Supreme Court Dismisses Union of India's Appeal in Pay Fixation Dispute Under CCS (Revised Pay) Rules, 2008. Rule 11 Applies When Employee Opts for Revised Pay from Date of ACP Upgradation, Not Rule 7.

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Case Note & Summary

The case involves a dispute over the correct rule for pay fixation under the Central Civil Services (Revised Pay) Rules, 2008. The respondent, Raj Kumar Anand, was appointed as an Assistant Teacher in 1994 and promoted to Trained Graduate Teacher (TGT) in 2007. He was granted an upgraded pay scale under the Assured Career Progression (ACP) scheme w.e.f. 10.8.2006. After the 6th Central Pay Commission recommendations were implemented via the CCS (Revised Pay) Rules, 2008, notified on 29.8.2008, the respondent opted for revision of pay from the date of ACP upgradation (10.8.2006). The authorities fixed his pay under Rule 7 of the Rules, but the respondent contended that Rule 11 should apply. He filed an Original Application before the Central Administrative Tribunal, which initially directed a speaking order, but later dismissed his application and review. The Delhi High Court allowed his writ petition, holding that Rule 11 was applicable. The Union of India appealed to the Supreme Court. The Supreme Court examined Rules 5, 7, and 11 of the 2008 Rules. It noted that the first proviso to Rule 5 allows an employee to continue in the existing scale until the next increment, and the second proviso permits an employee placed in a higher pay scale between 1.1.2006 and the notification date due to promotion or upgradation to elect to switch to the revised pay structure from the date of such promotion or upgradation. Since the respondent's ACP upgradation occurred between these dates and he opted for revision from that date, Rule 11, which deals with fixation of pay for those who continue in the existing scale and later switch to the revised structure, was applicable. Rule 7, which deals with initial fixation as on 1.1.2006, was not applicable. The Court distinguished Note 2A of Rule 7, which applies only to upgradations recommended by the 6th CPC, not ACP upgradations. The Supreme Court dismissed the appeals, affirming the High Court's decision.

Headnote

A) Service Law - Pay Fixation - Central Civil Services (Revised Pay) Rules, 2008 - Rule 7 vs Rule 11 - ACP Upgradation - The dispute pertained to whether the pay of a teacher who received an upgraded pay scale under the ACP scheme w.e.f. 10.8.2006 (between 1.1.2006 and 29.8.2008) and opted for revised pay from that date should be fixed under Rule 7 or Rule 11 of the 2008 Rules. The Supreme Court held that Rule 11 applies because the option was exercised from the date of upgradation under ACP, which is not an upgradation recommended by the 6th CPC covered by Note 2A of Rule 7. The High Court's decision was upheld. (Paras 1-7)

B) Service Law - Pay Fixation - Note 2A of Rule 7 - Applicability - Note 2A of Rule 7 applies only where a post has been upgraded as a result of the recommendations of the Sixth CPC as indicated in Part B or Part C of the First Schedule to the Rules. Since the ACP upgradation is a different scheme, Note 2A is not attracted. (Paras 6-7)

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Issue of Consideration

Whether the pay fixation of a government servant who was granted an upgraded pay scale under the ACP scheme between 1.1.2006 and the date of notification of the CCS (Revised Pay) Rules, 2008, and who opted for revision of pay from the date of such upgradation, should be done under Rule 7 or Rule 11 of the said Rules.

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Final Decision

The Supreme Court dismissed the appeals, upholding the High Court's judgment that the respondent's pay fixation should be done under Rule 11 of the CCS (Revised Pay) Rules, 2008, and not under Rule 7.

Law Points

  • Pay fixation under Rule 11 of CCS (Revised Pay) Rules
  • 2008 applies when an employee opts for revised pay structure from the date of upgradation under ACP scheme
  • not Rule 7
  • Note 2A of Rule 7 applies only to upgradations recommended by the 6th CPC
  • not ACP upgradations.
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Case Details

2019 LawText (SC) (3) 72

Civil Appeal No. 3052/2019 (@ SLP (C) No. 26336/2018) with Civil Appeal Nos. 3053-3054/2019

2019-03-14

Mr. Vikramjit Banerjee (for appellants), Respondent appeared in person

Union of India & Ors.

Raj Kumar Anand & Ors.

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Nature of Litigation

Civil appeal against High Court judgment allowing writ petition for correct pay fixation under CCS (Revised Pay) Rules, 2008.

Remedy Sought

The respondent sought correct fixation of pay under Rule 11 instead of Rule 7 of the CCS (Revised Pay) Rules, 2008.

Filing Reason

The respondent's pay was fixed under Rule 7 instead of Rule 11 after he opted for revised pay from the date of ACP upgradation.

Previous Decisions

Central Administrative Tribunal dismissed the original application and review; High Court allowed the writ petition holding Rule 11 applicable.

Issues

Whether pay fixation of a government servant who opted for revised pay from the date of ACP upgradation (between 1.1.2006 and notification date) should be under Rule 7 or Rule 11 of CCS (Revised Pay) Rules, 2008.

Submissions/Arguments

Appellant (Union of India): Rule 7 with Note 2A applies; fixation was correct; High Court erred in applying Rule 11. Relied on Union of India v. K.V. Rama Raju. Respondent (in person): Once option exercised from date of ACP upgradation, Rule 11 applies; High Court decision correct.

Ratio Decidendi

Where a government servant is granted an upgraded pay scale under the ACP scheme between 1.1.2006 and the date of notification of the CCS (Revised Pay) Rules, 2008, and opts for revision of pay from the date of such upgradation, pay fixation must be done under Rule 11 of the Rules, as Rule 7 (including Note 2A) applies only to upgradations recommended by the 6th CPC, not ACP upgradations.

Judgment Excerpts

It is Rule 11 which is applicable. Rule 7 deals with the fixation of initial pay in the revised pay structure as per the 6th Central Pay Commission. Note 2A to Rule 7 relied upon by the appellants makes it vivid that where a pay scale has been upgraded on the recommendation of Central Pay Commission... the fixation has to be made under Rule 7. However, it was not the case of upgradation of the post as a result of the recommendation of the 6th Pay Commission... but it was under ACP scheme which is a different scheme.

Procedural History

The respondent filed OA No. 2475/2011 before CAT, which directed a speaking order on 17.5.2012. Representation rejected on 24.7.2012 and 7.8.2012. Respondent filed another OA, which was dismissed along with review. Writ Petition filed before Delhi High Court, allowed on 18.5.2018. Union of India appealed to Supreme Court via SLP, which was granted and appeals dismissed.

Acts & Sections

  • Central Civil Services (Revised Pay) Rules, 2008: Rule 5, Rule 7, Rule 11, Note 2A of Rule 7
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Supreme Court Supreme Court Dismisses Union of India's Appeal in Pay Fixation Dispute Under CCS (Revised Pay) Rules, 2008. Rule 11 Applies When Employee Opts for Revised Pay from Date of ACP Upgradation, Not Rule 7.
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