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Supreme Court of India · 18/05/2022

RUSHIBHAI JAGDISHCHANDRA PATHAK versus BHAVNAGAR MUNICIPAL CORPORATION

[2022] 16 S.C.R. 1014 · 2022 INSC 592

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Summary

Bhavnagar Municipal Corporation employees were given, under the Gujarat Higher Grade Scale Scheme, the pay-scale of the next promotional post; by order of 28.10.2010 the Corporation called this an error, revised them to the next scale in the hierarchy and recovered the excess. In 2016 the Gujarat High Court, in a colleague's prompt challenge, held the Scheme gave the promotional post's scale, and the Corporation accepted that, but the appellants sued only in September 2017. A Single Judge granted the higher scale with arrears from 2010; the Division Bench, citing delay, allowed it only from the Single Judge's judgment. The Supreme Court partly allowed the appeals: wrong pay fixation is a recurring wrong, so under Tarsem Singh arrears are limited to three years before the writ petitions, with 7% interest from 01.09.2017.

Issues

  1. Whether, where a claim to a higher pay-scale rests on a continuing or recurring wrong but the employees approached the court belatedly, relief should be confined to the date of the judgment (as the Division Bench held), extend back to the date of the wrongful order, or be restricted to arrears for three years before the writ petition.
  2. Whether a public employer which has accepted a judicial interpretation of a pay scheme in one employee's case must extend it to all similarly situated employees, and the consequence for interest on arrears.

Provisions considered

Held

Result

Appeals partly allowed; the Gujarat High Court Division Bench judgment of 13.06.2019 in LPA No. 930 of 2019 partly set aside; the appellants held entitled to arrears in the pay-scale of Rs. 5,000-8,000 for three years prior to filing their writ petitions with 7% interest from 01.09.2017, payable within four months with a computation sheet; arrears from 2010 and refund of recovered amounts refused. No order as to costs.

Judgment PDF: Supreme Court of India, [2022] 16 S.C.R. 1014.