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SC Partly Allows Higher Pay-Scale Arrears Subject to Delay and Laches

Case Law Details

TaxGuru Citation
2026 taxguru.in 9714
Case Name
Rushibhai Jagdishbhai Pathak Vs Bhavnagar Municipal Corporation (Supreme Court of India)
Date of Judgement/Order
Only available for paid members
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Rushibhai Jagdishbhai Pathak Vs Bhavnagar Municipal Corporation (Supreme Court of India)

The Supreme Court considered appeals filed by employees of the Bhavnagar Municipal Corporation challenging the judgment of the Gujarat High Court’s Division Bench, which had partly allowed their claims for a higher pay-scale. The Division Bench had restricted the benefit of the higher pay-scale of ₹5,000–8,000 with consequential benefits from the date of the Single Judge’s judgment dated 31.07.2018 on account of delay and laches in approaching the Court. It had declined the employees’ claim for arrears from 2010 and also held that the Corporation was not required to refund amounts recovered pursuant to its order dated 28.10.2010.

The appellants were initially appointed as Junior Clerks on an ad hoc basis and were later made permanent as Data Entry Operators in the Computer Department of the respondent Corporation in the pay-scale of ₹4,000–6,000. On 19.02.2007, the Corporation adopted, with modifications, the Government of Gujarat’s Higher Grade Scale Scheme intended to address the absence or limited chances of promotion. The Scheme contemplated grant of the pay-scale of the next promotional post upon completion of 9, 18 or 27 years of service. Pursuant to the Scheme, the appellants were granted the higher pay-scale of ₹5,000–8,000 after executing undertakings agreeing, among other things, to accept reversion to the original pay-scale if the benefit was later denied.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 19,970

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