UNION OF INDIA VERSUS INDIAN NAVY CIVILIAN DESIGN OFFICERS ASSOCIATION AND ANR

UNION OF INDIA VERSUS INDIAN NAVY CIVILIAN DESIGN OFFICERS ASSOCIATION AND ANR 

Landmark Cases of India / सुप्रीम कोर्ट के ऐतिहासिक फैसले


REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
 CIVIL APPEAL NO. 8329 OF 2011
UNION OF INDIA .....APPELLANT
VERSUS
INDIAN NAVY CIVILIAN DESIGN
OFFICERS ASSOCIATION AND ANR. .....RESPONDENTS

J U D G M E N T
BELA M. TRIVEDI, J.
1. By way of present appeal, the appellant-Union of India has
challenged the judgment and order dated 02.08.2010 passed by
the High Court of Delhi, in WP(C)No. 1006 of 2008, whereby the
High Court had dismissed the Writ Petition filed by the appellant
and confirmed the judgment and order dated 08.06.2007 passed
by the Central Administrative Tribunal (hereinafter referred to as
the ‘Tribunal’) in O.A. No. 2228 of 2006.
2. The respondent-Indian Navy Civilian Design Officers Association
had by way of filing the O.A. No.2223/2006 before the Tribunal,
challenged the decision of the appellant rejecting their
1
representation for the grant of pay scale of Rs.7500-12000 to the
Junior Design Officers as allowed to the Civilian Technical Officers
(Design), consequent to the implementation of the Fifth Central
Pay Commission. As per the case of the respondent-association,
the cadre of Design officers in the Indian Navy was created in the
year 1965 in order to meet with the functional requirements of
Navy regarding specific assignments to the Naval dockyards,
Training, Establishments, Directorate of Naval Design and other
Technical Directorates of Naval Headquarters. The drawing staff in
the Navy belonged to diverse disciplines such as Construction,
Electrical, Engineering and Armament. So far as the disciplines of
Construction, Electrical and Engineering were concerned, the
Group ‘B’ gazetted posts were designated as Junior Design
Officers (JDOs), and for Armament disciplines, the Group ‘B’
gazetted posts were designated as Civilian Technical Officers
(CTOs) (Design). The Recruitment Rules governing the JDOs
notified by SRO 367 dated 08.12.1996, were amended by SRO
246 dated 21.11.2002. The Recruitment Rules for the post of
CTOs (Design) were notified by SRO 132 dated 12.05.1982.
3. As per the further case of the respondent-Association, up to the
Fifth Central Pay Commission, all the pay scales of all the
disciplines and all grades were the same, however, after the
2
recommendations of the Fifth Pay Commission, the pay scale of
Rs.7500-12000 was fixed for the CTOs, whereas the pay scale of
Rs.7450-11500 was fixed for the JDOs. Since the pay scales of
the feeder cadre had remained the same in all the disciplines, the
respondent-Association had made representation to the appellant
for the grant of revised pay scale of Rs. 7500-12000 to the JDOs
as allowed to the CTOs (Design) consequent upon the
implementation of the Fifth Central Pay Commission. The Ministry
of Finance having rejected the respondent’s proposal for
upgradation of the pay scale, the respondent-Association had filed
the O.A. No. 1730 of 2003 before the Tribunal. The Tribunal vide
the order dated 01.11.2004 disposed of the said O.A. with
direction to the appellant to consider the parity of pay scale of
JDOs along with CTOs by evaluating their duties and
responsibilities and to pass a detailed speaking order.
4. The Ministry of Finance reconsidered the said representation of
the respondent-Association, however, again rejected the same by
a speaking order on 07.04.2006. Being aggrieved by the said
order, the respondent-Association had preferred the O.A. No. 2228
of 2006 before the Tribunal, which came to be allowed vide the
order dated 08.06.2007. The Tribunal set aside the order dated
07.04.2006 passed by the appellant-UOI and directed the
3
appellant to grant to the JDOs, the pay scale of Rs. 7500-12000 at
par with Group ‘B’ gazetted posts of CTOs (Design) from the same
date as it was given to the Group ‘B’ gazetted posts with all
consequential benefits. The appellant being aggrieved by the said
order passed by the Tribunal had filed W.P(C) No. 1006 of 2008,
which came to be dismissed by the High Court vide the impugned
order.
