TaxTMI 
TaxTMI 
2009 (5) TMI 1022
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....for the purpose of trading in foodgrains and other foodstuffs and for matters connected therewith and incidental thereto. The matter relating to recruitment of staff in the Food Corporation of India is governed by Section 12 of the Act, which reads as under: "12. Officers and other employees of Corporation - (1) The Central Government shall, after consultation with the Corporation, appoint a person to be the Secretary of the Corporation. (2) Subject to such rules as may be made by the Central Government in this behalf, the Corporation may appoint such other officers and employees as it considers necessary for the efficient performance of its functions." 5. In the year 1968, however, Section 12A was inserted in the Act so as to enable the Central Government to make an order directing its employees to be transferred to the services of the Food Corporation of India. Those employees who had been working as deputationists from the Central Government were absorbed. They admittedly were given one extra increment purported to be on the basis of a circular letter issued in this behalf. In the year 1984, an option was given to the respondents herein for being absorbed in the Food Corp....
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....the Central Government employees by reason of a separate rule as concededly, the nature and content of the job required to be performed by the employees whether drawn from the Central Government or from the State Government being the same, no discrimination could be caused amongst the employees similarly situated. (ii) The writ petition having immediately been filed after the decision of this Court, it was not barred by delay or laches. 9. Upon establishment of the Food Corporation of India, several circular letters were issued. The said circular letters were compiled in an Office Manual; Paragraph 4.70 whereof reads as under: "4.70 Pay on first appointment The pay of an employee on first appointment to a post in the service of the Corporation shall be fixed at the minimum of the time scale applicable to the post to which he is appointed, or where the post is on a fixed pay, such fixed pay. Provided that where any person appointed to a post to which a time-scale is applicable has been in continuous service for a period of not less than 2 years in any Department of the Central or any State Government or any Public Sector or Private Sector Undertaking immediately preceding suc....
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....than the pay last drawn and the grant of one advance increment, provided that the total monetary benefit resulting from the fixation of pay on the above basis does not exceed the limits specified below:- Corporation's pay scale ending at Rs. 250/- or less Rs. 10/- Corporation's pay scale ending at Rs. 550/- or less but above Rs. 250/- Rs. 20/- Corporation's pay scale ending at Rs. 700/- or less, but above Rs. 550/-. Rs. 40/- Corporation's pay scale ending at Rs. 1000/- or less, but above Rs. 700/- Rs. 60/- Corporation's pay scale ending at above Rs. 1000/- Rs. 75/- (b) Where as a result of fixation of pay in accordance with the above principles, the maximum monetary limits mentioned are exceeded, pay should be fixed at the next higher stage than the pay actually last drawn by an employee, without granting an advance increment, but personal pay should be allowed to the extent necessary in order to enable the employee to derive a total monetary benefit upto the maximum limit specified above, such personal pay being absorbed in future increments, i.e., the difference between the present pay in the Food Department plus the maximum monetary benefit mentioned above, and the r....
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....were appointed to a post to which a time scale was applicable. They were in continuous service for not less than two years. Paragraph 4.70 of the Manual and Regulation 81 of the Regulations are attracted both in the case of the Central Government employees and the State Government employees. Concededly, in the case of the Central Government employees, the said benefit had been extended. 16. Before the High Court, the Corporation conceded that the nature of duties, qualification and service conditions of both set of employees stand on similar footings. 17. The deputationists were not the employees of the Corporation. They were still on the State Cadre. They became the employees only on their absorption. The circular letter inviting options stated so in unmistakable terms. 18. The learned Additional Solicitor General drew our attention to the statements made in the rejoinder affidavit to show as to how the Central Government employees were different from that of the State Government employees. Only because, according to the Corporation, they were treated differently, in our opinion, by itself cannot be a ground not to apply the rules applicable to the employees of the Food Corpor....
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....ave been raised in the earlier application as the respondents were not certain as to whether they would be fitted as Assistant Grade-II or Assistant Grade-III. 21. Strong reliance has been placed by Mr. Saran on a decision of this Court in State of Tamil Nadu v. Seshachalam [(2007) 10 SCC 137] wherein this Court held : "Some of the respondents might have filed representations but filing of representations alone would not save the period of limitation. Delay or latches is a relevant factor for a court of law to determine the question as to whether the claim made by an applicant deserves consideration. Delay and/or latches on the part of a Government servant may deprive him of the benefit which had been given to others. Article 14 of the Constitution of India would not, in a situation of that nature, be attracted as it is well known that law leans in favour of those who are alert and vigilant. Opinion of the High Court that GOMs No. 126 dated 29.5.1998 gave a fresh lease of life having regard to the legitimate expectation, in our opinion, is based on a wrong premise. Legitimate expectation is a part of the principles of natural justice. No fresh right can be created by invoking th....
