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Internal Auditors cannot claim same pay scale parity as of Head Clerk in PSEB: SC

Case Law Details

TaxGuru Citation
2019 taxguru.in 252
Case Name
Punjab State Power Corporation Limited Vs Rajesh Kumar Jindal & Others (Supreme Court of India)
Date of Judgement/Order
Only available for paid members
Related Assessment Year
2010-11
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Punjab State Power Corporation Limited Vs Rajesh Kumar Jindal & Others (Supreme Court of India)

Conclusion: Internal auditors could not claim parity of pay scale as that of the Head Clerk in the Punjab State Electricity Board (PSEB) merely because they were categorised in same Group XII of Head Clerks as the nature of duties and responsibilities of Internal Auditors were different from Head Clerks.

Held: The issue arose for consideration was  that posts of Internal Auditors being in Group XII, who were on par with Head Clerks should be given parity of pay scale as that of Head Clerks, irrespective of the promotional avenues available to the Internal Auditors. It was contended that there was a parity of pay scales of the posts of Internal Auditors and Head Clerks for about two decades and while so, the order dated 03.10.1990 issued by the appellant-Board revising the pay scale of Head Clerks from Rs.1640-2925 to Rs.2000-3500 had disturbed the long-standing parity of pay scales of the posts of Head Clerks and the Internal Auditors and violative of the Article 14 and Article 16 of the Constitution of India. It was held  there was a difference in the nature of duties and responsibilities performed by the Head Clerks and Internal Auditors, Pay Anomaly Committee decided to allow the revised scale for Internal Auditor at Rs.1800-3200 with benefit of promotional increments and Rs.2000-3500 for Head Clerks. Merely because Internal Auditors were categorised in Group XII along with Head Clerks, the Internal Auditors could not claim parity as the nature of duties and responsibilities of Internal Auditors were different from Head Clerks. The High Court did not keep in view that the duties, nature of work and promotion channel of Head Clerks and Internal Auditors were entirely different and that option to seek promotion apparently as Internal Auditors was the “conscious exercise of option”, the impugned judgment could not be sustained and was liable to be set aside.

FULL TEXT OF THE SUPREME COURT JUDGMENT

Leave granted.

2. These appeals arise out of the judgment dated 23.02.2012 passed by the High Court of Punjab and Haryana at Chandigarh in LPA No.264 of 2012 and Order dated 04.05.2012 in LPA 1607- LPA of 2012 dismissing the appeals and the order dated 04.05.2012 in review petition in RA No.LP-16 of 2012 dismissing the review filed by the appellant-Board by holding that the SLP(C) No.10896 of 2011 involving the same issue i.e. parity of pay scale is already pending before the Supreme Court.

3. The parity in the pay scales of two posts – Head Clerks and the Internal Auditors in Group XII of the Punjab State Electricity Board (PSEB) is the subject matter of the issue in these present appeals. Brief facts of the case are as under:-

The Punjab State Electricity Board (PSEB), in exercise of the power conferred under Section 79(c) of the Electricity (Supply) Act, 1948 framed “Punjab Public Works Departments (Electricity Branch) State Service Class-III (Subordinate Posts) Rules, 1958 (adopted by the Board) Amendment Regulations, 1975. The recruitment and conditions of service governing the Head Clerks was introduced on 11.09.1985 which is called the Punjab State Electricity Board Ministerial Services Class–III Regulations, 1985 providing for educational qualifications and minimum experience required for Head Clerks. Initially, the pay scale of Head Clerks was Rs.150-300 and the pay scale of Internal Auditors was Rs.130-240. The pay scale of Internal Auditors was revised to Rs.150-300 w.e.f. 01.08.1963. Head Clerks and Internal Auditors were getting same pay scale of Rs.225-500 from 01.06.1967 and Rs.620-1200 from 01.01.1978. From 21.03.1989, revised scale of pay of regular employees was issued by the PSEB, and w.e.f. 01.01.1986, the scale of pay of the Head Clerks and the Internal Auditors was revised to Rs.1640-2925.

4. Pay Anomaly Committee was constituted by the appellant-Board to review the anomalies in the pay scales of various cadre. That on the basis of the report of Pay Anomaly Committee, the pay scale of both the categories – Internal Auditors and Head Clerks have been improved vide office order No.223/Fin./PRC-1988 dated 10.1990. The Internal Auditors have been allowed the revised scale of Rs.1800-3200 w.e.f. 01.01.1986 considering that the posts of Internal Auditors are filled by 55% from direct recruitment and 45% by promotion. The Head Clerks have been allowed the pay scale of Rs.2000-3500 with effect from 01.01.1986 and thus linked the scale of Head Clerk with Superintendent Grade-II under State Government.

