Services Rendered By Employee On Work Charge Basis Can't Be Considered For First Time Bound Promotion When He Is Absorbed On A Different Payscale: Supreme Court

The Supreme Court has held that the services rendered by an employee on work charge basis can not be considered for the grant of benefit of first time bound promotion if the employee is absorbed in service on a different payscale.

A Bench comprising Justice MR Shah and Justice BV Nagarathna also observed that the benefit of Time Bound Promotion scheme shall be applicable when an employee has worked for twelve years in the same post and in the same pay scale(The State of Maharashtra and another vs Madhukar Antu Patil).

The Bench was considering a civil appeal filed by the State of Maharashtra challenging Bombay High Court's order upholding the order passed by Maharashtra Administrative Tribunal, Mumbai.

The Tribunal through its order had set aside Government orders that down-graded the employee's pay scale and pension.

In the present case, the dispute was regarding whether the employee who was working as Technical Assistant on work charge basis from 1982 and was absorbed in the year 1989 on post of Civil Engineering Assistant with a different pay scale, would be entitled to Time Bound Promotion (TBP ) on completion of twelve years of service from 1982 or from the date of his absorption in the post of Civil Engineering Assistant. The Administrative Tribunal set aside the downgrading order and directed the grant of TBP reckoning his service from 1982. The High Court affirmed the Tribunal's order. Thus, the matter reached the Supreme Court at the instance of the State.

While noting that the employee was absorbed on the newly created post of Civil Engineering Assistant which carried a different pay scale, the Supreme Court held that the contesting respondent will be entitled to the first TBP on completion of twelve years from the year 1989, i.e., from the date on which he was absorbed on the post of Civil Engineering Assistant and his pay scale and pension are to be revised accordingly.

The Court has therefore quashed the impugned judgment and order passed by the High Court as well as that of the Tribunal setting aside orders down-grading the pay scale and pension of the contesting respondent.

The Bench has however directed that on re-fixation of Respondent's pay scale and pension, there will not be any recovery of the amount already paid to the respondent. This direction has been issued considering that the grant of first TBP considering his initial period of appointment of 1982 was not due to any misrepresentation by the contesting respondent and the same was granted on the approval of the Government and the Finance Department.

The Bench observed that if the contesting respondent would have been absorbed on the same post of Technical Assistant on which he was serving on work charge basis, the position may have been different.

With regard to the High Court's finding that the first TBP was granted on the approval of the Government and the Finance Department and the same cannot be modified or withdrawn, the Bench has observed that merely because the benefit of the first TBP was granted after the approval of the Department that cannot be a ground to continue the same.

"At the outset, it is required to be noted and it is not in dispute that respondent no.1 was initially appointed on 11.05.1982 as a Technical Assistant on work charge basis. It is also not in dispute that thereafter he was absorbed in the year 1989 on the newly created post of Civil Engineering Assistant, which carried a different pay scale. Therefore, when the contesting respondent was absorbed in the year 1989 on the newly created post of Civil Engineering Assistant which carried a different pay scale, he shall be entitled to the first TBP on completion of twelve years of service from the date of his absorption in the post of Civil Engineering Assistant. The services rendered by the contesting respondent as Technical Assistant on work charge basis from 11.05.1982 could not have been considered for the grant of benefit of first TBP. If the contesting respondent would have been absorbed on the same post of Technical Assistant on which he was serving on work charge basis, the position may have been different. The benefit of TBP scheme shall be applicable when an employee has worked for twelve years in the same post and in the same pay scale", the bench observed. 

Case Title: The State of Maharashtra and another vs Madhukar Antu Patil and another, CA 1985/2022

Citation : 2022 LiveLaw (SC) 308

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