25 November 1997
Supreme Court
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Vs

Bench: SUJATA V. MANOHAR,D.P. WADHWA
Case number: /
Diary number: 1 / 4068


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PETITIONER: SHRI SURYANARAYAN SAHU ETC.

       Vs.

RESPONDENT: THE COUNCIL OF SCIENTIFIC & INDUSTRIAL RESEARCH

DATE OF JUDGMENT:       25/11/1997

BENCH: SUJATA V. MANOHAR, D.P. WADHWA

ACT:

HEADNOTE:

JUDGMENT:                THE 25TH DAY OF NOVEMBER, 1997 Present:               Hon’ble Mrs. Justice Sujata V. Manohar               Hon’ble Mrs. Justice D.P. Wadhwa In-person for the appellant A.K. Sikri, Sr. Adv, Ms. Madhu Sikri and V.K. Rao, Adv. with him for the Respondents.                       J U D G M E N T      The following Judgment of the Court was delivered:                             WITH                 CIVIL APPEAL NO. 508 OF 1993 D.P. Wadhwa. J.      These two cross appeals arise out of the judgment dated June  19,  1989  of  the  Central  Administrative  Tribunal, Cuttack Bench  (for Short,  "the Tribunal"  )  on    a  writ application filed  by Suryanarayan  Sahu (appellant in Civil Appeal No.  50/- of  1993) .  At the relevant time, Sahu was working as  a senior  Draughtsman in  the Regional  Research Laboratory Bhubaneshwar, a unit of the Council of Scientific and Industrial  Research (CSIR).  While Sahu is aggrieved by the impugned  judgment in  not granting  him  pay  scale  of Rs.425-700/- from  1.1.1973 as  Junior  Draughtsman  and  as senior Draughtsman  in the  pay scale  of Rs. 550-900/- from 29.4.1974, Union  of India  is aggrieved  as the Tribunal in the impugned  judgment directed that Sahu be given pay scale of Rs. 425-700/- w.e.f. 29.4.1974.      Gensis  of   the  dispute   lies  in   the  Third   pay Commission’s Report  which the Central Government decided to implement  from   1.1.1973  and   rules  applicable  to  the employees working in the CSIR.      CSIR  is   a  society   registered  under  the  Society Registration Act. Rules & Regulations and Byelaws govern the functioning of the CSIR. Under Rule directed and controlled, subject to  Rules &  Regulations and  Bye-laws and orders of the society,  by the Governing Body. We do not have to refer to the  Rules &  Regulations and  Bye-laws of  the  CSIR  in details as  these are  not in controversy. Under Bye-law 12, conditions of  service of the officers and staff of CSIR are governed by  the Central  Civil (Classification, control and Appeals) Rules  and the  Central  Civil  Services  (Conduct)

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Rules for  the time  being in  force. Under  Bye-law 14, the scales of pay applicable to all the employees of the society shall not be in excess of those prescribed by the Government of  India  for  similar  personnel,  save  in  the  case  of specialists. Under  Bye-law 15,  in regard  to  all  matters concerning service  conditions of  employees of the Society, the  Fundamental  and  supplementary  Rules  framed  by  the Government of  India and  such other rules and orders issued by the  Government of India from time to time shall apply to the extent  applicable to  the employees of the Society. By- laws 14  and 15 of the CSIR framed by the Governing Body are as under:      "14. The  scales of  pay applicable      to all the employees of the Society      shall not be in the excess of those      prescribed  by  the  Government  of      India for  similar personnel,  save      in the case of specialists.      15.  In   regard  to   all  matters      concerning  service  conditions  of      employees  of   the  Society,   the      Fundamental and Supplementary Rules      framed by  the Government  of India      and Such  other  rules  and  orders      issued by  the Government  of India      from time  to time  shall apply  to      the  extent   applicable   to   the      employees of the Society.      Notwithstanding anything  contained      in this Bye-law, the Governing Body      may establish  and maintain schemes      providing for benefits to employees      of       the       Society       on      Superannuation/Retirement.      Rule 75 of CSIR Rules and Regulations as referred to in the grounds of appeal in the appeal of the CSIR is as under:      "75(a)      The   scales   of   pay      applicable  to   the  officers  and      establishments in  the  service  of      the Society  shall not be in excess      of   those    prescribed   by   the      Government  of  India  for  similar      personnel,  save  in  the  case  of      specialists.      (b)  In   regard  to   all  matters      concerning    service     of    the      conditions  of   employees  of  the      Society,   the    Fundamental   and      Supplementary Rules  framed by  the      Government of  India and such other      rules  and  orders  issued  by  the      Government of  India from  time  to      time  shall  apply  to  the  extent      applicable to  the employees of the      Society.      Notwithstanding anything  contained      in this  Bye-law, the Governing Bod      shall have  the power  to relax the      requirement of  any  rule  to  such      extent   and    subject   to   such      conditions  as   it  may   consider      necessary.      (c) Deleted."      It was  not clarified  as to  why By-laws 14 and 15 and Rule 75 exist though effect would appear to be the same.

