High Court of KeralaDivision BenchOriginal Petition dismissed; Tribunal order mai...

State of Kerala v. C.S. Mohanakumar and Others (OP(KAT) 232/2019)

Case / Petition Number:OP(KAT) 232/2019
Neutral Citation:/

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • A. Muhamed Mustaque
  • Shoba Annamma Eapen
Judgment Date
2023-12-22
Court Decision / Holding
The original petition is dismissed. The High Court does not interfere with the Kerala Administrative Tribunal’s order, and the government’s challenge is rejected. The Tribunal’s directions awarding pay/allowances in the promoted post from the date of regularisation are sustained within the statutory limits, particularly with regard to Rule 23(d) limitations post-1 March 2007. The matter is disposed of accordingly.
Final Disposition
Original Petition dismissed; Tribunal order maintained and not interfered with.

Parties to the Case

Appellants / Petitioners

  • State of Kerala

Respondents

  • C.S. Mohanakumar
  • V.P. Kuttisankaran
  • V. Sajeendran

Legal Representation & Advocates

Counsels for Petitioners

  • • Advocate General Shri A.J. Varghese (Govt Pleader)

Counsels for Respondents

  • • Rajesh P. Nair

Case Synopsis & Summary

This is an original petition filed by the State of Kerala challenging an order of the Kerala Administrative Tribunal (O.A. No. 1423/2017) concerning pay and promotion in the cadre of Finance Officer Grade-I. The respondents, three Senior Finance Officers, were promoted after vacancies, but alleged denial of arrears and seniority. The Tribunal initially ruled in favor of the respondents, holding that they were entitled to pay and allowances in the promoted post from the date of regularisation or as determined by the Tribunal’s direction. The Government challenged the Tribunal’s directions, invoking Union of India v. N.C. Murali (2017) 13 SCC 575, and arguing that promotion rights crystallise only on actual promotion, unless a specific rule entitles promotion from the vacancy date. The judgement discusses the Kerala Service Rules (KSR), particularly Rule 23 and its sub-clauses (a)-(d), and reflects on the absence of a DPC between 1984 and 2001. It acknowledges that Rule 23(d) (in force from 1 March 2007) restricts monetary benefits to one year prior to the order of promotion. The Court ultimately upholds the Tribunal’s order and dismisses the State’s petition, holding that regularisation prior to 1 March 2007 limits back pay and that there is no scope to interfere with the Tribunal’s directions.

Provisions of Law Cited

Chapter III Part I KSRRule 23(a) KSRRule 23(b) KSRRule 23(c) KSRRule 23(d) KSR

Submissions & Arguments

Contentions of Appellants / Petitioners

The State contends that, in the absence of a specific rule entitling promotion from the date of vacancy, the right to promotion does not crystallize at vacancy and the actual date of promotion governs seniority and pay. It challenges the Tribunal’s directions for retrospective pro forma promotions and retrospective seniority dating from the vacancy, arguing that such retroactive benefits contravene Rule 23 and the Kerala Service Rules. Relying on Union of India v. N.C. Murali (2017) 13 SCC 575, the State argues that DPC non-holding between 1984 and 2001 cannot justify backdated promotions, and that monetary benefits should be governed by Rule 23(d) (in force from 1 March 2007), limiting arrears to one year prior to the order of promotion. It also notes that the 2015 GO (No. 1/12/2015) sanctioned promotions for certain applicants without back arrears, reinforcing the position.

Contentions of Respondents

The respondents contend that the duties and responsibilities of Finance Officer Grade-I are identical to those of the Finance Officers; denial of the higher post pay and seniority is a deprivation of legitimate pay due. They argue that the Tribunal rightly held that promotions and pay were due from the date of regularisation or date of actual promotion and that back arrears may be warranted in certain circumstances. They invoke the principle that retrospective promotions can be justified in limited circumstances, including statutory rules mandating promotions by a certain time or on vacancy, and point to the Apex Court’s discussion in M.C. Murali (and related authorities) about retrospective promotion with or without financial benefits, and the sealed-cover scenarios as examples where retrospective relief may be warranted.

Cited Precedents (5)

Case NameCitationTreatmentExplanation
Union of India and Others v. N.C.Murali and Others(2017) 13 SCC 575PositiveCited to support the proposition that unless a specific rule entitles promotion from the date of vacancy, the right to promotion crystallizes on the actual date of promotion.
M.C.Murali—Mentioned OnlyReferenced for para 18’s discussion on possible retrospective promotions with or without financial benefits; not binding in this case.
M.K.Sucheendran v. State of Kerala2005(3) KLT 499Mentioned OnlyExhibited judgment; cited in appendix, not central to reasoning presented in body.
Thomas Paul v. State of KeralaWP(C) No.32386/2008Mentioned OnlyExhibited judgment; cited as background jurisprudence in the appendix.
State of Kerala v. E.K. Bhaskar Pillai(2007) IN SC 417Mentioned OnlyExhibited judgment; background authorities referenced.

