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Smart Summary

Factual and Procedural Background

These appeals arose from judgments/orders of a High Court which had held that the respondents—doctors serving under the Government of Punjab—were entitled to have their ad hoc service period included when calculating eligibility for a higher pay scale under a “proficiency step-up scheme” (based on completing 8 or 18 years of service). The Supreme Court granted leave in two Special Leave Petitions (Nos. 1561 of 1998 and 5626 of 1999) and heard counsel for both sides.

The Court examined, inter alia, Circular Letter No. 4-15-81 IPP/16047 dated 14-12-1981, and the Punjab Civil Medical Services Class II (Recruitment and Conditions of Service) Rules, 1943, which (as stated in the opinion) governed the respondents at the time of their appointment, including their ad hoc appointments.

Legal Issues Presented

  1. Whether the period of ad hoc service rendered by the respondents must be included for calculating completion of 8 or 18 years of service for grant of a higher pay scale under the proficiency step-up scheme.

Arguments of the Parties

Respondents' Arguments

  • The respondents contended that, as doctors under the State of Punjab, they were governed by rules and circulars different from those considered in the earlier Supreme Court decision, and therefore the ratio of that decision would not apply to their cases.
  • Reliance was placed on Circular Letter No. 4-15-81 IPP/16047 dated 14-12-1981, which (on the Court’s reading) was based on a Punjab and Haryana High Court view that ad hoc service should be taken into account for the relevant purpose.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
State of Haryana v. Haryana Veterinary & AHTS Assn (2000) 8 SCC 4 For calculating 8/18 years’ service required for grant of a higher pay scale, and for determination of seniority, only regular service is to be counted, not ad hoc service. The Court held that the ratio applied to the present cases, rendering the High Court’s inclusion of ad hoc service “unsustainable,” and required the High Court’s judgments/orders to be vacated/set aside.

Court's Reasoning and Analysis

The Court identified the “main question” as whether ad hoc service could be included for meeting the 8/18-year service requirement for the higher pay scale under the proficiency step-up scheme. It noted that this question had already been considered by a three-Judge Bench in State of Haryana v. Haryana Veterinary & AHTS Assn (2000) 8 SCC 4, which held that only regular service counts (and not ad hoc service) for higher pay-scale eligibility and for seniority determination.

Addressing the respondents’ attempt to distinguish that precedent based on different governing rules/circulars in Punjab, the Court reviewed Circular Letter No. 4-15-81 IPP/16047 dated 14-12-1981. On a plain reading, the Court found the circular’s instructions to be founded upon a Punjab and Haryana High Court view that ad hoc service should be counted. The Court concluded that the circular could “no longer form the basis” of the respondents’ contention in light of the later Supreme Court decision in State of Haryana v. Haryana Veterinary & AHTS Assn.

The Court then relied on the regulatory framework expressly mentioned in the opinion: the respondents were governed at appointment by the Punjab Civil Medical Services Class II (Recruitment and Conditions of Service) Rules, 1943. Under clause (5) of Rule 7, seniority was to be determined by dates of confirmation in service. The Court also noted that the ad hoc appointment orders specified that the appointees would be governed by those Rules, and further stated (in paragraph III of the appointment letter) that seniority would be determined only by the merit placement by the Punjab Public Service Commission. From this, the Court drew the conclusion that only regular service was to be counted towards seniority.

Given the binding nature of the earlier three-Judge Bench decision and its applicability, the Court stated it was unnecessary to delve further into the merits and held that the High Court’s orders including ad hoc service for higher pay-scale calculation could not be sustained.

Holding and Implications

ALLOWED; HIGH COURT JUDGMENTS/ORDERS SET ASIDE.

The Supreme Court vacated the High Court’s decisions that had included ad hoc service for computing the service period required to grant the higher pay scale under the proficiency step-up scheme, holding instead that only regular service counts, consistent with the cited precedent.

The Court further directed that if any respondent had already drawn amounts due to the higher pay scale granted by including ad hoc service, the State Government shall not recover the amounts already drawn. However, for fixation of cadre seniority, the position laid down in the order (i.e., counting only regular service) would govern. The Court made no order as to costs.

    State Of Punjab And Others v. Gurdeep Kumar Uppal And Others

    Order

    1. Leave granted in Special Leave Petitions Nos. 1561 of 1998 and 5626 of 1999.

    2. Heard Mr Anoop Chaudhari, learned Senior Counsel for the appellants and Mr A.S Sohal, learned counsel for the respondents.

    3. The respondents are doctors serving under the Government of Punjab.

    4. The main question that arises for consideration in these appeals is whether the period of ad hoc services rendered by the respondents is to be included for calculating the period of 8 or 18 years of service for giving higher scale of pay under the proficiency step-up scheme. This question was considered by a three-Judge Bench of this Court in State of Haryana v. Haryana Veterinary & AHTS Assn. (2000) 8 SCC 4 wherein this Court took the view that for calculating 8/18 years' service required for giving higher scale of pay and for determination of seniority only regular service rendered by the employee is to be counted and not ad hoc service.

    5. Learned counsel for the respondents strenuously contended that the respondents who are doctors serving under the State of Punjab are governed by a set of rules and circulars different from those which were considered in the decided case and therefore the ratio in that case will not be applicable in these cases. We have carefully considered the said contention. We have also considered Circular Letter No. 4-15-81 IPP/16047 dated 14-12-1981. On a plain reading of the circular it is clear that the instructions contained therein were based on the decision of the Punjab and Haryana High Court taking the view that ad hoc service should be taken into account for the purpose. This circular in our view can no longer form the basis of the contention in view of the recent decision by this Court in State of Haryana v. Haryana Veterinary & AHTS Assn. (2000) 8 SCC 4 Undisputedly the respondents at the time of their appointment were governed by the Punjab Civil Medical Services Class II (Recruitment and Conditions of Service) Rules, 1943. In clause (5) of Rule 7 of the said Rules it is provided that the seniority of the members, in each branch shall be determined by the dates of their confirmation in service. Further, in the orders appointing the respondents on ad hoc basis, it was specifically stated that they will be governed by the aforementioned Rules. It was further stated in paragraph III of the appointment letter that the appointee's seniority will be determined only by merit in which he or she is placed by Punjab Public Service Commission. Thus it is clear that only regular service is to be counted towards seniority.

    6. We do not feel it necessary to delve further into merits of the case in view of the decision of this Court in State of Haryana v. Haryana Veterinary AHTS Assn. (2000) 8 SCC 4 We are satisfied that the ratio in that case applies to the cases in hand. The resultant position that emerges is that the judgments/orders passed by the High Court holding that ad hoc service is to be included in calculating the period of service for giving the higher scale of pay are unsustainable and has to be vacated. Accordingly, the appeals are allowed and the judgments/orders of the High Court under challenge are set aside.

    7. However, we make it clear that if any of the respondents has drawn any amount on the basis of the higher scale of pay under the proficiency step-up scheme granted to him by including the period of his ad hoc service then the State Government shall not recover the amount already drawn by the employee though for fixation of the cadre seniority the position as laid down in this order will govern. No costs.

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    State Of Punjab And Others v. Gurdeep Kumar Uppal And Others
    (Feb 20, 2001)