Case Note & Summary
The background of the dispute involved the Karnataka Power Transmission Corporation Limited (the corporation) as the appellant and its employees, appointed as Assistant Executive Engineers (Electrical) on 06.10.2007, as the respondents. The facts revealed that the corporation issued a D.O./order dated 27.09.2006 revising pay scales with effect from 01.04.2003, and a further order dated 02.06.2008 granted approval for revision of pay scales by 12% (10% + 2%) effective from 01.04.2003, with the additional 2% contingent on achieving performance targets from 01.04.2009. The respondents, appointed in 2007, were not granted the benefit of the additional 2% pay revision, leading them to file a writ petition before the learned Single Judge. The legal issue centered on whether the respondents were entitled to the revised pay scales, including the 2% hike, from their date of appointment despite the retrospective effective date and performance conditions. The corporation argued that the revision was conditional and not applicable to later appointees, while the respondents contended that the revision was retrospective and should apply uniformly. The court's analysis found that the pay revision was intended to be retrospective from 01.04.2003 and that the performance condition for the 2% hike applied only from 01.04.2009, not affecting the basic revision. The court reasoned that denying the benefit to employees appointed after 2003 would be discriminatory and contrary to the principles of equality in service law. The decision upheld the judgment of the Division Bench of the High Court, which had affirmed the Single Judge's direction for payment of revised pay scales at Rs. 9,745/- basic per month with effect from the respondents' date of appointment, including arrears with interest, and dismissed the corporation's appeal.
Headnote
A) Service Law - Pay Revision - Retrospective Application - Karnataka Power Transmission Corporation Limited Pay Orders - The dispute involved employees appointed as Assistant Executive Engineers in 2007 seeking revised pay scales effective from 2003, including an additional 2% hike. The Supreme Court held that the pay revision was retrospective and not conditional on performance targets for these employees, so they were entitled to the benefit from their appointment date. The Court dismissed the corporation's appeal and upheld the High Court's direction for payment of revised pay at Rs. 9,745/- basic per month with arrears and interest (Paras 1-3).
Issue of Consideration
Whether the original writ petitioners (respondents) were entitled to the benefit of revised pay scales with effect from their date of appointment, including the additional 2% hike, despite being appointed after the effective date of the revision order
Final Decision
Supreme Court dismissed the appeal, upheld the High Court's judgment, and directed payment of revised pay scales at Rs. 9,745/- basic per month with effect from the respondents' date of appointment, including arrears with interest
Law Points
- Pay revision benefits must be extended to all employees appointed after the effective date if the revision is retrospective and not conditional on performance targets
- principles of equality and non-discrimination in service law apply
- courts can direct payment of arrears with interest for delayed implementation
