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[Cites 2, Cited by 9]

Supreme Court of India

Director General Crpf vs Janardan Singh on 2 July, 2018

Equivalent citations: AIR 2018 SUPREME COURT 3101, 2018 LAB IC 3302, 2018 (6) ALJ 191, AIR 2018 SC (CIV) 2519, (2018) 6 MAD LJ 565, (2018) 4 LAB LN 307, (2018) 3 SCT 534, (2018) 8 SCALE 349, (2018) 5 SERVLR 442, (2018) 3 SERVLJ 316, (2018) 3 ESC 444, 2018 (7) SCC 656

Author: Ashok Bhushan

Bench: Ashok Bhushan, Adarsh Kumar Goel

                                                                                 1

                                                                     REPORTABLE

                                 IN THE SUPREME COURT OF INDIA

                                  CIVIL APPELLATE JURISDICTION

                                  CIVIL APPEAL NO.5850 OF 2011



                DIRECTOR GENERAL, CRPF & ORS.                   ...APPELLANTS 

                                              VERSUS 

                JANARDAN SINGH & ORS.                          ...RESPONDENTS



                                         J U D G M E N T

                ASHOK BHUSHAN,J.

1.   Director­General,   CRPF,   the   Union   of   India   and Addittional­Director­General, group centre, CRPF, has come   up   in   this   appeal   questioning   the   judgment   of Allahabad   High   Court   dated   14.02.2008   by   which judgment the High Court dismissed Writ Petition filed by   the   appellant   upholding   the   order   of   Central Administrative   Tribunal   dated   05.11.2007   by   which claim of Special (Duty) Allowance of the respondent was accepted. 

Signature Not Verified

2. Brief facts of the case are:

Digitally signed by

ASHWANI KUMAR Date: 2018.07.02 16:07:46 IST Reason:

The   Government   of   India,   Ministry   of   Finance 2 vide   its   Office  Memorandum   dated   14.12.1983  decided to extend certain benefits to the officers in service in   North   Eastern  Region  of   the  country.  One  of   the benefits   which   was   decided   to   be   extended   to   those employees/officers   was   to   grant   Special   (Duty) Allowance   on   posting   to   any   station   in   the   North Eastern  Region.  The  said   benefits   were   subsequently extended   to   the   employees   of   CRPF.   The   respondents 2,3  and  4  were  appointed  as  pharmacists  in  CRPF  on 08.09.1989,   28.06.1988   and   11.06.1981   respectively and   they   were   posted   in   different   places   in   India including   North   Eastern   Region.   A   letter   dated 31.03.1987   was   issued   by   Government   of   India, Ministry   of   Home   Affairs,   according   to   which   the benefit of O.M. dated 28.12.1983 read with O.M. dated 29.10.1986   is   to   be   extended   to   BSF,   CRPF   &   CISF personnel posted and serving in North Eastern Region having   their   Headquarters   in   that   region.   The respondents   submitted   an   application   regarding sanction of Special (Duty) Allowance. The respondent case  was   that  he   is  posted  in  North  Eastern  Region 3 and is entitled to Special (Duty) Allowance he being posted   in   unit   Johrat   in   Assam.   The   representation was replied by letter dated 15.04.2005 of office of the   commandant   stating   that   since   Headquarter   of Personnel   is   in   Shivpuri/Gwalior,   hence,   person   is not   entitled   for   Special   (Duty)   Allowance.   Letter from   Deputy­Inspector­General   of   Police   dated 11.07.2005   was   sent   to   the   Commandant,   CRPF, informing   that   although   Director­General   by   his letter dated 12.03.1992 has sent proposal to Ministry of Home Affairs that Special (Duty) Allowance should be given to all the battalions whose Headquarters are not in the North East but the battalions are deployed in   the   North   East.   It   was   further   stated   that   the consent of Ministry of Home Affairs has not yet been received.   On   3rd   August   2005,   Government   of   India, Ministry   of   Home   Affairs   issued   an   order   on   the subject:
"No. A­I­3/Inst­Accts­3/PF­III Government of India    Ministry of Home Affairs 4 North Block, New Delhi     Dated,   the   3rd August, 2005       OFFICE MEMORANDUM SUB:   ALLOWANCE   AND   FACILITIES   FOR CIVILIAN   EMPLOYEES   OF   THE   CENTRAL GOVERNMENT   SERVING   IN   THE   STATES   AND UNION   TERRITORIES   OF   NORTH   EASTERN REGION, ANDAMAN AND NICOBAR ISLANDS AND LAKSHADWEEP.” 

