Holding

Parity of pay cannot be claimed by Internal Auditors over Head Clerks merely on the basis of group classification; the revision of pay scales is an executive function based on expert assessment and is not subject to judicial review.

Summary

The Punjab State Electricity Board revised the pay scales of Head Clerks (Rs.2000‑3500) and Internal Auditors (Rs.1800‑3200) in 1990, disturbing a long‑standing parity that had existed for over two decades. Internal Auditors filed writ petitions claiming that the revision violated Articles 14 and 16 of the Constitution because the posts were in the same Group XII. The Board argued that the posts differ in recruitment, qualifications, duties, and promotional avenues, and that the Pay Anomaly Committee’s expert analysis justified the separate scales. The Supreme Court examined the factors relevant to pay‑equation – mode of recruitment, qualifications, nature of duties, promotional prospects, and financial impact – and held that the burden of proof lies on the employees seeking parity. Finding no evidence of identity between the two posts, the Court concluded that the revision is a matter of executive discretion and not amenable to judicial review. Consequently, the High Court’s order granting parity was set aside and the appeals were allowed.

Issues considered

The Internal Auditors' entitlement to parity of pay scale with Head Clerks despite being in the same Group XII.
Whether the revision of pay scales by the Pay Anomaly Committee is subject to judicial review under Articles 14 and 16.
The burden of proof for establishing equality of posts in pay‑equation cases.

Legislation cited

Electricity (Supply) Act, 1948s. 79(c)
Punjab State Electricity Board (Revised Pay) Regulations, 1988s. Regulation 3(g)

Subjects

pay parityservice lawpay scale revisionjudicial reviewequality clauseinternal auditorhead clerkpay anomaly committeepromotiongroup classification

Judgment

[2019] 2 S.C.R. 289 289

PUNJAB STATE POWER CORPORATION LIMITED A
v.
RAJESH KUMAR JINDAL & OTHERS
(Civil Appeal Nos.195-198 of 2019)
JANUARY 08, 2019 B
[R. BANUMATHI AND INDIRA BANERJEE, JJ.]
Service Law: Pay scale – Parity of – Posts of Head Clerks
and the Internal Auditors in State Electricity Board – Internal
Auditors seeking parity of pay scale with Head Clerks irrespective
C
of the nature of recruitment, qualifications and nature of duties
and responsibilities – Entitlement of – Case of internal auditors
that for about two decades there was a parity in pay scales of the
posts of Internal Auditors and Head Clerks and thereafter, on
revision of the pay scale of Head Clerks by the Board, the long
standing parity of pay scales of the two posts was disturbed – D
Held: Internal auditors are not entitled to claim parity with head
clerks irrespective of the nature of recruitment, qualifications and
nature of duties and responsibilities – Pay Anomaly Committee gave
elaborate reasons for revising the pay scales of the Head Clerks at
Rs.2000-3500 and Internal Auditors at Rs.1800-3200 with benefit
E
of promotional increments, considering the differences in the nature
of duties and responsibilities performed by the Head Clerks and
Internal Auditors – Conclusion arrived at by the experts/Pay Anomaly
Committee not susceptible to judicial review – Courts are not to
interfere with the decision of the Government which is based on the
opinion of the experts – Furthermore, there was a conscious exercise F
of option to go as internal auditor, in view of the promotional
avenues available to the Internal Auditors and the high pay scales
available in the promotional position in comparison to the
promotional avenues available to the Head Clerks – There are
neither pleadings nor any material produced by the respondents to
G
prove that the nature of work performed by the Internal Auditors is
similar with that of the Head Clerks – Court has to keep in mind
that a mere difference in service conditions, does not amount to
discrimination – Unless there is complete identity between the two
posts, they should not be treated as equivalent to claim parity of
pay scale. H
289
290 SUPREME COURT REPORTS [2019] 2 S.C.R.

A Judicial review: Parity in pay scale sought by employees –
Interference by court – Held: Equation of posts and revision of pay
scale is within the domain of the Government – Matter should be
left to the discretion and expertise of the Pay Committee and the
Government to take the decision by considering the nature of duties
and responsibilities – Ordinarily, the courts will not enter upon the
B
task of job evaluation – Aggrieved employees claiming parity must
establish that they are unjustly treated by arbitrary action or
discriminated – Granting parity in pay scales depends upon the
comparative evaluation of job and equation of posts.
Allowing the appeals, the Court
C
HELD: 1.1 Equation of posts and revision of pay scale is
within the domain of the Government. The matter should be left
to the discretion and expertise of the Pay Committee and the
Government to take the decision on the scale of pay/revision of
pay scale by considering the nature of duties and responsibilities.
D Ordinarily, the courts will not enter upon the task of job evaluation
which is generally left to expert bodies like the Pay Commission
etc. The aggrieved employees claiming parity must establish that
they are unjustly treated by arbitrary action or discriminated.
Granting parity in pay scales depends upon the comparative
E evaluation of job and equation of posts. [Paras 14, 16] [302-A-B;
303-B]
1.2 Ordinarily, the scale of pay is fixed keeping in view the
several factors i.e. (i) method of recruitment; (ii) level at which
recruitment is made; (iii) the hierarchy of service in a given cadre;
F (iv) minimum educational/technical qualifications required; (v)
avenues of promotion; (vi) the nature of duties and
responsibilities; and (vii) employer’s capacity to pay, etc. The
burden of proof in establishing parity in pay scales and the nature
of duties and responsibilities is on the person claiming such right.
The person claiming parity must produce material before the court
G to prove that the nature of duties and functions are similar and
that they are entitled to parity of pay scales. [Para 20, 23] [305-E;
306-D-E]
1.3 The duties and nature of work of Head Clerks and
Internal Auditors are entirely different. Head Clerk works under
H XEN, Drawing and Disbursement Officer and there is only one
PUNJAB STATE POWER CORPORATION LIMITED v. RAJESH 291
KUMAR JINDAL & OTHERS