5. The main question that falls for consideration before this Court is
whether the Tribunal and the High Court were justified in equating
the posts of JDOs with CTOs, and in fixing the pay scales of JDOs
equivalent to that of CTOs, in utter disregard of the legal position
settled by this Court in catena of decisions to the effect that the
Courts should not interfere with the complex issues of evaluating
the nature of duties and responsibilities of posts, and of fixing the
pay scales, which task otherwise is best done by the expert bodies
like the Pay Commission.
6. The learned Senior Advocate Mr. R. Bala Subramanyam
appearing for the appellant placing heavy reliance upon the
decision of the Ministry of Finance dated 07.04.2006 submitted as
under:
(i) The posts of JDOs and CTOs are governed by two
different sets of Rules. Accordingly, the qualifications for
4
recruitment/promotion in the case of CTOs are higher
than that of the JDOs;
(ii) The probation period in case of CTOs is longer than that
of JDOs;
(iii) The duties and responsibilities attached to the posts of
CTOs are more onerous, varied and challenging as
compared to that of JDOs;
(iv) The post of CTOs also exists in other streams like R&D
in the revised pay scale of Rs. 7500-12000. These posts
could not be given the lower pay scale of Rs. 7450-
11500, as the feeder post of foreman exists in the said
pay scale.
(v) As the post of CTOs in different streams within the
Naval Armament Inspection Organizations were already
in the higher pay scale of Rs. 7500-12000, the same pay
scale had to be extended to the CTOs (Design) as well,
whereas no such exigency existed in case of the post of
JDOs.
(vi) The pay scales for the posts of the JDOs and CTOs
were fixed on the basis of the specific recommendations
of the Fifth Central Pay Commission, and therefore the
Tribunal as well as the High Court had committed gross
error in interfering with the same and in upgrading the
5
pay scale of JDOs to put them at par with CTOs
(Design).
7. Mr. R. Bala Subramanyam has also placed on record the chart
showing the promotional hierarchy of CTOs and JDOs in different
CPCs: -
Promotional hierarchy of CTO and JDO in different CPCs
S.
No
.
Promotional
hierarchy of
JDO
Promotional
hierarchy of
CTO (Design)
Pay Scale
 4
th
 CPC 5
th
 CPC 6
th
 CPC 7
th
CPC
1 Principal Design
Officer-I
-
- 14500-18300 37400-67000,
GP-8700
L-13
2 Principal Design
Officer
Principal
Technical
Officer (D)*
3700-5000 12000-16500 15600-39100,
GP-7600
L-12
3 Senior Design
Officer GD-I
Senior
Technical
Officer (D)
3000-4500 10000-15200 15600-39100,
GP-6600
L-11
4 Senior Design
Officer GD-II
-
2200-4000 8000-13500 15600-39100,
GP-5400
L-10
5
-
Civilian
Technical
Officer (D)
2000-3500
(upgraded
to 2500-
4000 in 5th
CPC)
7500-12000 9300-34800,
GP-4800
L-8
6 Junior Design
Officer -
2000-3500
(upgraded
to 2375-
3500 in 5th
CPC)
7450-11500 9300-34800,
GP-4600
L-7
7 Chief D’Man Chief D’Man 2000-3200 6500-10500 9300-34800,
GP-4600
L-7
8 Senior D’Man Senior D’Man 1400-2300 5000-8000 9300-34800,
GP-4200
L-6
9 D’Man D’Man# 1200-2040 4000-6000 5200-20200,
GP-2400
L-4
* New grade of PTO(D) created in the cadre restructuring on 29 Oct. 2020.
# The posts of D’Man in NAI cadre has been abolished in the cadre restricting
on 29 Oct. 2020.
- Grade/Posts doesn’t exists in cadre.
6
8. Per contra, learned senior advocate Mr. Salman Khurshid
appearing for the respondent-Association made the following
submissions-
(i) The Fifth Pay Commission had ignored the fact that from
the very beginning, the posts of JDOs and CTOs
(Design) carried the same pay scales, as they were
having the same duties and responsibilities.
(ii) The post of Senior Foreman was granted the pay scale
of Rs. 7450-11500, which was the pay scale granted to
the JDOs, though the JDOs in the course of their duties
had to supervise the work of Chief Draughtsman and
Senior Foreman.
(iii) The department itself had strongly supported the case of
JDOs by putting a note dated 16.02.2005 recorded by
the Joint Director who had recommended upgradation of
the pay scale of JDOs and for putting them at par with
CTOs (Design).
