2010 (7) TMI 1154 - SC - Indian Laws

Summary

Issues Involved:
1. Entitlement of Tower Wagon Drivers (TWDs) to the same pay scale as Goods Drivers.
2. Legitimacy of the order dated 22nd February 2001 withdrawing the higher pay scale and directing recovery of excess amounts.
3. Jurisdiction of the Tribunal to examine the order passed by the Divisional Railway Manager.

Summary:

1. Entitlement of Tower Wagon Drivers (TWDs) to the same pay scale as Goods Drivers:
The respondents, working as TWDs under Eastern Railways, were promoted between 1979-1981 and claimed running allowance @ 120 k.m. per day in terms of para 3.12 of the New Running Allowance Rules. The High Court of Calcutta directed Eastern Railways to pay this allowance. Subsequently, Eastern Railways issued an order on 22nd February 2001 stating that higher pay scales were granted inadvertently and withdrew the same, directing recovery of excess amounts. The Tribunal found that TWDs were consistently treated at par with Goods Drivers and entitled to the same pay scale of Rs. 1350-2200/- (unrevised) w.e.f. 1.1.1986, and Rs. 5000-8000/- w.e.f. 1.1.1996. The Tribunal noted that the Railways failed to justify the decision to downgrade the pay scale and directed the continuation of the higher pay scale.

2. Legitimacy of the order dated 22nd February 2001 withdrawing the higher pay scale and directing recovery of excess amounts:
The Tribunal and the High Court found the order dated 22nd February 2001 to be arbitrary. The Tribunal observed that the respondents had been receiving the same pay scale as Goods Drivers for over 40 years, and there was no substantial difference in their duties and responsibilities. The Tribunal and the High Court rejected the Railways' contention that the higher pay scale was granted by mistake, noting the lack of cogent material to support this claim. The Tribunal emphasized that pay scales are a legitimate right of employees and cannot be varied without valid reasons and in accordance with law.

3. Jurisdiction of the Tribunal to examine the order passed by the Divisional Railway Manager:
The High Court upheld the Tribunal's jurisdiction to examine the order passed by the Divisional Railway Manager. The High Court found that TWDs were continuously treated as equivalent to Goods Drivers and there was no reason to treat them differently. The High Court rejected the Railways' contention that the Tribunal did not have jurisdiction to examine the order, affirming the Tribunal's decision.

Conclusion:
The Supreme Court dismissed the appeal, finding no legal infirmity in the judgments of the Tribunal and the High Court. The Court noted that the respondents had been treated as equivalent to Goods Drivers for a long period and there was no justification for altering their pay scale. The Court allowed the Union of India to pass an appropriate order regarding the pay scales of its employees afresh and in accordance with law, emphasizing the need for proper application of mind and consideration of appropriate material. The appeal was dismissed with no order as to costs.