Supreme Court of India
SUPERINTENDING ENGINEER AND ORS.versusA. SANKARAIAH
- Citation
- 2003 INSC 564
- Decided
- 17 October 2003
- Disposal
- Appeal(s) allowed
- Bench
- ASHOK BHAN
Holding
A redeployed employee is to be treated as a fresh entrant, and past service cannot be counted for seniority or for the benefit of the higher pay scale under the 1991 OM; the higher pay is payable only after completing five years of service in the CPWD.
Summary
The respondent was appointed Junior Engineer in 1980, later declared surplus and redeployed to the Central Public Works Department (CPWD) in 1988 under the Government's 1966 Office Memorandum (OM) which treated redeployed staff as fresh entrants for seniority purposes. The CPWD's 1991 OM provided a higher pay scale after five years of service in the entry grade, expressly stating that past service prior to redeployment would not be counted. The respondent claimed that his service in the previous department should be counted, and the Central Administrative Tribunal allowed his petition, granting the higher pay scale from 1988. On appeal, the Supreme Court examined whether the past service could be credited for seniority and pay benefits, emphasizing that treating redeployed employees as fresh entrants preserves seniority of existing staff and avoids anomalous pay differentials. The Court held that the respondent is entitled to the higher pay scale only after completing five years of service in CPWD, and his prior service cannot be counted. Consequently, the Tribunal's order was set aside and the appeal was allowed.
Issues considered
- Whether the past service of a retrenched employee redeployed under the 1966 OM can be counted for seniority and entitlement to higher pay under the 1991 OM.
- Whether the 1991 OM's five‑year service requirement includes service rendered before redeployment.
- Whether treating redeployed staff as fresh entrants is consistent with the policy intent of the OMs and avoids seniority anomalies.
- Whether the Tribunal's interpretation creates an anomalous situation where junior employees receive higher pay than seniors.
Subjects
retrenchmentredeploymentsenioritypay scaleoffice memorandumfresh entrantCentral Public Works Departmentservice lawCentral Administrative Tribunalanomalous seniority
Judgment
SUPERINTENDING ENGINEER AND ORS. A
v.
A. SANKARAIAH
•OCTOBER 17, 2003
[ASHOK BHAN. AND DR. AR. LAKSHMANAN, JJ.]
B
~
Service Law:
Retrenchment-On being declared surplus respondent redeployed as
a fresh entrant under 1966 Office Memorandum of Ce'?tral Government- C
1991 Office Memorandum providing higher pay scale on completion of 5
years service in present department-Benefit ofpast service for entitlement
of higher pay scale-Held, the purpose of the two Office Memorandums
was not to disturb the seniority of the existing employees-:-Hence, the past
service cannot be taken into account. D
The services of the respondent, who was appointed as Junior
Engineer on 30.5.1980 in Central Government, was retrenched on
being declared surplus. Government of India, by Office Memorandum
(OM) dated 25.2.1966, provided a scheme for redeployment of surplus
staff in other Government offices where vacancies exist. Under the E
scheme, the respondent was appointed as a Junior Engineer in CPWD
on 19.8.1988 as a fresh entrant. The letter' of appointment of the
respondent specifically stated that he would not be granted the benefit
of past service rendered by him prior to deployment for the purposes
of seniority. The Central Government, by OM dated 27.3.1991, provided F
that with effect from 1.1.1986, the Junior Engineers ofCPWD, on their
completion of 5 years service in the entry grade pay scale, may be
placed in the higher grade pay scale. The OM further clarified that the
benefit of past service rendered prior to deployment would not be
counted for fixation of revised pay scales. The CPWD under the OM G
granted revised pay scale to the respondent w.e.f. 19.8.1993 i.e. the date
when he completed 5 years of service in the CPWD. The res~ondent
filed a petition before Central Administrative Tribunal claiming
revised pay scale w.e.f. · 19.8.1988 by taking into account his past
service. The Tribunal allowed the petition of the respondent. The H
923
924 SUPREME COURT REPORTS [2003] SUPP. 4 S.C.R.
A review application filed by the appellant was dismissed by the Tribunal.
Hence the appeal.
