of retiral benefits only and not for payment of arrears. E The main issue which arose for determin dion in this appeal was as to whether the revised scale of pay in respect of skilled and semi-skilled staff working in the Printing and Stationary department would be applicable with effect from 1.1.1986, on which date the State Pay Commission gave its report or with effect from 14.2.1989 on which date the State Government accepted the recommendations of the Pay F Commission for implementation. It was contended by the appellant-State that it had recommended restructuring of its departments and granted higher revised scale of pay to the respondent-employees prospectively wit~ effect from 14.2.1989 and G that power of fixation of revised scale and its ,,ffective date lies within the discretion of the Government. Respondents submitted that conseque 1t upon acceptance of the )!' • recommendations of the State Pay Commission, appellant-State wrongly placed them in the lower scale of pay; that the Anomaly Committee H 718 STATE v.BHUPINDER SINGH [KAPADIA . .I.] 719 -"' recommended higher scales of pay; and that since the anomaly was A accepted by the State Government, respondents/employees were entitled to the fixation of revised scales and payment of arrears due to revision in their pay scale with retrospective effect from t. 1.1986. Allowing the appeal, the Court B HELD: I. Keeping in mind the recommendations of the Punjab Pay Commission to rationalize recruitment, qualifications, designation and restructuring of the cadres by amendments to the service regulations, the Administrative Department of the State Government had made recommendations for restructuring certain departments of the State C Government and consequently, higher revised scales came to be granted to the employees prospectively. The respondents would be entitled to revised pay scales w.e.f. t.1.1986, notionally for calculation of retiral benefits but they will not be paid arrears of the difference in the pay scales from the date, claimed. 1721-B-D) Bhagirath Ram v. State of Punjab, (C.W.P.No.6778 of 1993) decided by Punjab & Haryana High Court on 26.7.1994, approved. Ram Murti and Ors. v. State of Punjab, decided by Punjab & Haryana High Court on 13.2.1996, held inapplicable. D E CIVIL APPELLATE JURISDICTION : Civil Appeal No. 4432 of 1999. From the Judgment and Order dated 11.2.1999 of the Punjab and Haryana High Court in L.P.A. No. 79 of 1999. H.S. Munjral and R.S. Suri for the Appellant. K.G. Bhagat and Debasis Misra for the Respondents. The Judgment of the Court was delivered by F KAPADIA, J. The short qu~stion which arises for determination in this G civil appeal is - whether the revised pay-scales of skilled and semi-skilled staff working in the Printing and Stationary department were applicable w .e.f. 1.1.1986 (when lllrd Punjab Pay Commission gave its report) or w.e.f. 14.2.1989 when the State Government issued its notification implementing the recommendations of the Pay Commission. H i 720 SUPREME COURT REPOR rs [2004] 3 S.C.R. A The facts lie within narrow compass. Respondents herein joined the .,.._ service as Assistants before 1978. Subsequently. they were promoted as Supervisors. On 1.1.1986, report was submitted by the lllrd Punjab Pay Commission which was accepted by the Government enacting Punjab Civil Service (Revised Pay) Rules under which the pay Jf supervisor was fixed in B the grade of Rs.1500-2540. Respondents made a representation pointing that a serious anomaly had arisen on a
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