Sunday 10 February 2013

CAT Order regd. - stepping up pay

Principal Bench, New Delhi.
OA-2124/2011
MA-1617/2011
Reserved on : 28.01.2013.
Pronounced on : 01.02.2013.

Hon ble Mr. G. George Paracken, Member (J)
Hon ble Mr. Shekhar Agarwal, Member (A)

1. All India Postal Accounts Employees
Association represented by S. Santosh Kumar,
President, R/o 13-B, DDA Flats, Type-IV,
New Mahavir Nagar, New Delhi-18.
2. E. Kanagraj, Senior Accountant
in O/o General Manager, Postal Accounts &
Finance, Tamilnadu Circle, Chennai-8. . Applicants
(through Sh. B.K. Berera, Advocate)

Versus

1. Union of India through
The Secretary,
Department of Posts (Postal & Accounts Wing)
Ministry of Communication & Information
Technology, Dak Bhawan, Sansad Marg,
New Delhi-1.

2. The Secretary,
Department of Personnel & Training,
Ministry of Public Grievances & Pensions,
North Block, New Delhi-1. . Respondents
(through Sh. S.M. Zulfiqar Alam, Advocate)

O R D E R

Mr. Shekhar Agarwal, Member (A)

The applicants have sought the following relief:-

(a) Direction from this Hon ble Tribunal to Respondents for grant of stepping up pay of all Senior Accountants on par with Senior Accountants who are junior to the former in the cadre of Sr. Accountant. (b) Direction to the Respondents to pay compound interest on the arrears, compounded every months, as the respondents caused serious prejudice to the Applicants every months when the Applicants were not granted the financial upgradations by stepping up their pay. (c) Direction from Hon ble Tribunal to declare the CLAUSE 8 of the condition for grant of BENEFIT UNDER THE ACP SCHEME being uptra vires beyond the statute which provide The financial upgradation under the ACP Scheme shall be purely personal to the employee and shall have no relevance to his seniority position. As such, there, shall be no additional financial upgradation for the senior employee on the ground that the junior employee in the grade has got higher pay scale under the ACP Scheme. (d) Direction to the respondents to pay cost of litigation to the Applicants as the Applicants have been dragged to the Tribunal by the respondents.
(e) Any other order as this Hon ble Tribunal may deem fit under the present facts and circumstances of the case.
2. Briefly undisputed facts of the case are that the applicants joined the Department of Posts as LDCs and were promoted as Junior Accountant. Subsequently, on restructuring of the Accounts Cadre, 80% of the Accountants were designated as Senior Accountants and were placed in the pay scale of Rs.1400-2600 (revised Pay Scale Rs.5500-9000) w.e.f. 01.04.1987. Government of India promulgated an Assured Career Progression (ACP) Scheme for Central Government Civilian Employees vide their O.M. No. 35034/1/97-Estt(D) dated 09.08.1999 which provided for two financial upgradations to employees who had completed 12 and 24 years of service but had not found regular promotion in their department. Financial upgradation under the Scheme was to be given to the next higher grade in accordance with the existing hierarchy in a cadre. Clause-8 of the Scheme by which the applicants are aggrieved reads as follows:- The financial upgradation under the ACP Scheme shall be purely personal to the employee and shall have no relevance to his seniority position. As such, there shall be no additional financial upgradation for the senior employee on the ground that the junior employee in the grade has got higher pay-scale under the ACP Scheme.
3. The grievance of the applicants is that they have been denied benefits under this Scheme on the grounds that they had joined as LDC and had already found two promotions in their cadre, namely, to the post of Junior Accountant and then as Senior Accountant whereas those who had joined the department as direct recruits to the post of Junior Accountant and had found only one promotion to the level of Senior Accountant were given benefit of the ACP Scheme and placed in higher grade. The applicants have contended that due to denial of benefit of ACP Scheme to them many of the direct recruits who are junior to them in the cadre have started drawing more salary than their seniors. The applicants have further stated that all Senior Accountants regardless of the fact whether they are promotees or direct recruits are placed in a single gradation list and their seniority is determined on the basis of their date of appointment as Senior Accountants. The applicants had represented before the respondents but their representations had been rejected. Aggrieved by this, they have approached this Tribunal. Their main prayer is that Clause-8 of the ACP Scheme be declared ultra vires beyond the statute and their pay be stepped up to bring it at par with their juniors.
4. The respondents have in their reply stated that the ACP Scheme was enforced to deal with the problem of stagnation in certain cadres. It provides for at least two financial upgradations in service career of an employee even if he is not able to find regular promotions due to unavailability of vacancies. According to them Clause-8 of the Scheme clearly states that the financial upgradation under the Scheme is purely personal to the employee and shall have no relevance to his seniority position and as such no additional financial upgradation will be given to a senior employee on the ground that the junior employee has got higher pay scale under the ACP Scheme. The respondents argued that there is no infirmity in the Clause-8 of the Scheme placing reliance on the decisions of Hon ble Supreme Court in the case of UOI and Anr. Vs. V.R. Swaminathan, JT 1997(8) SC 61 and State of U.P. & Ors. Vs. J.P. Chaurasia and Ors., JT 1988 (4) SC 53.