3.   The   Order   clarified   that   allowance   to   be admissible to the personnel who were actually working in   the   North   East   Region.   The   respondents   filed Original   Application   No.778   of   2006   before   Central Administrative   Tribunal   claiming   grant   of   Special (Duty) Allowance as per the Order dated 14.12.1983. The  Central  Administrative   Tribunal  by   its   judgment and Order dated 05.11.2007 directed for sanction of Special   (Duty)   Allowance   to   the   applicants   for   the period they have actually worked in the North Eastern Region.   Against   the   Order   of   Tribunal,   appellant filed a Writ Petition in Allahabad High Court which was  dismissed   on   14.02.2008  aggreived   against   which Order the present appeal has been filed. 5

4. The issue in this appeal is a very limited issue i.e.   whether   the   respondents   were   entitled   for Special (Duty) Allowances for the period during which they   were   posted   in   North   Eastern   Region   from   the date of their posting in the North Eastern Region or only   with   effect   from   03.08.2005   when   the   Office Memorandum   was   issued   by   the   Government   of   India which allowed the claim of CPF personnels.

5. Learned Counsel for the appellant submits that the claim of respondents for Special (Duty) Allowance was earlier rejected since, although they were working in the North East Region but their Headquarters were in Shivpuri/Gwalior. He submits that by Government Order dated 03.08.2005 it was decided to extend benefits to all whether their Headquarters are in North Eastern Region or not. Thus, he submits that the respondents were entitled for Special (Duty) Allowance only with effect   from   03.08.2005.   Both   Tribunal   and   the   High Court committed an error in directing for payment of Special (Duty) Allowance to the respondents for the 6 entire   period   when   they   were   posted   in   the   North Eastern Region. The respondents were not eligible for Special   (Duty)   Allowance   since   as   when   they   were deployed   in   the   North   Eastern   Region   their Headquarters   were   situated   outside   of   North  Eastern Region.

6.   The   submissions   are   refuted   by   learned   counsel appearing for the respondents. It is contended that Special   (Duty)   Allowance   was   granted   to   those   who were   employed   in   North   Eastern   Region.   There   is   no dispute that respondents were posted in North Eastern Region. Their claim could not have been denied on the ground that although their battalions were posted in North Eastern Region but their Headquarters were out of   North   Eastern   Region.   He   submits   that   the Government   Order   dated   03.08.2005   is   clarificatory which   makes   it   clear   that   all   personnels   who   were posted in North Eastern Region were entitled for the benefits as per the O.M. dated 14.12.1983 read with O.M. dated 29.05.2002. 

7. The Office Memorandum dated 03.08.2005 is to the 7 following effect:

"   No. A­I­3/Inst­Accts­3/PF­III Government of India    Ministry of Home Affairs North Block, New Delhi Dated, the 3rd August, 2005       OFFICE MEMORANDUM SUB:   ALLOWANCE   AND   FACILITIES   FOR CIVILIAN   EMPLOYEES   OF   THE   CENTRAL GOVERNMENT   SERVING   IN   THE   STATES   AND UNION   TERRITORIES   OF   NORTH   EASTERN REGION, ANDAMAN AND NICOBAR ISLANDS AND LAKSHADWEEP.
I   am   directed   to   refer   to   the Ministry's   letter   no.II–27012/31/85­FP­ II dated 31.03.1987 vide which the CPF personnel   posted   in   the   North   Eastern Region and not having their Headquarter in   the   North   Eastern   Region   were   not getting   Special   (Duty)   Allowance because   of   condition   that   the Headquarters   of   such   personnel   should also be in North East.
2. The   matter   has   since   been   examined in   consultation   with   Ministry   of Finance   and   it   has   been   decided   to consider   and   allow   the   claim   of   CPF personnel delpoyed in North East Region in   the   light   of   criteria   laid   down   in Finance   Minsitry's O.M.No.20014/3/83­E­IV   dated   14.12.1983 read with their O.M.No.11(5)/97­E­II(B) 8 dated   29.05.2002.   It   is   also   clarified that   the   allowance   would   be   admissible only to the personnel who are actually working in the North East Region.
3.   The   issues   with   the   concurrence   of Ministry   of   Finance,   Deptt.   of Expenditure, E­II(B) Branch vide UO No. 315/05   dated   10.08.2005   and   integrated Finance   Division   of   this   Ministry   vide their   Dy.   No.748/Fin.11/05   dated 03.08.2005.
Sd/­         (Ranjanesh Sahai)    Director(Police Finance)”

8. Paragraph   2   of   the   Office   Memorandum   indicates that   it   was   decided   to   allow   the   claim   of   CPF personnels   deployed   in   North   Eastern   Region   in   the light   of   criteria   laid   down   in   Office   Memorandum dated   14.12.1983   read   with   Office   Memorandum   dated 29.05.2002.  It   was   further  clarified  that  allowance would be admissible only to the personnels who were actually working in the North Eastern Region.

