scellaneous Petition No 10864 of 1989
IN Writ Petition No 13044 of 1984 Etc
Under Article 32 of the Constitution of India
Kapil Sibal Additional Solicitor General Dr LM Singhvi Gobinda Mukhoty KK Venugopal Ms Mridula Ray CV Subba Rao PR Seetharaman Ranjit Kumar Asru Bose Gulab Chandra Sarva Mitter R Venkataramani C Ramesh Ms Urmila Sirur MN Krishnamani Sunder Rao KR Nagara ja VN Ganpule JD Jain and Chandran Petitioner in person for the appearing parties
The Judgment of the Court was delivered by SAWANT J
In all these cases the relief claimed is the implementation of the recommendations of the High Power Pay Committee in respect of the emoluments to be paid to the officers belonging to Class I and Class II service employed in different public sector enterprises
Earlier these employees had approached various High Courts and this Court against the decision of the Central Government to switch them over to the Industrial Dearness Allowance pattern and the incidental steps taken to enforce the said decision
The main reliefs claimed in those peti tions were that i the employees should be permitted to continue to draw the salary in the scales of pay applicable to them along with the Central Dearness Allowance ii they should be granted all the benefits of pay revision and revision of other allowances which may be announced from time to time by the Central Government for its employees and iii there should be no discrimination between them and those directly employed by the Central Government and that they should get the same scales of pay and 1008 allowances for the same types of jobs in accordance with the principle of equal pay for equal work
During the course of the hearing on August 24 1984 this Court ordered the payment of three additional dearness allowance instalments from August 1 1983 October 1 1983 and November 1 1983 to those employees who were on Central pattern of pay scales and dearness allowance subject to an individual undertaking by each employee that in case such payment resulted in the employee receiving an excess such excess would be recovered from him from future payments if the petitions failed
On February 19 1986 the Court further ordered that all employees of public sector enterprises following the Central dearness allowance pattern and drawing a basic pay of Rs 1000 or less will be entitled to interim reliefs on the same basis and scale as the Government of India employees wef January 1 1986
This was also allowed subject to similar undertaking given by each employee
When the matters were posted for hearing on March 14 1986 the Central Government expressed its willingness to refer to High Power Pay Committee the question regarding the revision of payscales additional dearness allowance com pensatory and other allowances and such other incidental aspects relating to the employees governed by the Central pattern of pay scales and dearness allowance
Accordingly the Court directed the Central Government to constitute a High Power Pay Committee to go into various aspects relating to pay scales and other incidental matters including interim relief to the said employees viz the employees governed by the Central Government pattern of pay scales and dearness allowance
The terms of reference of the High Power Pay Committee were as follows I To examine the present structure of emoluments and conditions of service taking into account the total packet of benefits in cash and kind available to the workers clerical staff supervisors and officers below the Board level following the Central DA pattern and to suggest changes which may be desirable and feasible
To examine the variety of allowances and benefits in kind that are presently available to the above noted employ ees in addition to pay and DA and suggest rationalisation simplification thereof with a view to promoting efficiency
1009 III
To examine matters relating to grant of interim relief to the employees of all such public enterprises belonging to the Government of India and following the Central DA pattern who are drawing basic pay above Rs 1000 per month and grant necessary relief to them if called for
While making recommendations on the above points the Committee would keep in view other related factors such as scales of pay DA and allowances prevailing in other public sector undertakings on Industrial DA formula economic conditions in the country resources available at the dis posal of these public enterprises
The Committee submitted its recommendations by its Final Report of November 2 1988
However the Central Government did not act on the said report expeditiously and hence the present writ petitions were filed on various dates praying for relief in the form of a direction to the Central Government to implement the recommendations made in the Report
The Government took several adjournments to disclose its stand on the Report and has now ultimately come out with proposals which are incorporated in the additional affidavit dated 17th April 1990 filed on behalf of the Union of India by Shri Suresh Kumar Additional Secretary in the Ministry of Industry Bureau of Public Enterprises
The affidavit is taken on record
We heard the parties on the proposals contained in the affidavit and found that there was not much controversy over the proposals except in regard to the date of the implemen tation of the House Rent Allowance
The employees insisted that the said allowance should be given from 11
1986 whereas the Government contended that it can properly be implemented only wef
January 1 1989 since the Report was of 2nd November 1988
We however direct as follows i The scales of pay and dearness allowance as recommended in the Report will be extended to those employees who have been appointed with specific terms and conditions for grant of Central DA
This will be equally applicable to the employees who by rules laid down by the public sector enter prises are being paid Central dearness allowance
ii The employees appointed on or after January 1 1989 will be governed by such pay scales and allowances as may be decided by the Government in its discretion
