Promotion pay fixation under statutory rules cannot be reduced by executive circulars where the governing rule protects pay progression.

Rule 74(b) of the Orissa Service Code governed fixation of pay on promotion and required the initial pay to be fixed at the stage next above the pay notionally arrived at after adding the prescribed increment, so that promotion did not result in lower pay. Because the Code was framed under Article 309, executive circulars could not override or dilute the statutory rule. A circular-based fixation that reduced the employee's pay was therefore inconsistent with the governing provision and could not stand.

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Issues: Whether the appellant's pay on promotion to Assistant Engineer was required to be fixed under Rule 74(b) of the Orissa Service Code, or could be fixed in accordance with government circulars even if that resulted in a reduction of pay.

Analysis: Rule 74(b) provides that on promotion to a higher post, initial pay must be fixed at the stage next above the pay notionally arrived at by adding the prescribed increment, and the rule is intended to ensure that the employee does not receive less pay on promotion. The Orissa Service Code having been framed under Article 309 of the Constitution of India, executive circulars or instructions could not override, alter, or dilute the statutory rule. Since the circular-based fixation reduced the appellant's pay, it was inconsistent with the governing statutory provision.

Conclusion: The appellant's pay had to be fixed under Rule 74(b) of the Orissa Service Code, and the circular-based fixation was not sustainable.

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