(iv) Up to the Fourth Pay Commission, both the posts were
carrying the same pay scale.
(v) There would not have been any cascading effect if the
pay scale of JDOs was upgraded, as the post of JDOs
did not exist in the other organizations like EME, MES,
and Air Force etc. and the financial implications were
also not very big.
7
(vi) The essential qualifications in the Recruitment Rules for
CTO (Design) and in the Recruitment Rules for JDO
were also more or less same and the promotional
avenues in both the cadres were also similar.
9. Before adverting to the rival contentions raised by the learned
counsels for the parties, it deserves to be noted that the power of
judicial review of the High Courts in the matter of classification of
posts and determination of pay scale is no more res integra. It has
been consistently held by this Court in plethora of decisions that
equation of posts and equation of salaries is a complex matter
which is best left to an expert body unless there is cogent material
on record to come to a firm conclusion that a grave error had crept
in while fixing the pay scale for a given post and the interference of
the Court was absolutely necessary to undo the injustice.
10. In State of U.P. and Others Vs. J.P. Chaurasia and Others1
,
while answering the questions as to whether the Bench
Secretaries in the High Court of Allahabad were entitled to pay
scale admissible to the Section Officers and whether the creation
of two grades with different scales in the cadre of Bench
Secretaries who were doing the same and similar work was
violative of the right to have “equal pay for equal work”. This Court
observed as under: -
1 1989(1) SCC 121
8
“18. The first question regarding entitlement to the pay
scale admissible to Section Officers should not detain us
longer. The answer to the question depends upon several
factors. It does not just depend upon either the nature of
work or volume of work done by Bench Secretaries.
Primarily it requires among others, evaluation of duties and
responsibilities of the respective posts. More often
functions of two posts may appear to be the same or
similar, but there may be difference in degrees in the
performance. The quantity of work may be the same, but
quality may be different that cannot be determined by
relying upon averments in affidavits of interested parties.
The equation of posts or equation of pay must be left to the
executive Government. It must be determined by expert
bodies like Pay Commission. They would be the best judge
to evaluate the nature of duties and responsibilities of
posts. If there is any such determination by a Commission
or Committee, the court should normally accept it. The
court should not try to tinker with such equivalence unless
it is shown that it was made with extraneous
consideration.”
11. The afore-stated ratio was followed by this Court in Union of India
and Others Vs. Makhan Chandra Roy2
. Again, in Secretary,
Finance Department and Others Vs. West Bengal Registration
Service Association and Others3
, the claim of Sub-Registrars of
West Bengal Registration Service claiming parity in pay scale with
Munsiffs on the basis that Sub-Registrars were conferred gazetted
status, was examined by this Court. It was elaborately observed in
para 12 as under: -
“12. We do not consider it necessary to traverse the case
law on which reliance has been placed by counsel for the
appellants as it is well settled that equation of posts and
determination of pay scales is the primary function of the
executive and not the judiciary and, therefore, ordinarily
courts will not enter upon the task of job evaluation which
is generally left to expert bodies like the Pay Commissions,
etc. But that is not to say that the Court has no jurisdiction
and the aggrieved employees have no remedy if they are
unjustly treated by arbitrary State action or inaction. Courts
2 1997 (11) SCC 182
3 1993 Suppl. (1) SCC 153
9
must, however, realise that job evaluation is both a difficult
and time-consuming task which even expert bodies having
the assistance of staff with requisite expertise have found
difficult to undertake sometimes on account of want of
relevant data and scales for evaluating performances of
different groups of employees. This would call for a
constant study of the external comparisons and internal
relativities on account of the changing nature of job
requirements. The factors which may have to be kept in
view for job evaluation may include (i) the work programme
of his department (ii) the nature of contribution expected of
him (iii) the extent of his responsibility and accountability in
the discharge of his diverse duties and functions (iv) the
extent and nature of freedoms/limitations available or
imposed on him in the discharge of his duties (v) the extent
of powers vested in him (vi) the extent of his dependence
on superiors for the exercise of his powers (vii) the need to
co-ordinate with other departments, etc. We have also
referred to the history of the service and the effort of
various bodies to reduce the total number of pay scales to
a reasonable number. Such reduction in the number of pay
scales has to be achieved by resorting to broad banding of
posts by placing different posts having comparable job
charts in a common scale. Substantial reduction in the
number of pay scales must inevitably lead to clubbing of
posts and grades which were earlier different and unequal.