Head Clerk in the Division Office. Head Clerk is the Head of the A
establishment in the Divisional Office and total work of the
establishment is under the control of the Head Clerk. The Head
Clerk disburses the salaries and other payments of the Sub-
divisions and Division Offices and also maintains the leave and
other miscellaneous works for the Sub-divisions and the Division
B
Offices and discharges administrative functions and thus, has
more responsibilities. Per contra, Internal Auditor works under
the control of Chief Auditor. Duty of the Internal Auditor is to
audit the billing of the Revenue Department of the Sub-division
Office which includes billing of domestic supply to large supply.
Internal Auditors work in the Sub-division and there can be one C
or more Internal Auditors as per quantity of work. [Para 24]
[307-C-E]
1.4 It is the duty of an employee seeking parity of scale of
pay to prove that the educational qualifications required for both
the posts, mode of recruitment and the nature of work performed D
by them are one and the same. There are neither pleadings nor
any material produced by the respondents to prove that the nature
of work performed by the Internal Auditors is similar with that of
the Head Clerks. Merely on the ground that the cadre of Internal
Auditors are placed in Group XII along with the Head Clerks,
cannot be a ground for seeking parity of pay scale. [Para 25] E
[307-F-G]
1.5 Considering the post of Internal Auditors, the mode of
recruitment (55% from direct recruitment and 45% by promotion
from amongst ARAs/Circle Assistants), nature of work and the
promotional avenues available to the Internal Auditors, the Pay F
Anomaly Committee constituted by the appellant-Board took the
view that Internal Auditors be allowed revised scale of pay of
Rs.1800-3200. Considering the Pay Anomaly Committee Report
08/1990, appellant-Board revised the existing scale of pay of
Internal Auditors from Rs.1640-2925 to Rs.1800-3200 with the G
benefit of promotional increment to Circle Assistants/ARAs on
their promotion to the post of Internal Auditors. By the same
order, the existing scale of pay of the post of Head Clerks was
revised from Rs.1640-2925 to Rs.2000-3500. Considering the
grievances, the second pay Anomaly Committee took the view
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292 SUPREME COURT REPORTS [2019] 2 S.C.R.

A that having regard to the nature of duties and responsibilities
attached to the posts and skill involved in the performance of the
job, the nature of duties of Head Clerks and the Internal Auditors
and the promotional avenues available to them are entirely
different and that there is no parity of the categories of Revenue
Accountants/Divisional Accountants and Internal Auditors with
B
the Head Clerks and that they cannot claim parity. [Paras 27-29]
[308-C-D; 309-C-F]
1.7 Though the submission of the respondents that where
the employer has been maintaining parity in the pay scales of two
posts of Head Clerks and Internal Auditors over a period of time
C then, if the pay scale of one post is revised, the said parity of pay
scale is to be maintained and disturbing such parity would be
arbitrary and violative of the Article 14 and Article 16 of the
Constitution, appear to be attractive, but when considered in the
light of the well settled principles, there is no merit in the
D contention. Equation of posts and revision of pay scale is within
the domain of the Government. The matter should be left to the
discretion and expertise of the Pay Committee and the
Government to take the decision on the scale of pay/revision of
pay scale by considering the nature of duties and responsibilities.
The Pay Anomaly Committee has given elaborate reasons for
E revising the pay scales of the Head Clerks at Rs.2000-3500 and
Internal Auditors at Rs.1800-3200. The conclusion arrived at by
the experts/Pay Anomaly Committee are not susceptible to judicial
review and the courts are not to interfere with the decision of the
Government which is based on the opinion of the experts.
F [Para 31] [311-G-H; 312-A-B]
1.8 The Circle Assistants had been asked to exercise their
option to go in the channel of promotion of Head Clerks or in the
channel of Internal Auditors. Those who have chosen the channel
of Internal Auditors post on 03.10.1990 have consciously chosen
G to exercise the option of Internal Auditors being mindful of the
fact that the pay scale of the Head Clerks is higher than that of
Internal Auditors; yet they have chosen to exercise the option of
Internal Auditors. They cannot make a grievance about their
revised scale of pay at Rs.1800-3200 which is not on par with the
Head Clerks. Likewise, the Internal Auditors who have been
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PUNJAB STATE POWER CORPORATION LIMITED v. RAJESH 293
KUMAR JINDAL & OTHERS

directly recruited as Internal Auditors, have consciously applied A
for the post of Internal Auditors in the scale of pay of
Rs.1800-3200, cannot raise a plea claiming parity of pay scale as
that of the Head Clerks, since they have been directly recruited
as per advertisement against the post of Internal Auditors.
[Para 32, 33] [312-C-F]
B
1.9 Exercise of option for promotion as Internal Auditor
was a “conscious option”. Further, it was always open to the
appellant-Board to revise the scale of pay in terms of Regulation
3(g) of the Punjab State Electricity Board (Revised Pay)
Regulations, 1988. That apart, while recommending the different
pay scales for Head Clerks and Internal Auditors, the Pay Anomaly C
Committee was conscious about those Circle Assistants/ARAs
who have already exercised their option for promotion as Head
Clerks between 01.01.1986 to 03.10.1990. The Pay Anomaly
Committee in para (5.1) of its report expressed its view that the
option may be given to the employees who have been promoted D
between 01.01.1986 to 03.10.1990 as Head Clerks and Internal
Auditors for the post of Head Clerk, provided some vacancies
are available in the cadre of Head Clerk. The Pay Anomaly
Committee has also expressed its view that once they are
appointed as Head Clerks, they will be given the seniority as
would have been if they would have exercised their option as E
Head Clerks in the first instance on promotion from Circle
Assistants/ARAs. [Para 34, 35] [313-A-D]
1.10 The promotional avenues which are available to all
the Internal Auditors are far more in comparison to the
promotional avenues which are available to the Head Clerks. F
Therefore, for this reason also, option of Internal Auditors which
has been exercised by the Internal Auditors was a “conscious
option” exercised by them because of more promotional avenues
may available in the channel of Internal Auditors. That apart, the
pay scales available in the promotional channel for Internal G
Auditors are also sharply higher than the Head Clerks. From
submission of the appellant-Board, it is found that the increase
in the pay scale is much higher on promotion against the post in
the Internal Auditor promotional channel. Thus, for the said
reason also, the choice of Internal Auditors made by all the
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294 SUPREME COURT REPORTS [2019] 2 S.C.R.

A persons (including those who have exercised the option between
01.01.1986 to 03.10.1990) is a reasoned choice keeping in view
the greater promotional avenues and the higher pay scales which
are available. [Paras 36, 37] [314-A-E]
1.11 The direct recruited Internal Auditors are entitled to
B a time-bound promotional scale on completion of nine years of
service Rs.1900-3300 (unrevised) and sixteen years of service
Rs.2000-3500 (unrevised). However, no such time-bound
promotional scale is available to Head Clerks. Head Clerks are
not directly recruited and their appointment as Head Clerk is by
promotion only. [Para 38] [314-F-G]
C
1.12 The Court has to keep in mind that a mere difference
in service conditions, does not amount to discrimination. Unless
there is complete identity between the two posts, they should
not be treated as equivalent to claim parity of pay scale. No doubt,
Internal Auditors were earlier placed in the same group namely
D Group XII; but educational qualifications for the post of Head
Clerk and mode of recruitment are different. As submitted by
the appellant-Board, that in 1980, there were only four posts in
Group XII but subsequently some posts were added to Group
XII and in total fourteen posts. For all these posts, source and
E mode of recruitment, qualifications and nature of work are entirely
different. If the submission of the Internal Auditors for claiming
parity of pay scale with that of Head Clerks merely on the ground
that the post of Internal Auditor was placed in Group XII, then if
such parity of pay scale may have to be extended to all other
posts, it would have huge financial implication on the finance of
F the Board which is a service-oriented institution owing to the
consumers. [Para 39] [315-A-E]
1.13 The Single Judge proceeded under the erroneous
footing as if the case of Internal Auditors is covered by the case
put forth by Sub Fire Officers. The Single Judge did not keep in
G view the counter statement filed by the appellant-Board before
the High Court pointing out various distinguishing features of
Internal Auditors and Head Clerks on account of which no parity
could be granted to the Internal Auditors with the Head Clerks.