9. The issue is to whether the benefit of the above Office   Memorandum   is   to   be   given   with   effect   from 03.08.2005   only   or   the   benefit   of   Special   (Duty) Allowance is admissible after Office Memorandum dated 9 14.12.1983   was   decided   to   be   extended   to   CRPF personnels   in   the   year   1987.   The   main   Office Memorandum   by   which   Special   (Duty)   Allowance   was decided   to   be   granted   is   dated   14.12.1983.   The purpose and object for granting the said benefit is explained   in   opening   paragraph   of   Office   Memorandum which is to the following effect:

" The   need   for   attracting   and retaining   the   services   of   competent officers   of   service   in   the   North Eastern Region comprising the State of Assam,   Meghalaya,   Manipur,   Nagaland and Tripura and the Union Territories of   Arunachal   Pradesh   and   Mizoram   has been   engaging   the   attention   of   the Government   for   some   time.   The Government   had   appointed   a   Committee under   the   Chairmanship   of   Secretary, Department   of   Personnel   & Administrative   Reforms,   to   review   the existing   allowances   and   facilities admissible   in   the   various   categories of   Civilian   Central   Government employees   serving   in   this   region   and to   suggest   suitable   improvements.   The recommendations   of   the   Committee   have been   carefully   considered   by   the Government   and   the   President   is   now released to decide as following...."

10.  Further,   Special   (Duty)  Allowance   is   sanctioned 10 by same Office Memorandum which is to the following effect:

"(iii) Special (Duty) Allowance:­ Central   Government   civilian employees   who   have   All­India   transfer liability   will   be   granted   a   Special (Duty) Allowance at the rate of 25 per cent of basic pay subject to a ceiling of   Rs.400/­   per   month   on   posting   to any   station   in   the   North   Eastern Region....."

11. A   perusal   of   the   aforesaid   clearly   indicates that genesis of grant of Special (Duty) Allowance was posting of person in North Eastern Region. The said benefits   were   extended   to   attract   and   retain   the services of the competent officers serving in North Eastern Region. 

12. There   is   no   dispute   that   the   said   benefit   was extended   to   CRPF   personnels   also.   The   benefit   as extended   by   Office   Memorandum   dated   14.12.1983   was revised from time to time and by 29.08.1986 revised orders   were   issued   with   effect   from   01.10.1986, benefit   of   which   orders   was   claimed   in   the   claim petition   filed   by   the   respondents   before   the 11 Tribunal.

13. A   perusal   of   the   letter   dated   15.04.2005 (Annexure­P5) indicates that only reason for denying the Special (Duty) Allowance to the respondents was that their Headquarters were in Shivpuri/Gwalior i.e. out   of   North   Eastern   Region   although   there   was   no denial   that   their   posting   was   in   North   Eastern Region. 

14. The   purpose   and   object   of   granting   the   benefit as   noticed  above  was   to  reward  the   persons  who   are posted in the North Eastern Region. The Tribunal has directed for granting the benefit to the respondents for the period they have actually worked in the North Eastern Region. When the basis for granting Special (Duty) Allowance was posting in North Eastern Region, we   fail   to   see   that   how   the   respondents   who   were posted   in   the   North   Eastern   Region   would   have   been denied   the   Special   (Duty)   Allowance   on   the   ground that their Headquarters are in Shivpuri/Gwalior. The benefit   is   attached   to   their   posting   in   the   North Eastern   Region   and   denial   on   the   ground   that   their 12 Headquarters   are   in   Shivpuri/Gwalior   has   no   nexus with their claim. The Tribunal has allowed that claim which has been affirmed by the High Court.

15. Much emphasis has been given by the counsel for the   appellant   that   Order   dated   03.08.2005   has prospective   application   only   and   the   benefit   could have given only with effect from 03.08.2005 by which period   some   of   the   respondents   were   posted   out   of North Eastern Region. 

16. A perusal of the Order dated 03.08.2005 does not indicate   that   the   said   benefit   was   intended   only after 03.08.2005. Paragraph 2 of the order uses the words   "it   is   clarified   that   allowance   would   be admissible to the personnels who are actually working in   the  North  East  Region".   The  Order  issued  by   the Government was clarificatory in nature. 

17. We have already noticed that by Government Order dated   31.03.1987   Special   (Duty)   Allowance   was extended   to   CRPF   personnel   posted   and   serving   in North East Region who had their Headquarters also in that   region.   Obvious   inference   was   that   those 13 personnel   posted   and   serving   in   North   East   Region whose Headquarters were not in that region were not entitled to the benefit. Whether such classification for extending the benefit to one class of personnel who were both posted and serving there and had their Headquarter   there   and   those   personnels   who   were posted and serving there and having their Headquarter outside   the   North   East   Region   is   valid   or   not   and passes the test of equality before law under Article 14 is the question also needs to be considered.