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    The petitioner  who was  a  matriculate  and  possessed diploma in  Draughtsman was  appointed as  a Tracer  in  the regional Research  Laboratory, Bhubaneshwar  w.e.f. 4.3.1965 in the  pay-scale of  Rs. 110-200/-.  ON 18.11.1967,  he was promoted to  the post  of Junior Draughtsman in the scale of pay of Rs. 115-240. On 29-4.1974, he was further promoted to the post  of senior  Draughtsman in  the scale of pay of Rs. 380-640.      Recommendations  of   the  Third  Pay  Commission  were accepted by  the Central  Government w.e.f. 1.1.1973. One of the recommendations  of the  pay Commission  related to  the scales  of   pay  of  Draughtsman  and  senior  Draughtsman. Draughtsmen were  to be  in the  pay scale  of Rs. 330-560/- while the  senior Draughtsmen  were divided  into two groups with two  scales of  pay of Rs. 330-560/- and Rs. 425-700/-. 50% of  the senior Draughtsmen who were high up in seniority were given  he scale  of Rs. 425-700/- and the remaining 50% were placed  in the  lower scale  of pay.  This division  of senior Draughtsmen was challenged in the Supreme court in P. Savita &  Ors. vs.  Union  of  India,  Ministry  of  Defence (Department of  Defence Production).  New Delhi & Ors. [1985 (Supp.) SCC  94]. It  was submitted  before this  Court that Draughtsman both  junior  and  senior  discharged  identical duties and  performed similar  work and  that that being so, there was  little or no justification in putting 50% of them in a  higher scale of pay and 50% others in a lower scale of pay  and   further  that   this  grouping  was  without  any intelligible differentia. The Court accepted the contentions raised by  the junior Draughtsmen and found no justification in  dividing   senior  Draughtsman   into  two  groups  with different pay  scales. The  judgment was  delivered  on  May 1,1985. A  direction was issued to Union of India to fix the scale of  pay of  Junior Draughtsman  also at Rs. 425-700/-. After the  decision of  this Court  in P. Savita’s Case, the Government of  India by notification dated 11.9.1985 decided that the  Draughtsmen who  were in the pay scale of Rs. 250- 280/- prior to 1.1.11973 and were placed in the scale of Rs. 330-560/- based  on the  recommendations of  the  third  pay Commission  might  be  given  the  scale  of  Rs.  425-700/- notionally from 1.1.1973 but actually from 1.9.1987.      CSIR is  an autonomous body. The recommendations of the Pay Commission  cannot be  made applicable to CSIR suo motu. It would  be up  to the  governing body of the CSIR to adopt the  recommendations   of  such   pay  Commission.  CSIR  by Resolutions has been adopting the recommendations of the pay Commissions for  formulating the  pay  scales  of  different categories of  its employees but the recommendations, it was stated, were not adopted in to and that CSIR adopted a broad pattern of  Government of  India scale as recommended by the Third Pay  Commission. In  the CSIR, there are two cadres of Draughtsman, i.e.,  junior and  senior. It is stated that on the  basis   of  the   recommendations  of  the  Second  pay commission as  approved by the CSIR, junior Draughtsmen were placed  in  the  pay  scale  of  Rs.  150-240/-  and  senior Draughtsmen in  the scale  of Rs.  205-280/-. A  Tracer  was placed in  the pay  scale of  Rs. 110-200 which was given to Sahu at  the time  of his  appointment  as  Tracer.  On  his promotion to  the post  of junior Draughtsman, he was placed in the scale of Rs. 150-240.      As  noted   above,  Third  Pay  Commission  report  was implemented by  the  Government  for  its  employees  w.e.f. 1.1.1973. CSIR  adopted the  broad pattern of the Government of India  scale of  pay as  recommended  by  the  Third  Pay Commission  as   per  Rule  75(a)  of  the  CSIR  Rules  and Regulations. It is stated that the revised scales of pay for