Allowing the appeal, the Court
HELD: 1.1. Office Memorandum (OM) dated 25.2.1966, providing
B facility for re-deployment/alternative placement of the retrenched
employees in other Government Offices, specifically mentioned that re-
deployment of surplus staff was treated as transfer in public interest
for the specific purposes like transfer-TA, joining time, joining time
pay, leave and pension and for all other intents and purposes, the
C surplus staff on re-deployment would be treated as a fresh entrant in
the service of the new department. The purpose behind this OM was
not to disturb the seniority of the persons who were already working
in the equivalent post in that department. This fact is re-enforced by
the subsequent OM dated 16.8.1991 wherein it is mentioned that the
D intention behind the policy was that the benefit of past service could
not be allowed to re-depfoyed employees so as not to affect the interest
of the employees already senior in the office/organisation in which they
are re-deployed. The subsequent OM also clarified that the Junior
Engineers, re-deployed in the CPWD, are not entitled to the past
E service benefits for getting the benefit of two higher pay scales as the
same benefit was not admissible to the Junior Engineers, who are
senior to them. (929-D-F)
1.2. If the OM dated 27.3.1991 is understood and interpreted in
the manner it has bee11 done by the Tribunal, it would create an
F anomalous situation. Juniors in service would get higher pay than their
seniors. To avoid such a situation, the policy framed for the re-
deployment of the surplus staff made clear that the re-deployed staff
in the new department would be treated as a. fresh entrant and the
service rendered by him in the previous department would no~ be,
G counted towards seniority. [929-G, 930-A-B)
1.3 OM dated 27.3.1991 gives the benefit of revised higher pay
scale to its Junior Engineers on completion of 5 years of service in
CPWD in entry grade pay scale. The respondent could not be given
H for the benefit of working in the pre-revised scale in his previobs
SUPERINTENDING ENGINEER v. A. SANKARAIAH [BHAN. J.] 925
department. The emphasis in the OM was for the service of 5 years A
rendered in the CPWD and not for working in a particular grade in
his service career, as understood by the Tribunal. The respondent was
to be treated as fresh entrant and the benefit of the OM dated 27.3.1991
could be given to him on completion of 5 years of service in CPWD
from the date of joining the CPWD. In case the interpretation put by .B
the Tribunal is accepted, the very purpose of putting the term
mentioned in the letter of appointment that on re-deployment the
employee would not get the benefit of his past service would be
nullified. This would go against the express condition contained in the
policy as well as iii the letter of appointment to the respondent. It was C
not an appointment by way of transfer as has been understood by the
Tribunal. It was a fresh appointment for all intents and purposes. It
is held that the respondent would be entitled to the benefit of the OM
dated 27.3.1991 only after completion of 5 years of service as Junior
Engineer in the CPWD. [930-D-G)
D
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 4449 of
1997.
From the Judgment and Order dated 15.11.1996 of the Central
Administrative Tribunal at Hyderabad in RA. No. 88/96 in O.A. No. E
929195.
P.P. Malhotra; Ms. Rekha Pandy, V.K. Verma and D.S. Mahara for
the Appellants.
R. Santhanakrishnan, for Dr. Sunil Kumar for the Respondent.
F
The Judgment of the Court was delivered by
BHAN, J. : The respondent herein was appointed as Junior Engineer
in the Dandakamya Development Authority on 30.5.1980 in the pay scale G
of Rs. 425-700. Subsequently, he was declared surplus in the said project.
With a view to mitigate the hardship which would result from such
retrenchment of employees, a scheme for re-deployment of surplus staff
was formulated by the Government oflndia vide Ministry of Home Affairs,
O.M. No. 3/27/65-CSII dated 25.2.1966 to provide facility for re-deployment/ H
926 SUPREME COURT REPORTS [2003) SUPP. 4 S.C.R.
A alternative placement in other Government Offices where suitable vacancies
exist. While the re-deployment of surplus staff was treated as transfer in .
public interest for specific purposes like ttansfer-TA, joining time, joining
time pay, leave and pension, the surplus staff was treated as fresh entrants
in the new office for the purpose of seniority and seniority based matters
B in that office.
