Supreme Court Upholds Pay Parity Based on Historical Similarity in Pay Scales

Supreme Court Law Insider

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Published on: November 13, 2023 at 17:40 IST

The Supreme Court has upheld a Delhi High Court judgment that considers historical similarity in pay scales to address anomalies, ruling that courts can intervene in pay scale fixation.

The case involved Assistant and Personal Assistants of Ordnance Factory Board, Headquarters seeking the same pay scale as counterparts in Central Secretariat Service (CSS) and similar cadres.

The Supreme Court bench, comprising Justices AS Bopanna and PS Narasimha, affirmed the High Court’s decision, emphasizing that courts should not determine pay scales by comparing dissimilarly placed employees.

However, it acknowledged that relief should be granted when entitlement is denied due to irrational considerations without proper application of mind by the employer.

The case originated from an Association of Employees in the Headquarters of Ordnance Factory Board seeking pay scale upgrades for certain positions.

The Central Administrative Tribunal initially denied the parity in pay scales, but the High Court set aside the order, stating that the respondents were entitled to pay parity based on the VIth Central Pay Commission recommendations.

The Union (Appellant) contested this in the Supreme Court, arguing that judicial review should only occur in cases of arbitrariness or discrimination. The Court noted the High Court’s reliance on historical pay scale similarities and the VIth CPC recommendations, refusing to interfere with the decision.

The Supreme Court agreed with the High Court’s reasoning, stating that the High Court rectified a pay anomaly by considering the historical similarity in pay scales and the discriminatory aspects despite the differences in organizations. The Court concluded that the High Court’s decision did not warrant interference.

Case Title: Union of India Vs. D.G.O.F. Employees Association, Civil Appeal No.1663 of 2016

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