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the  CSIR   employees  including   the  junior   and  senior draughtsmen  were   fixed  keeping  in  view  the  following guidelines based  on the  recommendations of  the Third  Pay Commission as approved by the governing Body:      "(a) to reduce the number of scales      applicable to CSIR employees to 15;      (b)  to   frame  these   scales  in      consonance  with   the  pay  scales      recommended  by   the   Third   Pay      Commission  as   accepted  by   the      Government of India.      (c) existing  employees were  to be      accommodated in these 15 scales.      In its  61st Meeting  of the Governing Body of the CSIR held  on  February  26,  1974  revised  pay  scales  of  the employees were  approved  and  it  was  also  resolved  that revised pay  scales should  be  given  effect  from  January 1,1973 as in Government Departments.      It is  stated by the CSIR that while framing 15 scales, some deviations  were required to be made to accommodate the employees so that it might not be possible to follow all the pay scales  prescribed by  the Third pay Commission in their entirety. Thus,  keeping in  view  the  existing  scales  of junior and  senior Draughtsmen,  these were  placed into two scales respectively  of Rs. 380-560/- and Rs. 380-640/-. The CSIR subsequently  revised these scales to Rs. 330-560/- for junior Draughtsmen and Rs. 425/-700/- for senior Draughtsmen w.e.f.   1.5.1978.    Further   in   accordance   with   the recommendations of  the Third  Pay Commission,  50%  of  the posts in the scale of Rs. 380-640/- were revised to 425-700. Senior Draughtsman  belonging to  this category  were  thus, placed in  the pay  scale of  Rs. 425-700 w.e.f. 1.6.1978 or from the  date  of  option  or  from  any  subsequent  date. Remaining 50%  of  senior  Draughtsmen  who  were  lower  in seniority were allowed to remain in the scale of Rs. 380-640 as personal  to them  till they got seniority to fall within the first  50% of  senior  Draughtsmen  who  were  lower  in seniority were allowed to remain in the scale of Rs. 380-640 as personal  to them  till they got seniority to fall within the first  50% of the posts to come in the scale of Rs. 425- 700/-. Accordingly  Sahu was placed in the scale of Rs. 425- 700/- w.e.f. 1.8.1979 when he gained the seniority. CSIR has been  adopting   a  promotion   scheme  and  under  the  new assessment promotion  scheme, the  nest higher  grade of the senior Draughtsman  was in  the scale  of Rs.  550-900/- and Sahu was  to be  assessed for promotion to this higher grade after 5  years of his having been placed in the scale of Rs. 425-700/-. He  was called  for interview  on 12.10.1984  for assessment promotion  to the  next higher  grade to Rs. 550- 900/- but he refused to attend the same. It is admitted that Sahu got this higher grade on 1.8.1985. Sahu is certainly in a better  position compared  to the  decision of the Central Government implementing  the directions  of this Court in P. Savita’s case  as he  got the  scale of pay of Rs. 425-700/- from 1.8.1979.      Sahu in  his submissions  relied  on  the  award  dated 20.6.1980 of  the Board of Arbitration (JCM) of the Ministry of Labour  to claim  the pay  scale of  Rs.  550-900/-.  His grievance has  also been  that  when  he  was  appointed  as Tracer, he  was given  a lower  scale of  pay.. Whatever the merit of  his case,  it is  too late  in the  day for him to contend so  as his grievance of 1965 cannot be allowed to be agitated  at   this  stage.   The  award  of  the  Board  of Arbitration was  with reference  to the  demand  for  upward revision in  the pay-scales of Draughtsmen of Grade III to I