5. We have heard the learned counsel for both sides and perused the material placed on record.
6. During the course of arguments, the respondents made available judgment of Bombay Bench at Nagpur of CAT in OA-2117/2005 (A.N. Pant & Ors. Vs. UOI & Ors.) dated 01.08.2012 between the same parties. By the aforesaid judgment, the claim of the applicants for placement in higher pay scale on the ground that junior employee had got that grade on account of ACP Scheme was rejected. However, learned counsel for the applicants pointed out that the prayer of the applicants in the instant case was different. According to him, in the case decided by the Bombay Bench at Nagpur, the prayer of the applicants was for grant of higher pay scale whereas in the instant case the prayer is only for stepping up of pay.
7. We have seen the judgment of the Hon ble Supreme Court on which reliance has been placed by the respondents and we find that the facts and circumstances of the two cases are different. Thus, in the case of V.R. Swaminathan (supra) senior employees were demanding stepping up of pay on account of the fact that juniors had got the benefit of higher pay because they had officiated on higher post based on local/circle seniority. Further, in the other case of J.P. Chaurasia (supra) two scales had been created in the cadre of Bench Secretaries of Allahabad High Court that promotions from lower to higher scale taking place based on seniority-cum-fitness. None of these two cases appears to be relevant.
8. On the other hand, the applicants have placed reliance on the judgment of Chandigarh Bench of this Tribunal dated 19.01.2010 in OA-156-JK-2009(Ashok Kumar Vs. UOI & Ors.). Relevant porition of this judgments reads as under:-
9. The issue raised in this case as to whether a senior person, though having received two promotions, is entitled to stepping up of his pay at par with his junior, who has been granted benefit under ACP Scheme and by virtue of this, is receiving higher pay than his senior, stands clinched by various decisions of this Tribunal including in O.A. No. 842-JK-2007 decided on 17.11.2009 titled Madan Gopal Sharma & Others Vs. Union of India & Others. In that case reliance was placed on decisions of Apex Court in the case of Ram Sarup Ganda (supra) and (Gurmail Singh). Reliance was also placed on decision in the case of Harcharan Singh Sudan (supra). It was held that seniors are entitled to step up their pay as a general rule as and when any junior gets fixed in a pay scale higher to them on account of grant of ACP Scale. Para 14 of the decision in the case of Harcharan Singh Sudan (supra) in Para 14 is reproduced as under:- 14. However, one aspect is to be seen. In the case decided by the Apex Court, the State Government was the appellant and the challenge was against the High Court judgment, which held that the higher pay scale be given to the respondents at par with their juniors whose pay scale became higher on account of the benefit of ACP afforded to them. The appeal was not dismissed but partly allowed and it was declared that the respondents were entitled to stepping up of pay. In other words, there shall only be the stepping up of pay and not the pay scale. The pay scale in respect of the applicants would remain the same as of date but the pay would be fixed in appropriate stage, and if there is no stage to match the pay drawn by the junior, the difference shall be treated as one of personal pay. The pay parity would be compared annually and partly would be maintained in future
10. Finding that the facts of this case are covered by the decision in the case of Harcharan Singh Sudan s case as well as Madan Gopal Sharma and Others (supra), this Original Application is allowed to the extent that annexure A-2 relating to rejection of claim of applicant is quashed and set aside.
11. With this O.A. stands disposed of and the respondents are directed to step up the pay of the applicant at par with his junior aforesaid and in terms of the directions contained in the case of Harcharan Singh Sudan (supra). It is made clear that the applicant shall be given stepping up of pay only and not the pay scale, as explained above. The pay may be fixed accordingly and arrears be also paid to him within a period of three months from the date of receipt of a copy of this order. However, in the given facts and circumstances of the case, applicant is not entitled to interest. Parties to bear their own costs.
9. In our opinion, the case of the applicants is covered by the aforesaid order of the Tribunal, hence they are also entitled to the same benefits. Accordingly, the present O.A. is allowed. Respondents are directed that the pay of the applicants be stepped up in terms of Para-9 of the aforesaid judgment. This shall be done within a period of three months from the date of receipt of a copy of this order. There shall be no order as to costs. 
(Shekhar Agarwal) (G. George Paracken)