18. Article   14   does   not   prohibit   reasonable classification   but   for   passing   test   of   permissible classification   there   are   two   conditions   which   have been time and again laid down and reiterated. It is useful to refer to the Constitution Bench judgment of this   Court   in  AIR   1955   SC   191,   Budhan   Choudhary versus State of Bihar. In paragraph 5, following has been laid down:­ "5....It   is   now   well   established that   while   Article   14   forbids   class legislation,   it   does   not   forbid reasonable   classification   for   the purposes   of   legislation.   In   order, 14 however,   to   pass   the   test   of permissible   classification   two conditions   must  be   fulfilled,   namely,

(i)   that   the   classification   must   be founded on an intelligible differentia which   distinguishes  persons  or   things that are grouped together from others left   out   of   the   group   and   (ii)   that differentia   must   have   a   rational relation   to   the   object   sought   to   be achieved   by   the   statute   in   question. The   classification   may   be   founded   on different bases; namely, geographical, or according to objects or occupations or the like. What is necessary is that there   must   be   a   nexus   between   the basis of classification and the object of the Act under consideration. It is also well established by the decisions of this Court that Article 14 condemns discrimination   not   only   by   a substantive  law  but  also   by  a  law  of procedure..."

19. Another judgment which needs to be noticed with regard to Article 14 is a judgment of this Court in AIR 1970 SC 1453, Harakchand Ratanchand Banthia and others   vs.   Union   of   India   and   others.  In   paragraph 23, following has been laid down:

“23....When   a   law   is   challenged   as violative   of   Article   14   of   the Constitution   it   is   necessary   in   the first   place   to   ascertain   the   policy underlying the statute and the object intended to be achieved by it. Having ascertained   the   policy   and   object   of 15 the Act the Court has to apply a dual test   in   examining   its   validity   (1) whether the classification is rational and   based   upon   an   intelligible differentia   which   distinguishes persons   or   things   that   are   grouped together from others that are left out of the group and (2)whether the basis of   differentiation   has   any   rational nexus   or   relation   with   its   avowed policy and object..."

20. When   we   apply   the   ratio   as   laid   down   above   we find   that   there   is   no   intelligible   differentia between two classes of employees posted and serving in   North   East  Region   as  noted  above.  The   policy  of law   as   is   clear   from   the   original   Government   Order dated   14.12.1983,  it   is   clear   that   Government   came with the scheme of Special (Duty) Allowance with the object   and   purpose   of   encouraging,   attracting   and retaining the services of the officers in the North Eastern Region. To differentiate the employees in two categories   i.e.   (i)   whose   Headquarters   are   within North Eastern Region and (ii) whose Headquarters are outside   the   North   Eastern   Region,   clearly   indicate that   classification   is   not   founded   on   any intelligible differentia.

16

21. Further the differentia has no rational relation to the object sought to be achieved. When the purpose is   to   encourage   and   retain   the   personnel   in   North Eastern Region to deny the benefit of Special (Duty) Allowance to those who although posted and serving in North   Eastern   Region   have   their  Headquarter  outside the   North   East   Region   does   not   have   any   rational nexus with object sought to be achieved.

22.   The   classification   as   made   in   the   Government Order dated 31.03.1987 does not pass the twin test as noted   above.   The   Government   having   itself   realised the error has corrected the same by Government Order dated   03.08.2005   permitted   the   Special   (Duty) Allowance to all who are posted and serving in North East   Region   irrespective   of   the   facts   as   whether their   Headquarters   are   within   the   North   Eastern Region or outside the North Eastern Region.

23. When the earlier classification as envisaged by Government   Order   dated   31.03.1987   itself   not   been valid to deny the benefit to those who were entitled to   the   Special   (Duty)   Allowance   on   the   ground   that 17 Government   came   with   the   clarification   only   on 03.08.2005 shall neither be equitable nor shall stand the test of equality before the law.

24. When the denial as noted above did not pass the twin   test   of   valid   classification   and   was unconstitutional   to   deny   the   said   benefit   on   the premise that Government corrected its error only on 03.08.2005,  hence,   with  effect   from  03.08.2005   only the   benefit   should   be   given   does   not   appeal   to reason.

25. In view of foregoing discussions, we do not find any ground to interfere with the judgment of the High Court. In the result, the appeal is dismissed.

..........................J. ( ADARSH KUMAR GOEL ) ..........................J.     ( ASHOK BHUSHAN ) NEW DELHI, JULY 02,  2018