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employe din  the CPWD.  The relevant portion of the award is as under:      "1.   The   Three   categories   of      Draftsmen viz.  Grade III, Grade II      and Grade  I shall  be inducted  in      the  pay   scales  shown  hereunder      against  each   of  the   aforesaid      categories. Draftsmen Grade III   - RS.330-560/- Draftsmen Grade II   -  Rs.425-700/- Draftsmen Grade I    -  Rs.550-900/-      2. The  above mentioned  categories      of   Draftsmen   shall   be   fixed      notionally  in   their   respective      scales of  pay  as  aforesaid  from      1.1.1973  in  accordance  with  the      recommendations of  the  Third  Pay      Commission in  respect of weightage      and fitment. But for computation of      arrears,  the   date  of  reckoning      shall be  the date  of recording of      disagreement  in  the  Departmental      Council viz. 29.7.1977".      Though by  the impugned judgment, the Tribunal directed that Sahu  be given  scale of  pay  of  Rs.  425-700  w.e.f. 29.4.1974 when  he was  promoted as  senior Draughtsman,  as regards his  contention for the scale of pay of Rs. 550-900, the Tribunal  said that  there was  no  such  scale  in  the recommendations of  the Third  Pay Commission  and that this scale had  been adopted  by the  CSIR in  view  of  its  own requirements.  The   Tribunal  noticed   that  there  was  a prescribed  method  of  assessing  the  suitability  of  the officers for promotion to this grade and that the petitioner had  to  comply  with  the  requirement  of  the  prescribed procedure and  that he  had not  appeared before  the Expert Committee in  1984. He  must, therefore, pay the penalty for this omission. The Tribunal observed that Sahu shall have to wait for his turn and it expressed hope that he would appear before the Committee and get himself selected after which he shall be  entitle to scale of pay of Rs. 550-900/-. As noted above, the  petitioner was  granted this scale of pay w.e.f. 1.8.1985, after he had appeared before the Expert Committee. It would,  thus, be  seen that  the  CSIR  itself  took  the decision on  1.6.1978 to  give higher  scale of  pay to  its senior Draughtsmen  and in  pursuant of  that Sahu  got this scale on  1.8.1979. As  regards the  CSIR get one assessment promotion under  the new  recruitment and  assessment scheme after a specified period irrespective of the availability of posts and that such scheme of promotion was not available in any other  services in  the Government  of  India.  Moreover while a  Draughtsman in  the Government  would retire at the age of  58 years, in the CSIR, he would retire at the age of 60 years.  It was  also submitted that the nature of work in the CPWD for Draughtsmen was different then those working in the CSIR.  We have to examine how far and to what extent the principle of ’equal pay for equal work’ is applicable.      In Randhir  Singh vs.  Union of  India & Ors. [(1982) 1 SCC 618],  the Court was to consider the principle of "equal pay for  equal work" under the reference to the Preamble and Articles 39(d),  14 and  16 of  the Constitution.  The Court negatived the  plea of  the respondent that the circumstance that  persons   belong  to   different  departments  of  the Government is  itself a  sufficient circumstance  to justify different sales of pay irrespective of the identity of their powers, duties  and responsibilities. The Court said that if

