UNION OF INDIA AND ORS. versus SECRETARY, MADRAS CIVIL AUDIT & ACCOUNTS ASSOCIATION AND ANR. ETC.

Citation: [1992] 1 S.C.R. 530 · Decided: 04-02-1992 · Supreme Court of India · Bench: L.M. SHARMA · Disposal: Appeal(s) allowed

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Judgment (excerpt)

A. 
B 
UNION OF INDIA-AND ORS. 
v. 
SECRETARY, MADRAS CIVIL AUDIT & ACCOUNTS 
ASSOCIATION AND ANR. ETC. 
FEBRUARY 4, 1992 
[LALIT MOHAN SHARMA AND-K. JAYACHANDRA REDDY, JJ.} 
Constitution of India, 195o-Articles 14, 16-Personnel of Audit Wing 
and Accounts Win~e~ommendlltion of 4th Central Pay Commis-
l 
C -sian-Separate dates for implementation-Legality of-Principle of equal pay 
. ~ 
D 
E 
for equal work whether attracted. 
Constitution of India, 195(}-Articles 14, 16-Equality before law-
Meaning-Civil Service--Classifying persons by State-Legality. 
The Bangalore Bench of Central Administrative Tribunal held that 
the employees belonging to-the Accounts Wing of Indian Audit and Ac· 
t=ounts Department were entitled to the benefit under Office Memo dated 
U.6.87 issued by the Government of India, Ministry of Finance, Depart· 
ment of Expenditure with eft'ect from 1.1.86. 
Subsequently, s.ome of the employees of the Accounts Wing in the 
Tamil Nad~ filed petitions before the Madras Bench of the CAT, claiming 
that they also should be given the benefit with effect from 1.1.86. 
J'he Madras Bench did not agree with . the view taken by the Ban-
F 
galore Bench and the matter was referred to the Chainnan of the CAT and 
a Full Bench was constituted. 
The Full Bench answered the reference agreeing with the view taken 
by the Bangalore Bench. 
G 
The appeals, befor~ this Court, were filed against several orders 
passed by the Madras Bench as well as the Bangalore Bench of the CAT. 
The appellants contended that the omce Memo dated 12.6.87 was 
based on the recommendations of the Fourth Central Pay Commi1s~on 
which consisted of two parts. The 6rst part recommended corresponding 
H scales of pay for the existing posts in the Accounts Wing giving effect from 
530 
U.O.I. v. SECRETARY 
531 
1.1.86. The other part was contained in para ·11.38. Pursuant to those .A 
reeommendations the Government d~ided to implement the same with 
etTert from 1.4.87; that the Full Bench failed to appreciate co~ly the 
second part of the recommendation of the Pay Commission, which indi-
cated that the number of posts to be placed in these scales were to be 
identified by the Government and the- Government could therefore decide B· 
and then gh·e efl'~t at a later date. _ 
- The respondents ..employees contended that · the Pay Commission 
recommended that there should be parity in the pay scales ·of the staff in 
the I.A. & A.D. and other Accounts Organisations and since. all of them 
discharged similar duties· the .,enefit should be extended to all of them · C 
uniformly with effect from 1.1.86; that the persons allocated to the Ac-
counts Wing, who possessed similar qualifications before and after entry 
into the Department, were perfonning duties of s~~e nature, as those 
allocated to the Audit Wing, and allowing them lower scales of pay than 
· those allowed to the Audit Wing was violative ·Of Artjcles 14 and 16 of the 
Constitution; that since all of them did the .same work, they should be D 
treated alike and the principle of equal pay for equal work was very much 
attracted; and that the recommendations of the Pay Commission should 
be accepted .as a whol~ in respect of all the categories of employees. 
On the question, "whether the benefit under Office Memo dated 12th E 
June, 1987 issued by the Go~emment of India, Ministry of Fi.nance, 
Department of Expenditure should be extended to the members of the 
Accounts Wing of the Indian Audit and Accounts Department, with effect 
from 1.1.~6, as in the case of Audit Wing, or whether it should be from 
1.4.87 as indicated in the Office Memo?" Allowing the appeals of the Union 
of India, this Court, 
F 
HELD : 1.01. The Pay Commision Report iodicated _that after bifur-
cation, certain posts in the Accounts Wing should be declared to be 
. brought into the functional grades and thereafter the higher scales of pay 
should be·paid to the officers fitted in such grades. [S41E-F] 
1.02. For that purpose necessary rules have to be framed prescribing 
the eligibility etc. and the senior Accountants who have completed three 
years' regular service in ~he grade are upgraded to the post of Asstt. 
Accounts Officer. It is evident that all this could have been done only in 
G 
the year 1987 and in the organised Accounts Office higher sc:ales of pay H 
532 
SUPREME COURT REPORTS 
(1992}1 S.C.R. 
A were given with effect from 1.4.87 i.e. from the beginning of the financial 
year. [540G-H] 
B 
1.03. The respo

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