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PUNJAB STATE POWER CORPORATION LIMITED v. RAJESH 295
KUMAR JINDAL & OTHERS

The High Court also did not keep in view that the Pay Anomaly A
Committee did consider the demand of Internal Auditors and had
not accepted the demand in view of different nature of duties and
various other relevant factors. The Single Judge erred in
recording that the respondents were in the same category of “Sub
Fire Officers” within the same group which have been decided
B
by the earlier judgment dated 21.01.2010. [Para 40][315-F-H]
1.14 Merely because various different posts have been
categorized under Group XII, they cannot claim parity of pay scale
as that of the Head Clerk. All the more so, when the Internal
Auditors are appointed 55% by direct recruitment and 45% by C
promotion from Circle Assistant/Assistant Revenue Accountant.
The High Court did not keep in view that the duties, nature of
work and promotion channel of Head Clerks and Internal Auditors
are entirely different and that option to seek promotion apparently
as Internal Auditors was the “conscious exercise of option”, the
impugned judgment cannot be sustained and is set aside. D
[Para 41][316-A-B]
Kshetriya Kisan Gramin Bank v. D.B. Sharma and
Others (2001) 1 SCC 353 : [2000] 4 Suppl. SCR 638 ;
S.C. Chandra and Others v. State of Jharkhand and
Others (2007) 8 SCC 279 : [2007] 9 SCR 130 ; Union E
Territory Administration, Chandigarh and Others v.
Manju Mathur and Another (2011) 2 SCC 452 :
[2011] 1 SCR 883 ; State of Haryana and Others v.
Charanjit Singh and Others (2006) 9 SCC 321 : [2005]
4 Suppl. SCR 57 ; Hukum Chand Gupta v. Director F
General, Indian Council of Agricultural Research and
Others (2012) 12 SCC 666 : [2012] 8 SCR 831 ; Steel
Authority of India Limited and Others v. Dibyendu
Bhattacharya (2011) 11 SCC 122 : [2010] 13 SCR
429 ; Union of India and Another v. P.K. Roy and Others
AIR 1968 SC 850 : [1968] 2 SCR 186 ; Union of India G
and Another v. Manik Lal Banerjee (2006) 9 SCC
643 : [2006] 4 Suppl. SCR 66 - referred to.

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296 SUPREME COURT REPORTS [2019] 2 S.C.R.

A Case Law Reference

[2000] 4 Suppl. SCR 638 referred to Para 14
[2007] 9 SCR 130 referred to Para 15
B [2011] 1 SCR 883 referred to Para 15
[2005] 4 Suppl. SCR 57 referred to Para 15
[2012] 8 SCR 831 referred to Para 15
[2010] 13 SCR 429 referred to Para 16
C
[1968] 2 SCR 186 referred to Para 21
[2006] 4 Suppl. SCR 66 referred to Para 39

CIVIL APPELLATE JURISDICTION : Civil Appeal
D Nos.195-198 of 2019.
From the Judgment and Order dated 23.02.2012 of the High
Court of Punjab and Haryana at Chandigarh in LPA No. 264 of 2012
and Order dated 04.05.2012 in CM No. 1606 –LPA & 1607 –LPA of
2012 and RA No. LP-16 of 2012 in LPA No. 264 of 2012 .
E
Nidhesh Gupta, Sr. Adv., Pritpal Singh Nijjar, Ms. Vriti Gujral,
Ms. Pallavi Singh, A. Venayagam Balan, Advs. for the Appellants.
Saravpreet Singh, Tushar Bakshi, Shovit Singh, Naresh Bakshi,
Advs. for the Respondents.
F The Judgment of the Court was delivered by
R. BANUMATHI, J. 1. 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
G 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.
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PUNJAB STATE POWER CORPORATION LIMITED v. RAJESH 297
KUMAR JINDAL & OTHERS [R. BANUMATHI, J.]

3. The parity in the pay scales of two posts – Head Clerks and A
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, B
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 C
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 D
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 E
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 03.10.1990. 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 F
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 G
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
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298 SUPREME COURT REPORTS [2019] 2 S.C.R.

A 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
B
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
C 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,
D 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
E 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
F 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.
G 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

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KUMAR JINDAL & OTHERS [R. BANUMATHI, J.]

No.9294 of 1993 filed by the Sub Fire Officers by holding that till some A
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.
B
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) No.10896 of 2011
before this Court wherein, notice was issued and the same was pending
for consideration before this Court. C
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 D
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. E
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 F
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) No.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
G
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

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300 SUPREME COURT REPORTS [2019] 2 S.C.R.

A counsel appearing for the respondents. The learned Senior counsel Mr.
Nidhesh Gupta has inter alia made the following submissions:-
· Appellant-Board is competent to revise the pay scales in terms
of Regulation 3(g) of Punjab State Electricity Board (Revised
Pay) Regulations, 1988 in relation to any post specified in Column
B No.2 of the Schedule.
· Internal Auditors who have been directly recruited as Internal
Auditors against an open advertisement have consciously applied
for the post in the pay scale of Rs.1800-3200 cannot raise a
plea that they will have to be placed on par with Head Clerks.
C · Promotional avenues available to the Internal Auditors are far
more in comparison to the promotional avenues which are
available to the Head Clerks; the pay scales which are available
in the promotional position are sharply higher compared to the
Head Clerks and exercise of option as Internal Auditor is a
D “preferred option”.
· Internal Auditors cannot claim parity with Head Clerks on the
premise that they are in Group XII; though there were only four
cadre in the year 1988 in Group XII, seven more posts were
added in Group XII by Finance Circular No.44/89 dated
15.06.1989. Thereafter, vide Finance Circular No.45/89 dated
E
26.06.1989, there were further increase of seven posts in Group
XII and total fourteen posts were added to Group XII. For all
these posts, mode of recruitment, qualifications, nature of duties
and responsibilities are entirely different and merely because
the posts are mentioned in one cadre, they cannot claim parity
F of scale of pay.
· If parity of pay scale is to be extended to the posts merely on
the ground that they are categorised in one Group irrespective
of the mode of recruitment, qualifications, nature of duties and
responsibilities, it will lead to huge financial repercussion causing
G huge financial loss to PSEB which is a public service-oriented
institution.
12. Learned counsel for the respondents Mr. Saravpreet Singh
submitted 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
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KUMAR JINDAL & OTHERS [R. BANUMATHI, J.]