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this view  is to be stretched to its logical conclusion, the scales of pay of officers of the same rank in the Government of  India   may   vary   from   department   to   department notwithstanding    that     their    powers    duties    and responsibilities are  identical.  The  Court  then  observed thus:      "We concede  that equation of posts      and equation  of  pay  are  matters      primarily   for    the    Executive      Government and  expert bodies  like      the  pay  Commission  and  not  for      courts but  we must  hasten to  say      that where  all  things  are  equal      that   is    where   all   relevant      considerations   are    the   same,      persons holding identical posts may      not be  treated  differentially  in      the  matter  of  their  pay  merely      because they  belong  to  different      departments. Of course, if officers      of the same rank perform dissimilar      functions and  the  powers,  duties      and responsibilities  of the  posts      held by them vary, such officer may      not  be   heard  to   complain   of      dissimilar pay  merely because  the      posts are  of the same rank and the      nomenclature is the same."      The Court further said thus:      "Construing Articles  14 and  16 in      the  light   of  the  preamble  and      Article 39(d),  we are  of the view      that the  principle ‘equal  pay for      equal work’ is deducible from those      Articles  and   may   be   properly      applied to  cases of unequal scales      of pay  based on  no classification      or irrational classification though      those drawing  the different scales      of pay  do identical work under the      same employer."      This Court further said thus:      "It is well known that there can be      anc there are different grades in a      service,        with        varying      qualifications  for  entry  into  a      particular grade,  the higher grade      often being  a  promotional  avenue      for officers  of the  lower  grade.      The  higher  grade,  which  may  be      either academic  qualifications  or      experience  based   on  length   of      service,  reasonably   sustain  two      grades  with  different  scales  of      pay. The  principle of  ’equal  pay      for  equal   work’  would   be   an      abstract  doctrine  not  attracting      Article 14  if sought to be applied      to them."      In State of U.P. & Ors. vs.   J.P.  Chaurasia   &  Ors. [(1989) 1 SCC 121], again considering the question of parity in employment  for the  purpose of  pay fixation, this court said that  in service matters the merit and experience could be the proper basis for classification to promote efficiency in  administration  and  that  he  or  she  learns  also  by

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experience as  much as  by other  means and  further that it could not  be denied  that the  quality of work performed by persons of  longer experience  was superior than the work of newcomers. The Court was of the view that this principle was even  recognised   in  Randhir   Singh’s  case.  The  Court, therefore, held  that classification based on experience was a reasonable  qualification and that it had a rational nexus to the  object thereof  and to  hold otherwise,  it would be detrimental to the interest of the service itself. In Tarsem Lal Gautam & Anr. vs. State Bank of Patiala & Ors. [(1989) 1 SCC 182],  the main grievance of the petitioner was that the new Regulations  merely brought  about  a  revision  of  pay scales and  that the  differentiation amongst  the  existing Grade-A Officers  who were doing the same nature of work and who would continue even after the placement in the new cadre to do the same work into two grades with different scales of pay based  purely on  the for fortuitous circumstance of the date of their promotion to the existing Grade was arbitrary. The Court,  after examining various decisions including that in P. Savita’s case, said as under:      "This, we think, is not an instance      to which  the principle  of  ’equal      pay   for    equal   work’    could      straightway be applied. Indeed, the      qualitative differences  in  regard      to  degrees   of  reliability   and      responsibility cannot  be put aside      as irrelevant.  There cannot be any      thumb rule to decide the invalidity      of the  provisions which  recognise      and provide  for differentiation on      the  basis  of  higher  experience,      reliability and responsibility."      The Court  was, thus, of the view that the principle of classification amongst  existing officers  Grade-A  for  the purpose of  fitment in the new dispensation brought about by statutory regulations  could not  be said to be unreasonable and arbitrary  requiring to  be struck  down as violative of Article 14.  In State  of Madhya  Pradesh &  Anr. vs. Promod Bharatiya &  Ors. [AIR 1993 sc 286 = (1993) 1 SCC 539], this Court was  again concerned  to examine  the principle ’equal pay for equal work’ . The Court said thus:      "The material  above mentioned goes      to show that (a) the qualifications      prescribed for the lecturers in the      Higher Secondary  Schools  and  the      non-technical     lecturers      in      Technical School  are the same; (b)      service  conditions   of  both  the      categories of  lecturers are  same;      and (c)  that  the  status  of  the      schools is also the same. There is,      however, a  conspicuous absence  of      any   clear    allegation    and/or      material suggesting  that functions      and responsibilities  of  both  the      categories of lecturers is similar.      Much less  is there  any allegation      or   proof    that    qualitatively      speaking,  they   perform   similar      functions. It  is not enough to say      that the  qualifications  are  same      nor is  it enough  to say  that the      schools are  of the same status. It      is also  not sufficient to say that

