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AMICUS AI
Citation Codes
Neutral Citations
2005 INSC 32
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Rule 1316 of the Indian Railway Establishment Code (for short ‘the Code’) and Section 5, Subsection 2 of the 1983 Income Tax Act
  • Section [not specified], Rule 1316 of the Indian Railway Establishment Code (for short "the Code")
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Cites
Cited by
Citation Codes
Neutral Citations
2005 INSC 32
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Rule 1316 of the Indian Railway Establishment Code (for short ‘the Code’) and Section 5, Subsection 2 of the 1983 Income Tax Act
  • Section [not specified], Rule 1316 of the Indian Railway Establishment Code (for short "the Code")
Smart Summary

Factual and Procedural Background

The appellants were employed as Drivers Grade C in the Central Railways and, between 1970 and 1974, were promoted to the stationary post of Loco Supervisor carrying the pay scale of Rs 700-900. Drivers received a 30% running allowance calculated on basic pay. Implementation of the IV Pay Commission with effect from 1-1-1986 enhanced both basic pay and the running allowance for Drivers still in that cadre. Consequently, Drivers Grade A who were promoted to Loco Supervisor after 1-1-1986 began to draw higher pay than the appellants, although junior to them.

The General Manager initially issued a circular stepping up the appellants’ pay to remove this anomaly, and arrears were disbursed. In 1992, however, the circular was withdrawn on the ground that codal conditions—specifically Rule 1316 of the Indian Railway Establishment Code, Volume II—had not been fulfilled.

Persons similarly situated had earlier succeeded before the Central Administrative Tribunal (CAT), Jabalpur, but that relief was set aside by the Supreme Court in Union of India v. O.P. Saxena (1997 6 SCC 360). In the present matters the CAT, Bombay dismissed the appellants’ challenge to the withdrawal, and the Bombay High Court dismissed their writ petitions. The appellants now appeal those High Court orders.

Legal Issues Presented

  1. Whether employees promoted as Loco Supervisors before 1-1-1986 are entitled to stepped-up pay to attain parity with juniors promoted after that date.
  2. Whether Rule 1316 of the Indian Railway Establishment Code applies to bar such stepping-up, and whether Union of India v. O.P. Saxena (1997 6 SCC 360) governs the present appeals or requires reconsideration.

Arguments of the Parties

Appellants' Arguments

  • Union of India v. O.P. Saxena is distinguishable because that case involved juniors seeking parity with a senior (Mr Kareer), whereas the present appellants were seniors seeking removal of an anomaly vis-à-vis juniors.
  • The Supreme Court in Saxena erroneously assumed that Rule 1316 applied; in reality, the rule does not govern their situation, so the decision requires reconsideration.

Respondents' Arguments

  • The controversy is squarely covered against the appellants by Union of India v. O.P. Saxena; hence the appeals must fail.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Union of India v. O.P. Saxena (1997 6 SCC 360) Rule 1316 of the Indian Railway Establishment Code governs stepping-up of pay; employees promoted before 1-1-1986 who do not satisfy codal conditions are not entitled to parity. The Court treated Saxena as binding, found no distinguishing features, and relied on it to reject the appellants’ claim.

Court's Reasoning and Analysis

The Supreme Court examined the earlier three-Judge decision in Saxena and found that:

  • The present appellants are in identical factual and legal circumstances—having opted for promotion to the stationary post of Loco Supervisor prior to 1-1-1986—so the ratio in Saxena directly applies.
  • Saxena was not decided on an “assumed” applicability of Rule 1316; the earlier Bench had expressly analysed the rule and concluded that its conditions were unmet where promotions stemmed from multiple feeder grades (Drivers A, B, and C).
  • The appellants likewise do not satisfy the codal conditions because the source of recruitment to Loco Supervisor is diverse, defeating the principle of stepping-up.
  • Arguments urging reconsideration of Saxena lack merit; the decision is sound, exhaustive, and delivered by a larger Bench.

Consequently, the CAT and High Court were correct in refusing stepped-up pay after withdrawal of the 1988 circular.

Holding and Implications

Appeals Dismissed. The Supreme Court affirmed the Bombay High Court’s judgment and the CAT’s order, holding that the appellants are not entitled to stepped-up pay.

Implications: The ruling reinforces the authority of Union of India v. O.P. Saxena and clarifies that employees promoted to Loco Supervisor before 1-1-1986 cannot invoke stepping-up where Rule 1316 conditions are unmet. No new legal principle is announced; the decision maintains the status quo for similarly situated railway employees.

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    Surendra Kumar v. Union Of India And Others

    P.K Balasubramanyan, J.— The appellants were working as Drivers Grade C in the Central Railways. They, along with Drivers Grade A and Drivers Grade B, were entitled to be considered for selection to the higher post of Loco Supervisors. The appellants as Drivers, in addition to the scale of pay at Rs 150-240, were also entitled to a running allowance of 30% of the salary which was liable to be added to their basic pay. They were promoted between the years 1970 and 1974 as Loco Supervisors in the grade of Rs 700-900.