In view of the above O.M. respondent was offered an appointment
in CPWD as Junior Engineer which he jointed on 19 .8.1988 as a fresh
entrant. In the letter of appointment it was specifically stated that the
C appointment will take effect from the date he actually joins the duty. That
he would be on probation for a period of 2 years and required to pass a
departmental ex~ination in simple accounts within two years from the
date of appointrrient and in the event of his failure to pass the said test
within the stipulated time the second increment and future increment would
be withheld till he passes the test. The appointment was temporary and
D liable to be terminated at any time by giving one month's notice. That he
would not be granted the benefit of past service rendered by him prior to
deployment for the purposes of seniority.
Directorate General of Works, Central Public Works Department vide
E O.M. No. A-l 1014/l/91EC NI dated 27.3.1991 took a decision that with
effect from 1.1.1986 the Junior Engineers (Civil and Electrical) and the
Section Officers (Horticulture) of CPWD on their completion of 5 years
service in the entry grade pay scale of Rs. 1400-40-1800-EB-50-2300 (Pre-
revised pay scale of Rs. 425-15-500-EB-15-500-20-700) may be placed in
F the higher grade pay scale of'Rs. 1640-60-2600-EB-75-2900 subject to
the rejection of unfit and vigilance clearance by the DPC. In order
to clarify that the benefit of past service rendered prior to deployment
would not be counted for fixation of revised pay scales as per OM dated
27.3.1991 the Directorate General of Works, Central Public Works
Department, issued O.M. No. A-26017/4/91/EC NI dated 16.8.1991
G clarifying that the Junior Engineers re-deployed in the CPWD shall not be
entitled to take the benefit of past service for getting the benefit of two
higher pay scales vide Memo dated 27.3.1S'91 as the same benefit was n?t
admissible to the CPWD Junior Engineers who were senior to them with
less than 5/15 years service. 'Relevant extract of O.M. dated 16.8.1991 is
H reproduced below:
SUPERINTENDING ENGINEER v. A. SANKARAIAH [BHAN, J.] 927
"The matter has been considered and it has been observed A
that according to the instructions contained in the scheme of
re-deployed staff issued by the Government from time to
time the re-deployed staff are treated as fresh entrants in the
new offices/organisations for the purpose of fixing their
seniority and they are r-laced below the employees who have B
already joined the new offices/organisations wherein they
count the date of their seniority from the date of joining/
confirmation. The intention behind the policy is that the
benefit of past service should be allowed to them where it
does not adversely affect the interest of the employees
already senior in the office/organisation to which they are C
re-deployed. It has, therefore, been decided that the Junior
Engineer's re-deployed in the CPWD are not entitled to the
past service benefit for getting the benefit of the two higher
pay scales vide this Directorate O.M. No. A 11()14/1/91/EC/
VI dated 27.3.1991 as the same benefit is not admissible to D
the CPWD Junior Engineers who are senior to them with less
than 5/15 years service."
O.M. dated 27.3.1991 was to work out as under:
'
(a) Rs. 1400-40-1800-EB-50-2300 - At the entry stage. E
(b) Rs. 1640-60-2600-EB-75-2900-after completion of5 years
of service in the entry grade effective from 1.1.1996.
(c) Rs. 2000-60-2300-EB-75-3 200-100-3500 - After completion F
of 15 years service effect from 1.1.1991.
The Department · of CPWD being of the opinion that on re-
deployment the respondent joined the CPWD as Junior Engineer (Civil)
on 19.8.1988 as a fresh entrant became eligible for the grant ofhighe1 scale G
of pay of Rs. 1640-2900 after completion of 5 years in CPWD, gave him
the benefit of higher pay scale on 19.8.1993, i.e., on completion of 5 years
of service in the CPWD.
Respondent feeling aggrieved against the order granting the benefit
of higher pay scale w.e.f. 19.8.1993 filed O.A. No. 929of1995 before the H
928 SUPREME COURT REPORTS (2003] SUPP. 4 S.C.R.
A Central Administrative Tribunal, Hyderabad Bench, hereinafter referred to
as "the Tribunal", claiming that his past service in Dandakamya Development
Authority should have been taken into account for fixation of higher pay
scale w.e.f. 19.8.1988. Appellant in its written statement took the stand
that for the eligibility of higher pay scale the period of service rendered
B in the Dandakarnya Development Authority could not be counted for
giving higher pay scale. For fixation higher scale of pay as per O.M. dated
27.3.1991, the only service, which could be counted was the service
rendered in the CPWD.