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Extracted Judgment Text

Exact text extracted from official judgment records.

``` IN THE HIGH COURT OF KERALA AT ERNAKULAM ``` ``` PRESENT ``` ``` THE HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE ``` **==> picture [8 x 8] intentionally omitted <==** ``` THE HONOURABLE MRS. JUSTICE SHOBA ANNAMMA EAPEN ``` ``` FRIDAY, THE 22[ND] DAY OF DECEMBER 2023 / 1ST POUSHA, 1945 ``` **==> picture [166 x 13] intentionally omitted <==** ``` AGAINST THE ORDER OA 1423/2017 OF KERALA ADMINISTRATIVE TRIBUNAL, THIRUVANANTHAPURAM ``` ``` PETITIONER/S: ``` ``` STATE OF KERALA, REPRESENTED BY THE ADDITIONAL CHIEF SECRTARY TO GOVT. FINANCE DEPARTMENT, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM, PIN 695001 ``` `BY ADV GOVERNMENT PLEADER (` SR.) SHRI A.J.VARGHESE ``` OOP(KAT) 232/2019 ``` ``` -:2:-103/ ``` ## **`RESPONDENT/S:`** ``` 1C.S.MOHANAKUMAR, S/O. LATE A. CHELLAPPAN, SENIOR FINANCE OFFICER (RTD),KUMAR BHAVAN, MATHEMPALA, PALUKAL P.O, KANYAKUMARI DISTRICT PIN 629 170 THIRUVANANTHAPURAM, KERALA PIN- 695023. 2V.P KUTTISANKARAN, S/O. RAMUNNI NAIR (LATE), SENIOR FINANCE OFFICER (RTD), KAROLI HOUSE, MANKAVE P.O, KOZHIKODE PIN 673007 3V. SAJEENDRAN, S/O. LATE GOVINDAN, SENIOR FINANCE OFFICER (RTD), ROSHINI SADAN, CHALA EAST P.O, KANNUR, PIN 670621. BY ADV RAJESH P.NAIR ``` ``` THIS OP KERALA ADMINISTRATIVE TRIBUNAL HAVING BEEN ``` ``` FINALLY HEARD ON 7.11.2023, THE COURT ON 22/12/2023 DELIVERED THE FOLLOWING: ``` ``` OOP(KAT) 232/2019 ``` **==> picture [68 x 12] intentionally omitted <==** ## **`J U D G M E N T`** ## `A. Muhamed Mustaque, J.` ``` The short point that arises for consideration is whether the respondents who were the applicants before the Kerala Administrative Tribunal, are entitled to arrears of pay in the cadre of Finance Officer Grade-I, from the date on which their immediate juniors were promoted. The Tribunal answered in favour ``` ``` of the applicants. The State challenges this order of the Tribunal in this original petition. The Government by an order dated 1/12/2015, after many litigations, found that the applicants were entitled for promotion in the cadre of Finance Officer Grade-I, in respect of first applicant on 20/10/2004 and in respect of other applicants with effect from 14/1/2003 without back arrears but reckoning the period notionally for pensionary benefits. ``` ``` 2. Aggrieved by the above order, the applicants approached ``` ``` the Tribunal. The Tribunal noting that there is no change of ``` ``` OOP(KAT) 232/2019 ``` **==> picture [68 x 12] intentionally omitted <==** ``` duty consequent upon the promotion and applicants having challenged the promotion given to their juniors immediately after they were promoted, and on finding that the applicants were illegally denied promotion, found that the applicants are entitled to the pay and allowances in the post to which they were promoted, from the date of regularisation. ``` ``` 3. The learned Government Pleader Shri A.J.Varghese, challenging this order argued in extenso, and placed reliance on the judgment of the Apex Court in Union of India and Others v. N.C.Murali and Others [(2017) 13 SCC 575]. It is appropriate to refer to paras 17 and 19 of the above judgment which reads thus: ``` ``` 17. In view of the law laid down in the abovementioned cases, it is clear that unless there is specific rule entitling the applicants to receive promotion from the date of occurrence of vacancy, the right of promotion does not crystallise on the date of occurrence of vacancy and the promotion is to be extended on the date when it is actually effected. ``` ``` 19. The present is a case where admittedly DPC was not held from 1984 till October 2001. Although various reasons have been given by the appellants for not holding DPC, it is not necessary for us for the purpose of this case to enter into such reasons to find out as to ``` ``` OOP(KAT) 232/2019 ``` ## `-:5:-` **`103/`** ``` whether there is any justification for not holding the DPC for the relevant years. Suffice it to say, the promotions having been effected after DPC was held and those who were entitled have been given promotions, the litigation initiated by the respondents before the Tribunal should have been closed. The directions of the Tribunal to give retrospective pro forma promotion and retrospective seniority w.e.f. the date of vacancy when they were eligible, ought not to have been issued. However, taking into consideration the fact that the said promotions were effected in 2001 and after the order of the Tribunal in 2003, the benefit of retrospective pro forma promotion was also extended by the Government in compliance with the order of the Tribunal, benefit of which order had been availed of by the respondents who were promoted and most of them having already been superannuated, at this distance of