Head Clerks, irrespective of the promotional avenues available to the A
Internal Auditors. It was submitted that the Internal Auditors were always
treated on par with Head Clerks being the promotional post from the
post of Circle Assistants/ARAs and when so, there was no justification
to disturb the parity in the pay scales of two posts which were being
maintained for quite some time. Contention of the respondents is that
B
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 has disturbed the long-
standing parity of pay scales of the posts of Head Clerks and the Internal
Auditors. It is their contention that where the parity in the pay scales of C
two posts has been maintained over a period of time then, if the pay
scale of one post is revised, the said pay scale is to be maintained for
other post also and disturbing such parity would be arbitrary and violative
of the Article 14 and Article 16 of the Constitution of India. Much
arguments were advanced on the retrospective operation of the order
D
dated 03.10.1990 (w.e.f. 01.01.1986) contending that such retrospective
operation has caused serious prejudice to the Internal Auditors who have
been promoted between the year 1986 to 1990.
13. In the light of the submissions, several issues arise for
determination inter alia areas under:-
E
· Whether the Internal Auditors are entitled to claim parity of pay
scale with Head Clerks and Head Clerk–cum–Divisional
Accountants irrespective of the nature of recruitment,
qualifications and nature of duties and responsibilities?
· Can the Internal Auditors claim equity of pay scale, merely F
because they are in the same group (Class-XII) irrespective of
the nature of work and the internal qualification for recruitment.
In view of the promotional avenues available to the Internal
Auditors and the high pay scales which are available in the
promotional position, opting for Internal Auditors, is it not a
“preferred option”? G
· When there are about fourteen posts categorised in Group XII,
can Internal Auditors claim parity of pay scale with the Head
Clerks merely because they were categorised in Group XII?

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302 SUPREME COURT REPORTS [2019] 2 S.C.R.

A 14. Ordinarily, the courts will not enter upon the task of job
evaluation which is generally left to expert bodies like the Pay Commission
etc. The aggrieved employees claiming parity must establish that they
are unjustly treated by arbitrary action or discriminated. In Kshetriya
Kisan Gramin Bank v. D.B. Sharma and Others (2001) 1 SCC 353,
this Court held as under:-
B
“7. The next question that arises for consideration is, as to what
extent the High Court would be justified in exercise of its
extraordinary jurisdiction under Article 226 to interfere with the
findings of an expert body like the Equation Committee. In State
of U.P.and Others v.J.P. Chaurasia and Others (1989) 1 SCC
C 121, this Court unequivocally held that in the matter of equation of
posts or equation of pay, the same should be left to the Executive
Government, who can get it determined by expert bodies like the
Pay Commission, and such expert body would be the best judge
to evaluate the nature of duties and responsibilities of the posts
D and when such determination by a commission or committee is
made, the court should normally accept it and should not try to
tinker with such equivalence unless it is shown that it was made
with extraneous consideration….”
15. In S.C. Chandra and Others v. State of Jharkhand and
E Others (2007) 8 SCC 279, this Court held as under:-
“33. It may be mentioned that granting pay scales is a purely
executive function and hence the court should not interfere with
the same. It may have a cascading effect creating all kinds of
problems for the Government and authorities. Hence, the court
F should exercise judicial restraint and not interfere in such executive
function vide Indian Drugs & Pharmaceuticals Ltd. v. Workmen,
Indian Drugs & Pharmaceuticals Ltd. (2007) 1 SCC 408.
...........
35. In our opinion fixing pay scales by courts by applying the
G principle of equal pay for equal work upsets the high constitutional
principle of separation of powers between the three organs of the
State. Realising this, this Court has in recent years avoided applying
the principle of equal pay for equal work, unless there is complete
and wholesale identity between the two groups (and there too
the matter should be sent for examination by an Expert Committee
H
PUNJAB STATE POWER CORPORATION LIMITED v. RAJESH 303
KUMAR JINDAL & OTHERS [R. BANUMATHI, J.]

appointed by the Government instead of the court itself granting A
higher pay).
36. It is well settled by the Supreme Court that only because the
nature of work is the same, irrespective of educational qualification,
mode of appointment, experience and other relevant factors, the
principle of equal pay for equal work cannot apply vide Govt. of B
W.B. v. Tarun K. Roy and Others (2004) 1 SCC 347.”
The same view was reiterated in Union Territory Administration,
Chandigarh and Others v. Manju Mathur and Another (2011) 2 SCC
452; State of Haryana and Others v. Charanjit Singh and Others
(2006) 9 SCC 321 and in Hukum Chand Gupta v. Director General, C
Indian Council of Agricultural Research and Others (2012) 12 SCC
666.
16. Observing that granting parity in pay scales depends upon the
comparative evaluation of job and equation of posts, in Steel Authority
of India Limited and Others v. Dibyendu Bhattacharya (2011) 11 D
SCC 122, this Court held as under:-
“30. ……….. the law on the issue can be summarised to the
effect that parity of pay can be claimed by invoking the provisions
of Articles 14 and 39(d) of the Constitution of India by establishing
that the eligibility, mode of selection/recruitment, nature and quality E
of work and duties and effort, reliability, confidentiality, dexterity,
functional need and responsibilities and status of both the posts
are identical. The functions may be the same but the skills and
responsibilities may be really and substantially different. The other
post may not require any higher qualification, seniority or other F
like factors. Granting parity in pay scales depends upon the
comparative evaluation of job and equation of posts. The person
claiming parity, must plead necessary averments and prove that
all things are equal between the posts concerned. Such a complex
issue cannot be adjudicated by evaluating the affidavits filed by
the parties.” G

17. Mode of recruitment of Head Clerks and Internal
Auditors and the qualifications:- In the light of the above principles,
let us consider the claim of Internal Auditors claiming parity of pay scale
with Head Clerks. The mode of appointment and the minimum
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304 SUPREME COURT REPORTS [2019] 2 S.C.R.