Tribunal following the judgment and order in OA No. 2241 of 1991
C allowed the OA filed by the respondent. Against the order in OA No. 2241
of 1991 the appellant had filed special leave petition ... CCP 328 of 1993
(Union of India v. R.S. Saini) in this Court but the same was dismissed
on the ground of delay on 30.11.1993. Since CCP 328 of 1993 in OA
No. 2241 of 1991 was not disposed of on merits the appellant filed Special
D Leave Petition No. 421 of 1996 in this Court against the judgment and
order in OA No. 929of1995 (filed by the respondent) which was disposed
of on 10.9.1996 by observing that since this Court had not disposed of the
special leave petition ... CCP 328 of 1993 in OA No. 2241 of 1991 on
merits the decision rendered by this Court could not be taken as a
E precedent. The special leave petition was disposed of reserving liberty
with the appellant to file a review before the Tribunal within a period of
30 days. Thereafter the appellant filed Review Application No. 88 of 1996
before the Tribunal which has been dismissed by the impugned order. It
was held that:
F "It clearly appears to us that the provisions of OM dated
27 .2.1991 which speak of the requirement of completed 5
years of service in the grade mean the entry into the pay scale
of Rs. 1400-2300 including pre-revised scale Rs. 425-700
and it has no reference to the post in which the employee
G has been re-deployed or .to the P,OSt he was holding earlier
under the Dandakamya ·Project. Admittedly the applicant
was in that_ pay· scale at any rate since prior to 1983 and he
had completed 5 years in that grade which was the entry
grade by the date on which he was re-deployed i.e. on
19.8.1988. In our view it would not be correct interpretation
H
SUPERINTENDING ENGINEER v. A. SANKARAIAH [BHAN, .I] 929
to be placed on the OM to read tbe length of period of5 years A
as from the date of entry in the redeployed post. The
applicant thus having fulfilled the requisite condition to get
the scale of pay of Rs. 1640-2900 w.e.f. 19.8.1988 as held
in the order under the review we see no reason to hold that
there is an error apparent on the fact of the record or even B
otherwise any .legal error therein. "
Aggrieved by the order passed by the Tribunal the appellant has
come up in this appeal.
Learned counsel for the parties have been heard at length. C
In O.M. dated 25.2.1966 providing facility for re-deployment/
alternative placement of the retrenched employees in other Government
Offices it was specifically mentioned that re-deployment of surplus staff
was treated as transfer in public interest for the specific purposes like D
transfer-TA, joining time, joining time pay, leave and pension, but, for
all other intents and purposes, the surplus staff on re-deployment would
be treated as a fresh e;:itrant in the service of the new department. The
purpose behind this was not to disturb the seniority of the persons who were
already working in the equivalent post in that department. This fact is re-
enforced by the subsequent O.M. dated 16.8.1991 wherein it is mentioned E
that the intention behind the policy was that the benefit of past service
could not be allowed to re-deployed employees so as not to affect the
interest of the employees already senior in the office/organisation in which
they are re-deployed. O.M. dated 16.8.1991 was issued to clarify that the
Junior Engineers re-deployed in the CPWD are not entitled to the past F
service benefit for getting the benefit of two higher pay scales as the same
benefit was not admissible to the CPWD Junior Engineers who are senior
to them with less than 5115 years service.
If the OM dated 27.3.1991 is understood and interpreted in the
manner it has been done by the Tribunal, it would create an anomalous G
situation. Juniors in service would get higher pay than their seniors. For
instance, a person recmited fresh from the open market in the service of
CPWD as a Junior Engineer in the year 1987 would get the benefit of
higher grade in terms of O.M. dated 27 .3 .1991 in the year 1992 whereas
the re-deployed Junior Engineer who joined the CPWD in the year 1988 H
930 SUPREME COURT REPORTS [2003] SUPP. 4 S.C.R.
A and placed junior to the µtrson who joined in the year 1987, would get
the benefit of higher scale of pay under the O.M. on the basis of ihe past .
.service rendered by him earlier to the person senior to him. Precisely to
avoid such a situation, in the poli¥Y framed for the re-deployment of the
surplus staff, it was made clear that the re-deployed staff in the new
B department would be treated as. a fresh entrant and the service rendered by
him in the previous department.would not be C5JUnted towards seniority.