5. Aggrieved by the order dated 03.10.1990 issued by the appellant-Board and alleging disparity and violation of Article 14 of the Constitution of India, the respondents preferred Civil Writ Petition No.10117 of 1992 before the High Court of Punjab and Haryana at Chandigarh, contending that the Internal Auditors, Head Clerks as well as Sub Fire Officers belong to same group viz. Group XII and that Internal Auditors were always on par with the Head Clerks being the promotional post from the post of Circle Assistants/ARAs Group XII. It was averred that vide order dated 03.10.1990, the appellant-Board fixed the pay scale of the Internal Auditor at Rs.1800-3200 and of the Head Clerks at Rs.2000-3500 and thus disturbing the parity in the pay scales of two posts which were being maintained for more than two decades. According to the respondents, the pay scale of Rs.1800-3200 had been given to the post of Circle Assistant from which the respondents were being promoted and there is no justification to give the same pay scale to the promotional post as well as feeder cadre. The said revision of pay scale was totally illogical and without any justification.

6.  In the counter affidavit filed before the High Court, the appellant-Board contended that though the posts of Head Clerks and Internal Auditors are categorised in Group XII, that cannot be the reason for claiming parity of pay scale. It was averred that the manner of recruitment, nature of duties and responsibilities of both the cadres are entirely different and respondents cannot claim parity of scale of pay. As per PSEB Ministerial Services Class-III Regulations, 1975, the post of Head Clerk is a promotional post and is generally available to the employees after completion of twenty-five years of service; whereas in the case of Internal Auditors, they are partly recruited directly from the market to the extent of 55% and balance 45% from Circle Assistants/ARAs after obtaining option for the purpose. According to the Board, on promotion the Circle Assistant/ARA are also eligible to opt for the cadre of Head Clerk and they cannot contend that they have not been given any opportunity for the post of Head Clerk. It is averred that the exercise of option to go in the channel of cadre of Internal Auditor is a ‘preferred option’ because of the promotional avenues with higher scales of pay. In view of this position, the Pay Anomaly Committee did not accept the demand of Internal Auditors to give parity with Head Clerks in the matter of pay scale.

7. Sub Fire Officers which is categorised in Group XII approached the High Court by way of Civil Writ Petition No.9294 of 1993 seeking parity in pay scale as that of the Head Clerks and Internal Auditors on the ground that they are included in the same group viz., Group XII. The learned Single Judge vide judgment dated 21.01.2010 allowed the CWP No.9294 of 1993 filed by the Sub Fire Officers by holding that till some point of time, persons working as Head Clerks, Head Clerk-cum-Divisional Accountants and Internal Auditors were given same scale of pay and therefore, parity of scale of pay cannot be denied to the Sub Fire Officers when the scales were increased for other three classes of persons within Group XII.

8. Against the order dated 21.01.2010 in CWP No.9294 of 1993, the appellant-Board preferred LPA No.713 of 2010 which came to be dismissed by the judgment dated 28.09.2010. Aggrieved by the judgment dated 28.09.2010, the appellant preferred SLP(C) 10896 of 2011 before this Court wherein, notice was issued and the same was pending for consideration before this Court.

9. The learned Single Judge of the High Court by its order dated 11.11.2011 allowed the Civil Writ Petition No.10117 of 1992 filed by the respondents-Internal Auditors claiming parity of pay scale with the Head Clerks on the erroneous assumption that the respondents are Sub Fire Officers or similarly situated as Sub Fire Officers who are seeking parity of wages with other persons. The learned Single Judge relying on the judgment in CWP No.9294 of 1993 dated 21.01.2010 allowed the writ petition without going into the merits of the contention of either of the parties. Appeal (LPA No.713 of 2010) preferred by the appellant-Board also came to be dismissed on the ground that SLP (C) No.10896 of 2011 is pending before the Supreme Court.

10. In these appeals, we are concerned with the question of parity of pay scale between the Head Clerks and the Internal Auditors. Though various contentious issues arose for determination between the parties, learned Single Judge as well as the Division Bench of the High Court proceeded under the erroneous footing as if the respondents are placed on par with Sub Fire Officer and held that the issue is covered by the judgment in CWP No.9294 of 1993 and that the issue is pending before the Supreme Court in SLP(C) 10896 of 2011. Since the writ petition was filed way back in the year 1992 and the lis is pending between the parties for more than twenty-six years, we have proceeded to consider the matter on merits without remitting the matter back to the High Court. We have heard the parties at length.

11. We have heard Mr. Nidhesh Gupta, learned Senior counsel appearing for appellant-Board at length and Mr. Saravpreet Singh, learned counsel appearing for the respondents. The learned Senior counsel Mr. Nidhesh Gupta has inter alia made the following submissions:-

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