A educational and other qualifications and experience required for Head
Clerk are as under:-
Sr. ame Method of Minimum Minimum Remarks
o. of Post appointment educational and Experience
other qualifications
12 Head By promotion After having Three year’s -
B Clerk from Circle qualified service as
Assistant/ARAs., Departmental A/Cs, Circle
who opt for Examination for Assistant/
promotion as Ministerial Asst.
Head Clerk Establishment, If not Revenue
already done or Accountant
specially expected
C
18. Internal Auditors have been promoted from the Ministerial
Cadre i.e. from the post of Circle Assistants/ARAs, who had opted for
the post of Internal Auditor were to be allowed the scales in the Ministerial
Cadre considering the post of UDC as induction post. The posts of
D Internal Auditors are filled by 55% from direct recruitment and 45% by
promotion who have opted for promotion to come to the Revenue Cadre.
The mode of appointment and the minimum educational and other
qualifications and experience required for the post of Internal Auditor
are as under:-
Sr. ame Method of Minimum Educational Minimum Remarks
E o. of Post Appointment and other qualification Experience
6. Internal i) By direct B.A. IInd class with
Auditor appointment Honours in Economics
(55% of or Statistics Commerce
vacancies) Three
OR year’s -
ii) By B.Com IInd Class service as
F promotion Circle
from amongst OR Assistant/A
ARAs/Circle RA/UDC
Assistants Intermediate Cost and put together
who opt for Works Accountant or out of
promotion as Intermediate Chartered which as
Internal Accountant. minimum
G Auditor (45% of one year
of vacancies) After having qualified service
Departmental Accounts shall be as
Examination for Circle
Ministerial Assistant/
Establishment, if not ARA.
already done or
H specially exempted.
PUNJAB STATE POWER CORPORATION LIMITED v. RAJESH 305
KUMAR JINDAL & OTHERS [R. BANUMATHI, J.]

19. The pay scale prior to 01.08.1963 of Head Clerks was higher A
than the pay scale of Internal Auditors i.e. pay scale of Head Clerks
was Rs.150-300 and pay scale of Internal Auditors was Rs.130-240.
The pay scale of Internal Auditors was Rs.130-240 and it was
subsequently revised to Rs.150-300 with effect from 01.08.1963 on par
with the Head Clerks. The pay scales of Head Clerks and Internal
B
Auditors remained intact upto the year-1986 revision. But the pay scale
of Head Clerks was revised from Rs.1640-2925 to Rs.2000-3500 on the
recommendation of the Pay Anomaly Committee formed by the Board
to review the anomalies in the pay scales of 1986 revision linking the
scale of Head Clerks with the Superintendent Grade-II under the State
Government. As discussed infra, the pay scale of Internal Auditors was C
revised from Rs.1640-2925 to Rs.1800-3200 and after nine years of
service to Rs.1880-3300 i.e. scale of Revenue Accountant and after
sixteen years of service Rs.2000-3500 as per Secretary (Finance) Office
Order No.244 dated 15.02.1991 considering the post of Internal Auditor
as induction post in the basic pay scale of Rs.1800-3200 for direct
D
recruits.
20. Burden of proof on the person claiming parity of pay
scale:-
Ordinarily, the scale of pay is fixed keeping in view the several
factors i.e. (i) method of recruitment; (ii) level at which recruitment is
E
made; (iii) the hierarchy of service in a given cadre; (iv) minimum
educational/technical qualifications required; (v) avenues of promotion;
(vi) the nature of duties and responsibilities; and (vii) employer’s capacity
to pay, etc.
21. It is well settled that for considering the equation of posts and
the issue of equivalence of posts, the following factors had been held to F
be determinative:-
(i) The nature and duties of a post;
(ii) The responsibilities and powers exercised by the officer holding
a post, the extent of territorial or other charge held or
responsibilities discharged; G
(iii) The minimum qualifications, if any, prescribed for recruitment
to the post; and
(iv) The salary of the post (vide Union of India and Another v.
P.K. Roy and Others AIR 1968 SC 850).
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306 SUPREME COURT REPORTS [2019] 2 S.C.R.

A 22. After referring to P.K. Roy’s case, this Court, in SAIL, held
as under:-
“25. In State of Maharashtraand Another v. Chandrakant
Anant Kulkarni and Others (1981) 4 SCC 130 and Vice-
Chancellor, L.N. Mithila University v. Dayanand Jha (1986)
B 3 SCC 7, a similar view has been reiterated observing that equal
status and nature and responsibilities of the duties attached to the
two posts have to be taken into consideration for equivalence of
the post. Similar view has been reiterated in E.P. Royappa v.
State of T.N. and Another (1974) 4 SCC 3 and Sub-Inspector
Rooplaland Another v. Lt. Governor Through Chief Secretary,
C Delhi and Others (2000) 1 SCC 644, wherein this Court following
the earlier judgment in P.K. Roy AIR 1968 SC 850 held that the
salary of the post alone may not be a determining factor, the other
three criterion should also be fulfilled.”
23. The burden of proof in establishing parity in pay scales and
D the nature of duties and responsibilities is on the person claiming such
right. The person claiming parity must produce material before the court
to prove that the nature of duties and functions are similar and that they
are entitled to parity of pay scales. After referring to number of judgments
and observing that it is the duty of an employee seeking parity of pay to
prove and establish that he had been discriminated against, this Court, in
E
SAIL, held as under:-
“22. It is the duty of an employee seeking parity of pay under
Article 39(d) of the Constitution of India to prove and establish
that he had been discriminated against, as the question of parity
has to be decided on consideration of various facts and statutory
F rules, etc. The doctrine of “equal pay for equal work” as enshrined
under Article 39(d) of the Constitution read with Article 14 thereof,
cannot be applied in a vacuum. The constitutional scheme
postulates equal pay for equal work for those who are equally
placed in all respects. The court must consider the factors like the
G source and mode of recruitment/appointment, the qualifications,
the nature of work, the value thereof, responsibilities, reliability,
experience, confidentiality, functional need, etc. In other words,
the equality clause can be invoked in the matter of pay scales
only when there is wholesome/wholesale identity between the
holders of two posts. The burden of establishing right and parity
H in employment is only on the person claiming such right. (Vide
PUNJAB STATE POWER CORPORATION LIMITED v. RAJESH 307
KUMAR JINDAL & OTHERS [R. BANUMATHI, J.]

