Employees recruited through same examination and allocated to different departments are entitled to parity in pay scale

Supreme Court Upholds Pay Parity for Jharkhand Employees Apex Court Restores Single Judge’s Order Granting Higher Pay Scale to Employees Affected by Anomalies

In a significant ruling, the Supreme Court of India has reinstated the judgment of a Single Judge from the High Court of Jharkhand, affirming the entitlement of employees to a higher pay scale. This decision comes as a relief to employees originally recruited through a common competitive examination and later allocated to different departments, who were facing disparities in pay scales.

The bench, comprising Justices J.K. Maheshwari and Vijay Bishnoi, delivered the judgment in the case of Sanjay Kumar Upadhyay v. State of Jharkhand, setting aside the earlier judgment of the Division Bench of the Jharkhand High Court. The Supreme Court held that the employees recruited through a common examination should receive parity in pay scales, as disparities without reasonable classification violate Article 14 of the Constitution of India, which ensures equality before the law.

The crux of the dispute revolved around the allocation of different pay scales to employees recruited for various posts through the same examination, which was deemed discriminatory. The Supreme Court underscored that the allocation of employees to different departments was purely administrative and not based on merit. Thus, any disparity in pay scales was unjustifiable.

The court also emphasized the importance of the Bihar Reorganisation Act, 2000, particularly Section 34, which mandates that orders passed by the Patna High Court before the reorganization of Bihar have a binding effect on the High Court of Jharkhand. The judgment clarified that the earlier decision by the Patna High Court, which granted a higher pay scale to similarly situated employees, should be respected and followed by the Jharkhand High Court.

Furthermore, the Supreme Court dismissed the argument of delay and laches, noting that the claim for pay parity is a continuing cause of action. The bench highlighted that the right to correct pay persists throughout the tenure of service, and any delay in filing the writ petition does not bar the claim for rectification of pay anomalies.

The judgment concluded by directing the State of Jharkhand to implement the revised pay scale for the appellant, Sanjay Kumar Upadhyay, and similarly situated employees within three months. The court also awarded the appellant the cost of litigation as per the rules.

Bottom Line:

Employees recruited through common examination and allocated to different departments are entitled to parity in pay scale if similarly situated. Delay in filing writ is not fatal in cases involving continuing violation of rights.

Statutory provision(s): Article 14 of the Constitution of India, Bihar Reorganisation Act, 2000 Section 34

Sanjay Kumar Upadhyay v. State of Jharkhand, (SC) : Law Finder Doc Id # 2822448