Member (A) Member (J)

Source: http://indiankanoon.in/doc/119664509/

Thursday 7 February 2013

MERGER OF DA IN BASIC PAY ? ? ? ? ? ? ?

MERGER OF DA IN BASIC PAY
 

Mitra,Shri Somendra Nath

Mitra,Shri Somendra Nath's headshot
M.P. in the Lok Sabha
Party: ALL INDIA TRINAMOOL CONGRESS
State: West Bengal
District: Diamond Harbour
Birthdate: 31'st Dec., 1943
No contact information available.

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Petitions referencing this MP.
Terms in Lok Sabha
Fifteenth (1'st June, 2009 - Present )
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
LOK SABHA
UNSTARRED QUESTION NO 3632
ANSWERED ON 14.12.2012
MERGER OF DA IN BASIC PAY

3632 . Shri SOMENDRA NATH MITRA

Will the Minister of FINANCE be pleased to state:-

(a) whether various Associations/ Organisations of Central Government employees demanded merger of 50 per cent Dearness Allowance into the basic pay of Central Government employees and pensioners;

(b) if so, the details thereof and reaction of the Government thereto; and

(c) the recommendation of the Sixth Central Pay Commission in this regard and action taken by the Government thereto?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE (E&FS) (SHRI NAMO NARAIN MEENA)

(a): Yes Sir.
(b) & (c):
(a): Various Associations/ Organisations of Central Government employees demanded merger of 50 per cent Dearness Allowance into the basic pay of Central Government employees and pensioners.
(b): A number of representations have been received from Associations/Organizations of Central Government Employees/Pensioners and individuals demanding merger of 50% of Dearness Allowance/ Dearness Relief with basic pay/pension respectively. The demand has been considered by the Government and not agreed to since the 6th Central Pay Commission has not recommended as such.
(c): The 6th Central Pay Commission did not recommend merger of dearness allowance with Basic Pay at any stage. Government accepted this recommendation vide Government of India Resolution dated 29.08.2008.
 expectation of Central Government employees
 
Impact of merger of 50% Dearness Allowance in basic pay as Dearness Pay:-
Merger of 50% Dearness Allowance (DA) in basic pay Sixth Pay Commission is main demand of Following table is showing approximate change in total emoluments after merger of dearness allowance in pay.  All calculation in following table is based on:-
1. Merger of 50% DA w.e.f. 01.01.2011 (DA was @ 51% that time)
2. Dearness Pay is separately calculated as 50% of sum of Pay in PB and Grade Pay  and
3. Rest DA after subtracting the 50% and HRA are calculated on the sum of Pay in PB, Grade Pay & new dearness pay.
4. Transport allowance is calculated on original DA rate


15 different examples are given to show every Grade Pay.  Approximate Arrears has been calculated from Jan-2011 to Dec-2012.  Only two month's pay i.e. Jan-2011 and Dec-2011 is shown in this table.  Two increments -  1st on Jul-2011 and 2nd on Jul, 2012 have been calculated in approximate arrears. 