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    the service conditions are similar.      What is  more important and crucial      is whether  they discharge  similar      duties,        functions        and      responsibilities.  On   this  score      there is  a noticeable  absence  of      material."      In Purshottam  Lal & Ors. vs. Union of India & Ors [AIR 1973 SC  1088= (1973)  1 SCC  651], which was referred to by Sahu, the  issue before  this Court  was if  the petitioners were discriminated against by the Government in violation of their fundamental  rights in  Article 14  and  16  of  t  he Constitution. The Court was concerned with the acceptance of recommendations  of   pay  Commission.   It  said  that  the Government had  made a  reference  in  respect  of  all  the employees and  that if  it accepted  the recommendations, it was bound to implement the recommendations in respect of all the Government  employees and  if it  did not  implement the report regarding  some employees only it commits a breach of Articles 14 and 16 of the Constitution and this was what the Government had  done as  far as  the petitioners  before the Court  were   concerned.  This   Court,  therefore,   issued directions to  the Government to grant revised pay of scales to the  petitioners. This  decision, in  our  view,  is  not relevant to the issue canvassed before us.      The situation  that now  emerges is  that CSIR  is  not bound to  adopt all  the recommendations  of the  Third  Pay Commission and  it is not material if the Central Government accepted the  recommendations of  the Third  Pay Commission. CSIR is an independent body. Principle of law which has been settled by  this  Court  in  string  of  judgments  is  that different scales  of pay  can be granted based on experience and merit  to the  employees  working  in  the  same  grade. Classification based  on experiences  is valid.  An employee having more  length of  service is certainly better equipped to perform  his duties  of an  office than  a relatively new employee.  We  have  already  noticed  above  that  Sahu  is certainly  better  placed  than  Draughtsmen  in  Government service to  whom principle laid in P. Savita’s case has been applied by the Central Government. Once we have reached this conclusion the  answer  to  the  question  raised  in  these appeals become  self-evident.  Tribunal  was  not  right  in holding that  CSIR violated  the principle of "equal pay for equal work’  when it resolved that 50% of the members of the cadre of  Senior Draughtsmen would be placed in higher scale of pay  leaving the other 50% for the lower scale of pay. It would be seen that revised pay-scales for Draughtsmen in the CSIR are  more beneficial to them than what was given in the Third Pay  Commission  and  which  recommendation  had  been accepted  by  the  Central  Government  for  its  employees. Reliance  of   Sahu  on  the  proceeding  of  the  Board  of Arbitration of  the Ministry of Labour to claim the same pay scale as  awarded by the Board of Arbitration to Draughtsmen working in  CPWD is erroneous. For firstly CSIR is not bound to adopt  the same pay scale given to Draughtsmen working in CPWD, a  Department of  the Central Government, and secondly it has been pointed out that work of Draughtsmen in CPWD and those in CSIR is not similar.      Direction of  the Tribunal  to give scale of pay of Rs. 425-700 to  Sahu  with  effect  from  29.4.74  when  he  was promoted to  the  grade  of  senior  Draughtsman  cannot  be sustained. Grant  of pay  Scale of Rs.425-700 by the CSIR to Sahu with effect from 1.6.78 is as per the rules of the CSIR and is valid.      Accordingly, the appeal filed by Sahu (Civil Appeal No.

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507/93) is  dismissed and  that appeal filed by CSIR. (Civil Appeal 508/93)  is allowed.  The impugned  judgment  of  the Central   Administrative   Tribunal   (Cuttack   Bench)   is dismissed. In the circumstances there will be no order as to costs.