U.P. State Sugar Corpn. Ltd. and Another v. Sant Raj Singh A
and Others (2006) 9 SCC 82, Union of Indiaand Another v.
Mahajabeen Akhtar (2008) 1 SCC 368, Union of India v.
Dineshan K.K (2008) 1 SCC 586, Union of Indiaand Others v.
Hiranmoy Sen and Others (2008) 1 SCC 630, Official
Liquidator v. Dayanand and Others (2008) 10 SCC 1, U.P.
B
SEBand Another v. Aziz Ahmad (2009) 2 SCC 606 and State of
M.P.and Others v. Ramesh Chandra Bajpai (2009) 13 SCC
635)”.
24. Nature of duties and responsibilities of Head Clerks
are different from the Internal Auditors:- The duties and nature of
work of Head Clerks and Internal Auditors are entirely different. Head C
Clerk works under XEN, Drawing and Disbursement Officer and there
is only one Head Clerk in the Division Office. Head Clerk is the Head of
the establishment in the Divisional Office and total work of the
establishment is under the control of the Head Clerk. The Head Clerk
disburses the salaries and other payments of the Sub-divisions and D
Division Offices and also maintains the leave and other miscellaneous
works for the Sub-divisions and the Division Offices and discharges
administrative functions and thus, has more responsibilities. Per contra,
Internal Auditor works under the control of Chief Auditor. Duty of the
Internal Auditor is to audit the billing of the Revenue Department of the
Sub-division Office which includes billing of domestic supply to large E
supply. Internal Auditors work in the Sub-division and there can be one
or more Internal Auditors as per quantity of work.
25. It is thus well settled that it is the duty of an employee seeking
parity of scale of pay to prove that the educational qualifications required
for both the posts, mode of recruitment and the nature of work performed F
by them are one and the same. There are neither pleadings nor any
material produced by the respondents to prove that the nature of work
performed by the Internal Auditors is similar with that of the Head Clerks.
In the writ petition, respondents have claimed parity of pay scale only on
the ground that they were categorised in Group XII along with the Head G
Clerks. Merely on the ground that the cadre of Internal Auditors are
placed in Group XII along with the Head Clerks, cannot be a ground for
seeking parity of pay scale.
26. Considering the differences in the nature of duties and
responsibilities performed by the Head Clerks and Internal Auditors,
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308 SUPREME COURT REPORTS [2019] 2 S.C.R.

A 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 are
categorised in Group XII along with Head Clerks, the Internal Auditors
cannot claim parity as the nature of duties and responsibilities of Internal
Auditors are different from Head Clerks.
B
27. Report of the Pay Anomaly Committee:- The Pay
Anomaly Committee was constituted by the appellant-Board vide its
Office Order No.179/Fin./PRC-1988 dated 22.08.1989 to consider the
pay anomalies of various categories of employees in the revised scale of
pay w.e.f. 01.01.1986. Considering the post of Internal Auditors, the
C mode of recruitment (55% from direct recruitment and 45% by promotion
from amongst ARAs/Circle Assistants), nature of work and the
promotional avenues available to the Internal Auditors, the Pay Anomaly
Committee took the view that Internal Auditors be allowed revised scale
of pay of Rs.1800-3200. The relevant portion of the report of the Pay
D Anomaly Committee reads as under:-
“Revenue/Accounts Wing:
“Presently the posts of Internal Auditors are being filled up
with 55% through direct recruitment and 45% by promotion from
amongst A.R.As/Circle Assistants. As per promotional channel
E available for Revenue/Accounts Cadre in the PSEB, A.R.As/Circle
Asstt are promoted either as Internal Auditor, Head Clerk or Head
Office Asst. as per option available for them. Internal Auditors
get promotion as Revenue Accountant and then finally as Revenue
Supdt. On accounts side, A.R.As/Circle Asstt., after passing SAS
F Part-I Examination, may at their option, get promotion as Divisional
Accountant. He can, however, opt immediately after passing the
SAS Part-I Examination to come over as Revenue Accountants
(which option shall be final). The Divisional Accountants get
promotion as SAS Accountant which post is to be handled by
SAS Parts-I & II passed personnels and involves higher duties
G and responsibilities. Since the Punjab Govt. has allowed revised
scale of Rs.1800-3200 for Circle Assistants and Rs.2000-3500
for S.A.S. Acctts. The Committee felt it necessary to devise
promotional scale of I.A.s R.As and Revenue Suptt. between the
revised scale allowed to Circle Assistants (Rs.1800-3200) and
H
PUNJAB STATE POWER CORPORATION LIMITED v. RAJESH 309
KUMAR JINDAL & OTHERS [R. BANUMATHI, J.]

SAS Accountants (Rs.2000-3500). It has, therefore been decided A
by the Committee to allow the revised scale as under:-

Internal Auditor Rs.1800-3200 with benefit of promotional
increment(s) being higher post than that of Circle
Asstt./Assistant Revenue Accountant as Circle
Asst./Assistant Revenue Accountants will get B
promotion as Internal Auditor in the same scale.

28. Considering the Pay Anomaly Committee Report 08/1990,
appellant-Board revised the existing scale of pay of Internal Auditors C
from Rs.1640-2925 to Rs.1800-3200 with the benefit of promotional
increment to Circle Assistants/ARAs on their promotion to the post of
Internal Auditors. By the same order, the existing scale of pay of the
post of Head Clerks was revised from Rs.1640-2925 to Rs.2000-3500.

29. Considering the grievances of its employees, second Pay D
Anomaly Committee was constituted vide Office Order No.48/ENG-
30(25) by the appellant-Board. PSEB Employees Federation raised the
grievance about the disparity in the pay scale of Head Clerks and Internal
Auditors. Considering the grievances, Pay Anomaly Committee took
the view that having regard to the nature of duties and responsibilities E
attached to the posts and skill involved in the performance of the job, the
nature of duties of Head Clerks and the Internal Auditors and the
promotional avenues available to them are entirely different and that
there is no parity of the categories of Revenue Accountants/Divisional
Accountants and Internal Auditors with the Head Clerks and that they
cannot claim parity. The relevant portion of the report of Second Pay F
Anomaly Committee reads as under:-

“4.1 The Committee has reviewed the position with regard to the
agenda put up to the Pay Anomaly Committee by the Secretary
Pay Revision Committee and nature of duties of each category of
G
employees, qualifications prescribed and time-bound scales allowed
to direct recruitees where the recruitment through direct
recruitment or by qualifying D.A.E. etc. and make its
recommendations/observation as under:-

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310 SUPREME COURT REPORTS [2019] 2 S.C.R.