    2. The Railways accepted the recommendations of the IVth Pay Commission with effect from 1-1-1986. This increased the pay of the Drivers as well as their running allowance, being 30% of their basic pay. Certain persons who were working as Drivers Grade A were promoted as Loco Supervisors in the year 1986. The pay revision with effect from 1-1-1986 not only increased their pay, but also the running allowance of those working as Drivers as on that day, it being 30% of their increased basic pay. This resulted in the appellants getting lesser pay as Loco Supervisors than those promoted after 1-1-1986 since they did not have the advantage of the increased 30% addition in their running allowance and they had to be content with the 30% running allowance on their pay prior to the pay revision. Representations were made by the appellants pointing out that though they were promoted as Loco Supervisors earlier, they were getting lesser pay than those Drivers promoted subsequent to 1-1-1986 and some of whom were their juniors. The General Manager took up their grievance and a circular was issued authorising the stepping up of the pay of the appellants. The pay was thus stepped up and arrears paid. But subsequently in the year 1992, the said circular was withdrawn on the basis that codal conditions had to be fulfilled for getting stepped-up pay and they did not fulfil that condition. A person similarly situated as the appellants along with certain others, approached the Central Administrative Tribunal, Jabalpur challenging the withdrawal of the stepped-up pay. The Administrative Tribunal upheld their claim. The decision of the Administrative Tribunal was challenged by the Union of India in this Court. By judgment dated 14-7-1997 in Union of India v. O.P Saxena (1997) 6 SCC 360 this Court allowed the appeal, set aside the order of the Administrative Tribunal and dismissed the applications filed before the Administrative Tribunal by persons similarly situated as the appellants.

    3. In these cases the Central Administrative Tribunal, Bombay rejected the challenge of the appellants to the withdrawal of the stepped-up pay. The appellants challenged the said decision before the High Court of Bombay. The High Court dismissed the writ petitions. It is the dismissal of those writ petitions that are challenged before us.

    4. Learned counsel for the respondents, at the outset, submitted that the question raised by the appellants is covered against them by the decision of this Court in Union of India v. O.P Saxena (1997) 6 SCC 360 and these appeals have only to be dismissed in the light of the said decision. Learned counsel for the appellants in that context argued that the decision in Union of India v. O.P Saxena (1997) 6 SCC 360 was distinguishable. He alternatively contended that the said decision requires reconsideration since this Court had assumed that codal conditions, especially Rule 1316 of the Indian Railway Establishment Code (for short “the Code”), applied to persons similarly situated as the appellants and this erroneous assumption has led to the conclusion in that case, which was also erroneous. It was submitted that the said decision related to claims by those who were juniors to one Mr Kareer who got promoted as a Loco Supervisor from Driver Grade A whereas in the present case, the appellants were seniors to Mr Kareer when they were promoted as Loco Supervisors from the post of Drivers Grade C. Since the claim is by those who were seniors to Mr Kareer, the decision of this Court did not apply to the appellants.

    5. On going through the decision in Union of India v. O.P Saxena (1997) 6 SCC 360 we find that it is not possible to accept the distinction sought to be made by the learned counsel for the appellants between those involved in the said decision and in the present case. The appellants also opted to be promoted to the stationary post of Loco Supervisors directly from the post of Drivers Grade C and their promotions were also made prior to 1-1-1986. It was the claim of such persons that was considered by this Court in the said reported decision and this Court held that those who were promoted before 1-1-1986 did not satisfy the codal conditions and Rule 1316 of the Code, Vol. II, governing the principle of stepping up of pay. This Court held that going by Rule 1316, the persons promoted from Drivers Grade C to the post of Loco Supervisors before 1-1-1986 were not entitled to stepped-up pay and could not claim the benefit of the circular dated 8-4-1988 and the withdrawal of that circular regarding persons similarly situated in the year 1992 was justified. The factum of seniority of Mr Kareer was only incidentally referred to. The decision was not rested on that fact or aspect at all.

    6. The argument that the codal conditions and Rule 1316 did not apply to the appellants and that they were assumed to apply in that decision, could not also be accepted. The argument that it was assumed that Rule 1316 applied, is found to be not tenable. The Court considered the question whether Rule 1316 applied and noticed the conditions to be fulfilled to enable the seniors to claim parity of pay with those subsequently promoted. This Court held that the conditions were not satisfied in the case of persons similarly situated as the appellants and based on it, the conclusion was arrived at that they were not entitled to the stepped-up pay. This Court also noticed that the sources of recruitment to the post of Loco Supervisors in the case of Drivers took in Drivers Grade A, Drivers Grade B and Drivers Grade C and hence the sources were different and that made the principle of stepping up of pay inapplicable. Thus, we find that the decision of this Court in Union of India v. O.P Saxena (1997) 6 SCC 360 cannot either be distinguished or taken to be based on an assumption regarding applicability of Rule 1316. We find that the claim of the appellants is squarely covered by the decision in Union of India v. O.P Saxena (1997) 6 SCC 360 necessarily justifying the rejection of their claim by the Central Administrative Tribunal and the High Court. We are also in respectful agreement with the view that Rule 1316 has application and that the appellants do not satisfy the conditions of that rule.

    7. Having considered the arguments in that behalf and having carefully gone through the decision in Union of India v. O.P Saxena (1997) 6 SCC 360 we do not find any justification in doubting the correctness of the said decision rendered by a Bench of three Judges. On a consideration of the relevant aspects, we find that this Court had considered all the relevant aspects while rendering the said decision and there is no reason for not applying the ratio of the said decision or for doubting its correctness. We are, therefore, of the view that the argument that the said decision requires reconsideration, is without substance.

    8. In the light of the decision in Union of India v. O.P Saxena (1997) 6 SCC 360 the decision of the Central Administrative Tribunal as affirmed by the High Court of Bombay, challenged before us, has only to be sustained. We, therefore, confirm the decision of the High Court and dismiss these appeals. However, in the circumstances, we make no order as to costs.

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    Comments

    Surendra Kumar v. Union Of India And Others
    (Jan 13, 2005)