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....se of such a power. Nor, indeed, could any other writ or direction be issued in respect of it, as there is no right in the applicant which is capable of being protected or enforced." To the similar effect is the decision of this Court in Union of India v. R. Rajeshwaran & Anr. [(2003) 9 SCC 294] wherein again in the context of grant of admission in a medical college, reservation of some seats in some medical colleges, it was held : "9. In Ajit Singh (II) v. State of Punjab this Court held that Article 16(4) of the Constitution confers a discretion and does not create any constitutional duty and obligation. Language of Article 15(4) is identical and the view in Comptroller and Auditor General of India, Gian Prakash v. K.S. Jagannathan and Superintending Engineer, Public Health v. Kuldeep Singh that a mandamus can be issued either to provide for reservation or for relaxation is not correct and runs counter to judgments of earlier Constitution Benches and, therefore, these two judgments cannot be held to be laying down the correct law. In these circumstances, neither the respondent in the present case could have sought for a direction nor the High Court could have granted the same.....
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....opt for permanent absorption in the service of the Corporation will be treated as direct recruit and will be subject to the terms and conditions as prescribed in FCI (Staff) Regulations, 1971." 25. If respondents, thus, were to be treated as direct recruits subject to the terms and conditions and as prescribed in FCI Staff Regulations, 1971, in law they were also required to be treated alike as having entered the services of the Corporation for the first time. Even their seniority in the post in which they were absorbed was to be accounted from the date of absorption in the Corporation. Thus, for all intent and purport, the past services of the Central Government employees and the State Government employee whether appointed in the service of the Corporation by way of transfer or by way of absorption would result in cessation of relationship of employer and employee between the Central Government or the State Government as the case may be and the employees concerned. In other words, until their absorption, the respondents were the employees of the State Government and they become the employees of the Corporation only upon their absorptions. Furthermore in the cases of both the Cent....
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....ntral Government did not get any gratuity from their parent department in respect of their services rendered with the Government of India. Whereas the Deputationists Employees had received their gratuity and pro-rata pension from their parent department for the services they rendered with the Government of West Bengal. g. FCI Staff Regulations, 1971 was not in existence at the initial stage of the transfer of the RDR Employees in FCI. Whereas at the time of the absorption of the Deputationist Employees in FCI, the FCI (Staff) Regulations, 1971 were in existence." 27. We would deal with them in seriatum. a. The conditions of service of employees from two different sources can not be different only because they were recruited from different sources. In view of the fact that both the set of employees were governed by the same set of regulations, it would not be correct to contend that the transferees from the Central Government had no option. b. It was for the Central Government to issue an appropriate notification in terms of Section 12A(1) of the Act. Only when such an order was issued, sub-section (3) thereof would come into play. Applicability of a rule would not depend upo....
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....ated differently. It is, therefore, not a case where persons differently situated are being treated differently as was submitted by Mr. Saran. Equally meritless is the plea of the learned Additional Solicitor General that fixation of pay-scale should be left to the expert or employer. Strong reliance has been placed in this connection on State of Haryana & Ors. v. Charanjit Singh & Ors. [(2006) 9 SCC 321], wherein this Court has held : "19. Having considered the authorities and the submissions we are of the view that the authorities in the cases of Jasmer Singh, Tilak Raj, Orissa University of Agriculture & Technology and Tarun K. Roy lay down the correct law. Undoubtedly, the doctrine of "equal pay for equal work" is not an abstract doctrine and is capable of being enforced in a court of law. But equal pay must be for equal work of equal value. The principle of "equal pay for equal work" has no mechanical application in every case. Article 14 permits reasonable classification based on qualities or characteristics of persons recruited and grouped together, as against those who were left out. Of course, the qualities or characteristics must have a reasonable relation to the objec....
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....ant factors are fulfilled it may direct payment of equal pay from the date of the filing of the respective writ petition. In all these cases, we find that the High Court has blindly proceeded on the basis that the doctrine of equal pay for equal work applies without examining any relevant factors." In Union of India & Ors. v. Dineshan K.K. [(2008) 1 SCC 586], it was stated "16. Yet again in a recent decision in State of Haryana v. Charanjit Singh a Bench of three learned Judges, while affirming the view taken by this Court in State of Haryana v. Jasmer Singh, Tilak Raj8, Orissa University of Agriculture & Technology v. Manoj K. Mohanty and Govt. of W.B. v. Tarun K. Roy has reiterated that the doctrine of equal pay for equal work is not an abstract doctrine and is capable of being enforced in a court of law. Inter alia, observing that equal pay must be for equal work of equal value and that the principle of equal pay for equal work has no mathematical application in every case, it has been held that Article 14 permits reasonable classification based on qualities or characteristics of persons recruited and grouped together, as against those who are left out. Of course, the qualiti....