While doing so care must be taken to ensure that such
rationalisation of the pay structure does not throw up
anomalies. Ordinarily a pay structure is evolved keeping in
mind several factors, e.g., (i) method of recruitment, (ii)
level at which recruitment is 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,
(vii) the horizontal and vertical relativities with similar jobs,
(viii) public dealings, (ix) satisfaction level, (x) employer's
capacity to pay, etc. We have referred to these matters in
some detail only to emphasise that several factors have to
be kept in view while evolving a pay structure and the
horizontal and vertical relativities have to be carefully
balanced keeping in mind the hierarchical arrangements,
avenues for promotion, etc. Such a carefully evolved pay
structure ought not to be ordinarily disturbed as it may
upset the balance and cause avoidable ripples in other
cadres as well. It is presumably for this reason that the
Judicial Secretary who had strongly recommended a
substantial hike in the salary of the Sub-Registrars to the
Second (State) Pay Commission found it difficult to
concede the demand made by the Registration Service
before him in his capacity as the Chairman of the Third
(State) Pay Commission. There can, therefore, be no
doubt that equation of posts and equation of salaries is a
complex matter which is best left to an expert body unless
there is cogent material on record to come to a firm
conclusion that a grave error had crept in while fixing the
10
pay scale for a given post and Court's interference is
absolutely necessary to undo the injustice.”
12. In State of Haryana and Others Vs. Charanjit Singh and
Others4
, a three-judge Bench in a referred matter considered
whether the doctrine of “equal pay for equal work”, was an abstract
doctrine, and observed thus: -
“19. Having considered the authorities and the
submissions we are of the view that the authorities in the
cases of Jasmer Singh [(1996) 11 SCC 77 : 1997 SCC
(L&S) 210 : AIR 1997 SC 1788 : (1997) 2 LLJ 667] , Tilak
Raj [(2003) 6 SCC 123 : 2003 SCC (L&S) 828] , Orissa
University of Agriculture & Technology [(2003) 5 SCC 188 :
2003 SCC (L&S) 645 : (2003) 2 LLJ 968] and Tarun K.
Roy [(2004) 1 SCC 347 : 2004 SCC (L&S) 225] lay down
the correct law. Undoubtedly, the doctrine of “equal pay for
equal work” is not an abstract doctrine and is capable of
being enforced in a court of law. But equal pay must be for
equal work of equal value. The principle of “equal pay for
equal work” has no mechanical application in every case.
Article 14 permits reasonable classification based on
qualities or characteristics of persons recruited and
grouped together, as against those who were left out. Of
course, the qualities or characteristics must have a
reasonable relation to the object sought to be achieved. In
service matters, merit or experience can be a proper basis
for classification for the purposes of pay in order to
promote efficiency in administration. A higher pay scale to
avoid stagnation or resultant frustration for lack of
promotional avenues is also an acceptable reason for pay
differentiation. The very fact that the person has not gone
through the process of recruitment may itself, in certain
cases, make a difference. If the educational qualifications
are different, then also the doctrine may have no
application. Even though persons may do the same work,
their quality of work may differ. Where persons are
selected by a Selection Committee on the basis of merit
with due regard to seniority a higher pay scale granted to
such persons who are evaluated by the competent
authority cannot be challenged. A classification based on
difference in educational qualifications justifies a difference
in pay scales. A mere nomenclature designating a person
as say a carpenter or a craftsman is not enough to come to
the conclusion that he is doing the same work as another
carpenter or craftsman in regular service. The quality of
work which is produced may be different and even the
nature of work assigned may be different. It is not just a
comparison of physical activity. The application of the
4 2006 (9) SCC 321
11
principle of “equal pay for equal work” requires
consideration of various dimensions of a given job. The
accuracy required and the dexterity that the job may entail
may differ from job to job. It cannot be judged by the mere
volume of work. There may be qualitative difference as
regards reliability and responsibility. Functions may be the
same but the responsibilities make a difference. Thus
normally the applicability of this principle must be left to be
evaluated and determined by an expert body. These are
not matters where a writ court can lightly interfere.
Normally a party claiming equal pay for equal work should
be required to raise a dispute in this regard. In any event,
the party who claims equal pay for equal work has to make
necessary averments and prove that all things are equal.