Appointment on deployment' was to be treated as on transfer only for
specified purposes like transfer-TA, joining time, joining time pay, leave
and pension only. The Tribunal while interpreting the O.M. dated27.3. l991
held that respondent's past service in Dandakamya Development Authority
C was to be counted for fixation the higher pay scale, without considering
the fact that respondent's re-deployment in the CPWD w.e.f. 19.8.1988 was
totally a fresh appointment.
O.M.dated 27 .3 .1991 was issued by the Department of CPWD to give
D the benefit of higher pay-scale/revised pay scale to its Junior Engineers on
completion of 5 years of service in CPWD for the entry grade pay scale
of Rs. 1400-40-1800-EB-50-2300 (Pre-revised pay scale of Rs. 425-15-
500-EB-15-500-20-700) which could not be given to an employee who was
taken on re-deployment in the CPWD who was working in the pre-revised
pay scale of Rs. 425-15-500-EB-l 5-500-20-700, as they had not completed
E 5 years of service in the department of CPWD. The benefit of revised pay
scale could be given only on completion of 5 years of service in the CPWD
in the entry grade pay scale of Rs. 1400-40-1800-EB-50-2300. Respondent
could not be ~iven for the benefit of working in the pre-revised scale of
Rs. 425-15-500-EB-15-500-20-700 in his previous department. The
. F emphasis in the O.M. was for the service of 5 years rendered in the CPWD
and not for working in a particular grade in his service career, as has been
understood by the Tribunal. Tribunal has proceeded as if this· benefit was
given to a person who had rendered service in a particular grade in his
service career including some other department. In our opinion, in the
G O.M. the emphasis was to give benefit to the Junior Engineers working in
the CPWD of a higher grade on their completion of 5 years of service. The
respondent was to be treated as a fresh entrant and the benefit of the O.M.
dated 27.3 .1991 could be given to him on comp.letion of 5 years of service
in CP'W'D from the date of his joining the CPWD.
H On re-deployment the respondent joined the service in the CPWD as
, ...
SUPERINTENDING ENGINEER v. A. SANK.ARAIAH [BHAN, J.] 931
Junior Engineer on 19.8.1988 as a fresh entrant and in the offer of A
appointment dated 11.8.1988 it was clearly stipulated that his re-deployment
in the CPWD will not get the benefit of his past service in Dandakamya
Development Authority and his seniority in CPWD will be reckoned from
the date of his actual joining the CPWD as Junior Engineer. He had
accepted this offer and joined the Junior Engineer in terms of letter of re- B
deployment in the CPWD. In case the interpretation put by the Tribunal
b accepted the very purpose of putting the term mentioned in the letter of
appointment that on re-deployment the employee would not get the benefit
of his past service would be nullified. This would go against the express
condition contained in the policy as well as in the letter of appointment C
to the respondent. It was not an appointment by way of transfer as has
been understood by the Tribunal. It was a fresh appointment for all intents
and purposes but in order to give certain specified benefits like transfer-
T A, joining time, joining time pay, leave and pension the re-deployment
was treated as transfer in public interest and not for any other purpose.
D
Since the respondent had not completed 5 years of service in CPWD
in terms of 0.M. dated 27.3.1991 he could not claim the benefit of
O.M.dated 27 .3 .1991 from the d~te he joined the CPWD. He could claim
the benefit only after completion of 5 years of service in the CPWD. It
has to be appreciated that re-deployment of the respondent in the CPWD E
was only with a view to mitigate the hardship caused to him by his
retrenchment from service in Dandakamya Development Authority project.
It was to protect his retrenchment from service. As per the terms of the
policy and the letter of appointment, his re-deployment in the CPWD was
to be treated as a fresh employment. His past service rendered in
.. Dandakamya Development Authority could not be counted for extending F
the benefit of O.M. dated 27.3.1991.
For the reasons stated above, the appeal is accepted and the order of
the Tribunal is set aside. It is held that the respondent would be entitled
to the benefit of the O.M. dated 27.3.1991 only after completion of5 years G
of service as Junior Engineer in the CPWD. There will be no order as to
costs.
B.S. Appeal allowed.
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