A i) The Pay Anomaly Committee has already considered the
representations of the employees and did not recommend any
improvement in the scale of Divisional Accountant/Revenue
Accountant and Internal Auditor, that there is no parity of these
categories with Head Clerk as their nature of duties are different,
promotional channel is different and the induction posts has been
B
made for directly recruited 55% Internal Auditors and Revenue
Accountants who have been deployed as Revenue Acctt; after
they have passed SAS Part-I Examination. The Head Clerk is a
promotional post/category and they are genially promoted after
putting a long service of about twenty-five years in the Ministerial
C Cadre from the post of LDC/UDC, Circle Asstt;/A.R.A. etc.
whereas the Divisional Accountants are posted when they qualify
the D.A.E. of SAS Part-I. The Divisional Accountants have
also been allowed time-bound scales which is not available to
the post of Head Clerk.
D ii) On the promotion from Circle Asstt;/ARA to the post of H.O.
Assistant & Internal Auditor in the same scale of Rs.1800-3200,
benefit of promotional increments is available.
iii) ………
iv) In the Ministerial Cadre, the H.O. Cadre or amongst the Circle
E
Asstt;/ARA who opt for the post of H.O. Assistant. The post of
Head Clerk is filled up amongst the Circle Asstt;/ARAs who opt
for the post of Head Clerk. The post of Internal Auditor is filled
up 55% by direct recruitment and 45% amongst Circle Asstt;/
ARAs was opt for the post of Internal Auditors.
F v) The scale of H.O. Assistant and Head Clerks have been revised
on the pattern of Punjab Govt; and these categories are
traditionally linked with the State Govt; whereas the categories
of Internal Auditors, Revenue Acctt; Divisional Accountants are
exclusively PSEB categories.
G vi) Nature of duties of the Head Clerk and the Internal Auditor/
H.O. Assistant are not identical. So the Pay Anomaly Committee
separated the scales considering the nature of duties and
promotional channels etc;

H
PUNJAB STATE POWER CORPORATION LIMITED v. RAJESH 311
KUMAR JINDAL & OTHERS [R. BANUMATHI, J.]

5.1 The Committee is of the view that the option may be given to A
the employees who have been promoted between 01.01.1986 to
03.10.1990 (the date of office order vide which scale of Head
Clerk revised) as H.O. Assistant & Internal Auditor for the post
of Head Clerk, provided some vacancies are available in the cadre
of Head Clerk. Till the vacancy is falling due, they will be H.O.
B
Assistant or Internal Auditor, as the case may be, but on the
appointment as Head Clerk they will be given the seniority as
would have been if he would have exercised their option as Head
Clerk in the first instance on promotion from Circle Asstt;/ARA.
The financial implication would be nominal.
5.2 The Committee recommends that the scales already allowed C
by the Board on the recommendation of Pay Revision Committee
and further improved on the recommendation of Pay Anomaly
Committee may not be further improved otherwise this would
create number of complications, demand from other categories
for further revision of their pay scales also. The cases filed by the D
Divisional Accountant & Internal Auditors in the Punjab &
Haryana High Court be defended by the Board on the basis of
record and regulations of the Board….. [Underlining added].”
30. Internal Auditors cannot claim parity:- Grievance of the
respondents is that there was a parity of pay scale of the posts of Internal E
Auditors and Head Clerks for about two decades and while so, the order
dated 03.10.1990 revising the pay scale of Head Clerks from Rs.1640-
2925 to Rs.2000-3500 has disturbed the long-standing parity of pay scales
of the posts of Head Clerks and the Internal Auditors. It is their contention
that where the employer has been maintaining parity in the pay scales of
two posts over a period of time then, if the pay scale of one post is F
revised, the said parity of pay scale is to be maintained and disturbing
such parity would be arbitrary and violative of the Article 14 and Article
16 of the Constitution of India.
31. Though the above arguments of the respondents appear to be
attractive, when considered in the light of the well settled principles, we G
find no merit in the contention. Equation of posts and revision of pay
scale is within the domain of the Government. The matter should be left
to the discretion and expertise of the Pay Committee and the Government
to take the decision on the scale of pay/revision of pay scale by
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312 SUPREME COURT REPORTS [2019] 2 S.C.R.

A considering the nature of duties and responsibilities. As pointed out earlier,
the Pay Anomaly Committee has given elaborate reasons for revising
the pay scales of the Head Clerks at Rs.2000-3500 and Internal Auditors
at Rs.1800-3200. The conclusion arrived at by the experts/Pay Anomaly
Committee are not susceptible to judicial review and the courts are not
to interfere with the decision of the Government which is based on the
B
opinion of the experts.
32. Conscious exercise of option to go as Internal Auditors:-
On behalf of the appellant-Board, the learned Senior counsel has drawn
our attention to the various promotional avenues available to the Internal
Auditors and the sharp rise in the scale of pay in such promotional
C position. The Circle Assistants had been asked to exercise their option
to go in the channel of promotion of Head Clerks or in the channel of
Internal Auditors. Those who have chosen the channel of Internal Auditors
post on 03.10.1990 have consciously chosen to exercise the option of
Internal Auditors being mindful of the fact that the pay scale of the
D Head Clerks is higher than that of Internal Auditors; yet they have chosen
to exercise the option of Internal Auditors. Those who have exercised
their option for the post of Internal Auditors post on 03.10.1990, in our
considered view, cannot make a grievance about their revised scale of
pay at Rs.1800-3200 which is not on par with the Head Clerks.
E 33. Likewise, the Internal Auditors who have been directly recruited
as Internal Auditors, have consciously applied for the post of Internal
Auditors in the scale of pay of Rs.1800-3200, cannot raise a plea claiming
parity of pay scale as that of the Head Clerks, since they have been
directly recruited as per advertisement against the post of Internal
Auditors.
F
34. The grievance of the respondents is that since the order dated
03.10.1990 has been given retrospective effect w.e.f. 01.01.1986, those
of them who have exercised their option as Internal Auditors between
01.01.1986 to 03.10.1990 are deprived of the parity of pay scale. It was
further submitted that had such a disparity of pay scale between the
G Head Clerks and the Internal Auditors was in force from the year 1986
onwards, the Circle Assistants/ARAs would not have exercised their
option for promotion as Internal Auditors and they might have chosen to
exercise their option for promotion as Head Clerks. This contention though

H
PUNJAB STATE POWER CORPORATION LIMITED v. RAJESH 313
KUMAR JINDAL & OTHERS [R. BANUMATHI, J.]

appears to be attractive, by consideration of the same, it lacks merit for A
more than one reason. As rightly submitted by the learned Senior counsel
for the appellant-Board, exercise of option for promotion as Internal
Auditor was a “conscious option”. Further, it was always open to the
appellant-Board to revise the scale of pay in terms of Regulation 3(g) of
the Punjab State Electricity Board (Revised Pay) Regulations, 1988.
B
35. That apart, while recommending the different pay scales for
Head Clerks and Internal Auditors, the Pay Anomaly Committee was
conscious about those Circle Assistants/ARAs who have already
exercised their option for promotion as Head Clerks between 01.01.1986
to 03.10.1990. The Pay Anomaly Committee in para (5.1) of its report
expressed its view that the option may be given to the employees who C
have been promoted between 01.01.1986 to 03.10.1990 as Head Clerks
and Internal Auditors for the post of Head Clerk, provided some vacancies
are available in the cadre of Head Clerk. The Pay Anomaly Committee
has also expressed its view that once they are appointed as Head Clerks,
they will be given the seniority as would have been if they would have D
exercised their option as Head Clerks in the first instance on promotion
from Circle Assistants/ARAs. The grievance of the respondents in this
regard has been taken note by the Pay Anomaly Committee and as per
its view in para (5.1), the same is redressed.
36. Promotional avenues available to the Internal Auditors:- E
Promotional channels which are available against the post of Head Clerk,
Internal Auditor and Senior Assistant are as under:-
Head Clerk Internal Auditor Senior Assistant
Circle 1) Revenue Accountant 1)Superintendent Grade II
Superintendent
2)Revenue Superintendent 2)Superintendent Grade I F