Thus, before any direction can be issued by a court, the
court must first see that there are necessary averments
and there is a proof. If the High Court is, on basis of
material placed before it, convinced that there was equal
work of equal quality and all other relevant factors are
fulfilled it may direct payment of equal pay from the date of
the filing of the respective writ petition. In all these cases,
we find that the High Court has blindly proceeded on the
basis that the doctrine of equal pay for equal work applies
without examining any relevant factors.”
13. In Union of India through Secretary, Department of Personnel,
Public Grievances and Pensions and Anr. Vs. T.V.L.N
Mallikarjuna Rao5
, this Court reiterated the said position: -
“26. The classification of posts and determination of pay
structure comes within the exclusive domain of the
executive and the Tribunal cannot sit in appeal over the
wisdom of the executive in prescribing certain pay
structure and grade in a particular service. There may be
more grades than one in a particular service.”
14. In view of the afore-stated legal position, it clearly emerges that
though the doctrine “equal pay for equal work” is not an abstract
doctrine and is capable of being enforced in a Court of Law, the
equal pay must be for equal work of equal value. The equation of
posts and determination of pay scales is the primary function of
the Executive and not of the Judiciary. The Courts therefore should
5 (2015) 3 SCC 653
12
not enter upon the task of job evaluation which is generally left to
the expert bodies like the Pay Commissions which undertake
rigorous exercise for job evaluation after taking into consideration
several factors like the nature of work, the duties, accountability
and responsibilities attached to the posts, the extent of powers
conferred on the persons holding a particular post, the promotional
avenues, the Statutory rules governing the conditions of service,
the horizontal and vertical relativities with similar jobs etc. It may
be true that the nature of work involved in two posts may
sometimes appear to be more or less similar, however, if the
classification of posts and determination of pay scale have
reasonable nexus with the objective or purpose sought to be
achieved, namely, the efficiency in the administration, the Pay
Commissions would be justified in recommending and the State
would be justified in prescribing different pay scales for the
seemingly similar posts. A higher pay scale to avoid stagnation or
resultant frustration for lack of promotional avenues or frustration
due to longer duration of promotional avenues is also an
acceptable reason for pay differentiation. It is also a well-accepted
position that there could be more than one grade in a particular
service. The classification of posts and the determination of pay
structure, thus falls within the exclusive domain of the Executive,
13
and the Courts or Tribunals cannot sit in appeal over the wisdom
of the Executive in prescribing certain pay structure and grade in a
particular service.
15. So far as the facts of the present case are concerned, it is not
disputed that the Recruitment Rules governing the JDOs are as
per the SRO 367 dated 08.12.1996, as amended by SRO 246
dated 21.11.2002, whereas the Recruitment Rules governing the
CTOs (Design) are as per the SRO 132 dated 12.05.1982. The
probation period in case of CTOs is longer than that of JDOs. The
duties and responsibilities of both the posts are different and the
promotional avenues also have different duration and different
criteria. There was not a single error, much less grave error
pointed out by learned Senior Advocate. Mr. Khurshid, in the
fixation of the pay scales for the JDOs and CTOs, which would
have justified the interference of the Tribunal.
16. Much emphasis was placed by the learned senior advocate Mr.
Khurshid on the noting made by the Officer of the Naval
Department in the file recommending pay scale of JDOs
equivalent to that of CTOs, however, it may be noted that a noting
recorded in the file is merely an expression of opinion by a
14
particular officer, and by no-stretch of imagination such noting
could be treated as a decision of the Government6
.
17. The powers of judicial review in the matters involving financial
implications are also very limited. The wisdom and advisability of
the Courts in the matters concerning the finance, are ordinarily not
amenable to judicial review unless a gross case of arbitrariness or
unfairness is established by the aggrieved party.
18. In that view of the matter, we are of the opinion that the Tribunal
and the High Court had committed gross error in interfering with
the pay scales recommended by the Fifth Central Pay Commission
and accepted by the appellant for the posts of JDOs and CTOs,
and in upgrading the pay scale of JDOs making it equivalent to the
pay scale of CTOs.
19. Consequently, the impugned orders passed by the High Court and
the Tribunal are quashed and set aside. The appeal stands
allowed accordingly.
..………………………. J.
[AJAY RASTOGI]
 …..................................J.
 [BELA M. TRIVEDI]
NEW DELHI;
22.02.2023
6 (2009) 15 SCC 705
15

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