Example-1 - Entitlement- Tpt= Rs.400 HRA=30% 
Pay in PB as on 01-01-2011 = Rs. 5880 Gde Pay= Rs. 1800
Month
Pay
inPB
Grade
Pay
Before DA Merger
After DA Merger
Difference 
DA
HRA
TPT
Total
D Pay
DA
HRA
TPT
Total
Rs.
%
Jan-2011
5880
1800
3917
2304
 604
14505
3840
115
3456
 604
 15,695
 1,190
8%
Dec-2012
6350
1800
5868
2445
 688
17151
4075
2690
3668
 688
 19,271
 2,120
12%
Approximate Arrear from Jan-2011 to Dec-2012 after implementation of Merger of DA =
 39,558
Example-2 - Entitlement- Tpt= Rs.400 HRA=30% 
Pay in PB as on 01-01-2011 = Rs. 6380 Gde Pay= Rs. 1900
Month
Pay
inPB
Grade
Pay
Before DA Merger
After DA Merger
Difference 
DA
HRA
TPT
Total
D Pay
DA
HRA
TPT
Total
Rs.
%
Jan-2011
6380
1900
4223
2484
 604
15591
4140
124
3726
 604
 16,874
 1,283
8%
Dec-2012
6890
1900
6329
2637
 688
18444
4395
2901
3956
 688
 20,730
 2,286
12%
Approximate Arrear from Jan-2011 to Dec-2012 after implementation of Merger of DA =
 42,660
Example-3 - Entitlement- Tpt= Rs.400 HRA=30% 
Pay in PB as on 01-01-2011 = Rs. 6750 Gde Pay= Rs. 2000
Month
Pay
inPB
Grade
Pay
Before DA Merger
After DA Merger
Difference 
DA
HRA
TPT
Total
D Pay
DA
HRA
TPT
Total
Rs.
%
Jan-2011
6750
2000
4463
2625
 604
16442
4375
131
3938
 604
 17,798
 1,356
8%
Dec-2012
7290
2000
6689
2787
 688
19454
4645
3066
4181
 688
 21,870
 2,416
12%
Approximate Arrear from Jan-2011 to Dec-2012 after implementation of Merger of DA =
 45,090
Example-4 - Entitlement- Tpt= Rs.800 HRA=30% Pay in PB as on 01-01-2011 = Rs. 8370 Gde Pay= Rs. 2400
Month
Pay
inPB
Grade
Pay
Before DA Merger
After DA Merger
Difference 
DA
HRA
TPT
Total
D Pay
DA
HRA
TPT
Total
Rs.
%
Jan-2011
8370
2400
5493
3231
 1,208
20702
5385
162
4847
 1,208
 22,372
 1,670
8%
Dec-2012
9040
2400
8237
3432
 1,376
24485
5720
3775
5148
 1,376
 27,459
 2,974
12%
Approximate Arrear from Jan-2011 to Dec-2012 after implementation of Merger of DA =
 55,506
Example-5 - Entitlement- Tpt= Rs.800 HRA=30% 
Pay in PB as on 01-01-2011 = Rs. 9540 Gde Pay= Rs. 2800
Month
Pay
inPB
Grade
Pay
Before DA Merger
After DA Merger
Difference 
DA
HRA
TPT
Total
D Pay
DA
HRA
TPT
Total
Rs.
%
Jan-2011
9540
2800
6293
3702
 1,208
23543
6170
185
5553
 1,208
 25,456
 1,913
8%
Dec-2012
10300
2800
9432
3930
 1,376
27838
6550
4323
5895
 1,376
 31,244
 3,406
12%
Approximate Arrear from Jan-2011 to Dec-2012 after implementation of Merger of DA =
 63,564