Those appointed earlier 1010 with IDA pattern will continue to be governed in accordance with the terms and conditions of their appointment
iii The pay revision for those employees in respect of whom the recommendations are hereby being directed to be implemented hereafter will take place only as and when similar changes are effected for the Central Government employees
These employees will however continue to enjoy the option to switch over to the IDA pattern of the scales of pay etc
on a voluntary basis
iv The various recommendations made in the Report will be implemented with effect from the dates as follows
These dates are broadly in conformity with those specified in the Report Item To be implemented we f 1
Revised pay scales and 111986 Para 161 revised D A formula 2
First instalment of 161983 Para 163 Interim Relief 3
Second instalment of 131985 Para 163 Interim Relief 4
CCA as per revised slabs 111989 para 116 of Chapter 11 From 111986to31121988 CCA of the Report will be paid at the existing rate at national pay in the revised pay scalespara 117 of the report 5
House Rent Allowance Ceiling on payment of HRA with percentage rates as per out production or rent receipt BPE s OM NO1383 BPE to be revised from 1121988
WC dated 1783 sub The existing HRA structure to ject to overall ceiling be reviewed by BPE and revised of Rs1250 1000 680 norms and rates fixed from a 340 and 310 for Delhi prospective date Ref
Para Bombay AB1 and B2C 1115 and unclassified cities respectively
1011 6
Medical facilities in From prospective date to be terms of para 1121 of decided by the Management of the Report the PSBs 7
Leave Travel Concession do 8
Other Allowances and per The quantum of benefits to be quisites as per recommen decided by the Management of dations contained in Cha PSEs should be given effect pters 12  13 of the to prospectively in terms Report of para III
7 part III of the Report v The arrears arising on account of pay DA and other allowances etc would be adjustable against ad hoe payments made from time to time
This judgment will govern all the petitions
The petitions transferred cases and all interlocutory applica tions civil miscellaneous petitions and contempt petition are disposed of accordingly with no costs
PSS Petitions disposed of


Summary:
Under Rule 2 of the Special Rules for the AP Medical and Health Services 1982 which provided for the method of recruitment to different classes and categories in the AP Medical and Health Services there were three requirements for eligibility for consideration for promotion to the Class I Category I posts of Additional Director Medical Educa tion and equivalent posts
These were i the person should be in categories 2 and 3 posts of Professors ii he should have a minimum service of two years in the said categories and iii he should have a total service of not less than three years
The respondents were all originally recruited as Civil Assistant Surgeons upon selection by the State Public Service Commission
In the Select List prepared by the Commission respondents No 1 to 12 were recruited above the other respondents
However they were not considered for promotion to the category of Additional Director and other equivalent posts
Hence the aggrieved respondents took their grievance to the State Administrative Tribunal
The dispute before the Tribunal was whether the requirement of three years service should be only in Class I Categories 2 and 3 or it was inclusive of service in Class II
The Tribunal held that it should be on the basis of total period of service including in the lower categories subject to the condition that the person should be holding the post of Professor or equivalent post for at least two years
56 In the appeal before this Court on behalf of the State
it was contended that the seniority for zone of considera tion for promotion should always be of the feeding cadre and not from any other cadre
and that the minimum of three years must be in Class I in any category and can never be in Class II service
Dismissing the appeals this Court HELD 11 The juniors who get accelerated promotion on account of fortuitous circumstances depending upon their speciality and availability of vacancies in such speciality should not be allowed to march over their seniors for ap pointment to administrative posts
Any advantage gained by juniors on such fortuitous circumstances of having some speciality and promotion should not impair the rights of their seniors for promotion to posts where speciality or teaching experience is not called for
The seniority deter mined in order of speciality should not
therefore be the basis for promotion to administrative posts
Any rule pro viding for the contrary may be vulnerable to attack on the ground of arbitrariness
62G H 63A 12 It would be unreasonable and unjust to exclude the service and overlook the vertical seniority in the substan tive cadre to which everyone was selected by the Public Service Commission
In medical profession there are spe cialities but it is generally accepted that they are not of equal importance or utility
However the promotions are allowed on the basis of the respective specialities and the availability of promotional vacancies in such specialities
A junior with relatively less important speciality may be fortunate enough to get quick promotion than his senior with a different speciality
62E G 13 The seniority in the category of professors in the teaching and non teaching cadre or in the lower cadre based on speciality wise will not be relevant for preparation of a panel for promotion to the cadre of Additional Director and other equivalent posts in Category I Equally
the service rendered as Deputy Civil Surgeon in Category 5 cannot also be the basis for preparing the panel for consideration
Further more
Rule 2 does not expressly exclude the service in Class 11 Cadre for preparing panel for consideration for promotion to the Category of Additional Director and equiva lent posts
62B E 2 Imprecise drafting of the Rules has led to misunder standing and litigation
It would therefore
be proper for the State Government to have the wordings of the Rules properly amended with perspicuity to 57 give effect to the view indicated  herein
63B C