3) Accounts Officer* 3) Under Secretary

4) Deputy Chief Accounts 4) Dy. Secretary
Officer*
5) Chief Accounts Officer* G
*Subject to passing of SAS
Part I and Part II
Examination

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314 SUPREME COURT REPORTS [2019] 2 S.C.R.

A By perusal of the above, it is seen that the promotional avenues
which are available to all the Internal Auditors are far more in comparison
to the promotional avenues which are available to the Head Clerks.
Therefore, for this reason also, option of Internal Auditors which has
been exercised by the Internal Auditors was a “conscious option”
exercised by them because of more promotional avenues may available
B
in the channel of Internal Auditors.
37. That apart, the pay scales which are available in the promotional
channel for Internal Auditors are also sharply higher than the Head Clerks.
A Head Clerk on promotion to a Circle Superintendent receives one
additional increment above the scale of Rs.10900- 34800 plus grade pay
C of Rs.5450 (i.e. available to a Head Clerk). However, in the Internal
Auditors channel, further promotion as Accounts Officer will be in the
pay scale of Rs.16650-39100 plus grade pay of Rs.5800. Thereafter, on
promotion as Deputy Chief Accounts Officer, he receives one further
increment and the grade pay increases to Rs.8500. Thereafter, on further
D promotion as Chief Accounts Officer, he goes into the scale of Rs.41300-
67000 plus grade pay of Rs.9600. Two senior-most Chief Accounts
Officers are put in the scale equivalent to Chief Engineer i.e. Rs.41300-
67000 plus grade pay of Rs.10500. From submission of the appellant-
Board, we find that the increase in the pay scale is much higher on
promotion against the post in the Internal Auditor promotional channel.
E Thus, for the said reason also, the choice of Internal Auditors made by
all the persons (including those who have exercised the option between
01.01.1986 to 03.10.1990) is a reasoned choice keeping in view the greater
promotional avenues and the higher pay scales which are available.
38. It is also relevant to note that insofar as the direct recruits are
F concerned, the direct recruited Internal Auditors are entitled to a time-
bound promotional scale on completion of nine and sixteen years of
service. Time-bound promotional scale of directly recruited Internal
Auditors after regular service of nine years is Rs.1900-3300 (unrevised)
and after completion of sixteen years of service is Rs.2000-3500
G (unrevised). However, no such time-bound promotional scale is available
to Head Clerks. Head Clerks are not directly recruited and their
appointment as Head Clerk is by promotion only.
39. The only ground urged by respondents-Internal Auditors is
that parity of pay scale between the Head Clerks and the Internal Auditors
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PUNJAB STATE POWER CORPORATION LIMITED v. RAJESH 315
KUMAR JINDAL & OTHERS [R. BANUMATHI, J.]

was maintained by the appellant-Board for more than two decades and A
while so, disturbing the parity is arbitrary and illegal. The Court has to
keep in mind that a mere difference in service conditions, does not amount
to discrimination. Unless there is complete identity between the two
posts, they should not be treated as equivalent to claim parity of pay
scale. No doubt, Internal Auditors were earlier placed in the same group
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namely Group XII; but educational qualifications for the post of Head
Clerk and mode of recruitment are different. As submitted by the learned
Senior Counsel for the appellant-Board, that in the year 1980, there were
only four posts in Group XII but subsequently some posts were added to
Group XII and the total fourteen posts which were added to Group XII
are:- Punjabi Teacher, Drawing Teacher, Hindi Teacher, D.P.Ed. Teacher, C
Master/Mistress, Science Teacher, Security Inspector, Modeller Divisional
Head Draftsman, Prosecuting Inspector (now Law Officer), Law
Officer Grade II, Medical Assistant, Librarian and Fire Officer, etc. For
all these posts, source and mode of recruitment, qualifications and nature
of work are entirely different. If the contention of the Internal Auditors
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for claiming parity of pay scale with that of Head Clerks merely on the
ground that the post of Internal Auditor was placed in Group XII, then if
such parity of pay scale may have to be extended to all other posts, it
would have huge financial implication on the finance of the Board which
is a service-oriented institution owing to the consumers. As held in Union
of India and Another v. Manik Lal Banerjee (2006) 9 SCC 643, “it is E
now a well settled principle of law that financial implication is a
relevant factor for accepting the revision of pay.”
40. The learned Single Judge proceeded under the erroneous footing
as if the case of Internal Auditors is covered by the case put forth by
Sub Fire Officers. The learned Single Judge did not keep in view the F
counter statement filed by the appellant-Board before the High Court
pointing out various distinguishing features of Internal Auditors and Head
Clerks on account of which no parity could be granted to the Internal
Auditors with the Head Clerks. The High Court also did not keep in
view that the Pay Anomaly Committee did consider the demand of
Internal Auditors and had not accepted the demand in view of different G
nature of duties and various other relevant factors. The learned Single
Judge erred in recording that the respondents were in the same category
of “Sub Fire Officers” within the same group which have been decided
by the earlier judgment dated 21.01.2010.
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316 SUPREME COURT REPORTS [2019] 2 S.C.R.

A 41. As discussed earlier, merely because various different posts
have been categorized under Group XII, they cannot claim parity of pay
scale as that of the Head Clerk. All the more so, when the Internal
Auditors are appointed 55% by direct recruitment and 45% by promotion
from Circle Assistant/Assistant Revenue Accountant. The High Court
did not keep in view that the duties, nature of work and promotion channel
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of Head Clerks and Internal Auditors are entirely different and that option
to seek promotion apparently as Internal Auditors was the “conscious
exercise of option”, the impugned judgment cannot be sustained and is
liable to be set aside.
42. In the result, the impugned judgment dated 23.02.2012 passed
C by the High Court of Punjab and Haryana at Chandigarh in LPA No.264
of 2012 and Order dated 04.05.2012 in the review petition are set aside
and these appeals are allowed. No costs.

Nidhi Jain Appeals allowed.
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F

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