time, we are not inclined to interfere with the order of the Tribunal as affirmed by the High Court. ``` ``` 4. The learned Government Pleader then placed reliance on Rule 23(a) of Chapter III Part-I KSR. ``` ``` 5. The learned counsel for the respondents submits that duties and responsibilities are the same, and that arbitrary denial of promotion cannot result in denial of legitimate pay due to them. ``` ``` OOP(KAT) 232/2019 ``` **==> picture [68 x 12] intentionally omitted <==** ``` 6. It is appropriate to refer to Rule 23 of Chapter III, Part-I KSR which reads thus: ``` ``` 23. (a) Subject to any exceptions specifically made in these rules, an Officer shall begin to draw the pay and allowances attached to his tenure of a post with effect from the date he assumes the duties of that post, and shall cease to draw them as soon as he ceases to discharge those duties. If the charge is transferred afternoon, the transfer does not affect pay and allowances until the next day. ``` ``` [Exception.- An Officer deputed for a course of instruction or training which is ordered to be treated as duty, if promoted to a higher post in the regular line during such course of instruction or training, may draw the pay thereof, without joining it, the benefit of promotion being given from the date his junior assumes charge of the higher post.] ``` ``` (b) If, however, the substantive appointment of an officer is changed while he is officiating in an appointment, or if, while so officiating, an Officer is appointed for the first time, to some substantive office, then, provided that the tenure of his officiating appointment is not interrupted by his new substantive appointment, he may draw the pay thereof without joining it from the date on which he is appointed thereto, or from any later date on which the substantive office becomes vacant. ``` ``` (c) [In the case of notional promotions back arrears of pay and allowances are not admissible. ``` ``` OOP(KAT) 232/2019 ``` ## `-:7:-` **`103/`** ``` d) Promotions which do not involve change of duties shall have effect from the date of occurrence of vacancy, or the date of acquiring eligibility for promotions, whichever is later, but monetary benefit shall be admissible only for a maximum period of one year prior to the date of order of promotion ``` ``` 7. The Apex Court did not lay down any proposition that the promotion given retrospectively cannot be given financial benefit. It is appropriate to refer to para 18 of the judgment in M.C.Murali case (supra) which reads thus: ``` ``` 18. However, there may be cases when the promotions have to be retrospectively made with or without financial benefits. A well-known example of giving retrospective promotion is cases of sealed cover procedure when the recommendations are kept in sealed cover procedure awaiting the outcome of disciplinary proceedings. There may be other circumstances in which a person is entitled to be given the benefit of retrospective promotion including a case where statutory rules mandates effecting promotion by particular time or on occurrence of vacancy. ``` ``` On the other hand, Rule 23(d) KSR which came into force with effect from 1/3/2007 allows monetary benefits for the maximum period of one year prior to the date of order of promotion. That means, in a promotion which do not involve change of duties prior ``` ``` OOP(KAT) 232/2019 ``` **==> picture [68 x 12] intentionally omitted <==** ``` to 1/3/2007, the Government servant is entitled to claim arrears of pay from the date of regularisation. This is a case, admittedly where regularsiation was given from the date prior to 1/3/2007. It is to be noted that in Annexure-A12 Government Order, dated 6/5/1992, the duties of Finance Assistant and Finance Officer have been mentioned and, their duties, powers and responsibilities are one and the same. That be the case, there is no scope for interference with the order of the Tribunal. The original petition is, therefore, dismissed. ``` ``` Sd/- ``` ``` A.MUHAMED MUSTAQUE , JUDGE ``` ``` Sd/- ``` ``` SHOBA ANNAMMA EAPEN, JUDGE ``` ``` ms ``` ``` OOP(KAT) 232/2019 ``` ## `-:9:-` **`103/`** ## **`APPENDIX OF OP(KAT) 232/2019`** ``` PETITIONER EXHIBITS EXHIBIT P1TRUE COPY OF THE O.A NO. 1423/2017 ALONG WITH ANNEXURES Exhibit P1(A1)TRUE COPY OF THE JUDGMENT DATED 02.08.2004 OF THE HON'BLE HIGH COURT IN OP.NO.10391/99. Exhibit P1(A2)TRUE COPY OF THE NOTIFICATION NO.78888/ESTT.B/2006/FIN DATED 24.02.2006 ISSUED BY FINANCE DEPARTMENT. Exhibit P1(A3)TRUE COPY OF JUDGMENT DATED 26.06.2006 OF HON'BLE HIGH COURT IN WP(C) 21608/2005. Exhibit P1(A4)TRUE COPY OF JUDGMENT DATED 17.09.2010 OF THE HON'BLE HIGH COURT IN WP(C) 28837/2010(D). Exhibit P1(A5)TRUE COPY OF G.O(RT)NO.8776/2010/FIN DATED 04.12.2010. Exhibit P1(A6)TRUE COPY OF G.O(RT)NO.10422/2015/FIN DATED 01.12.2015. Exhibit P1(A7)TRUE COPY OF ORDER IN TA 2798/2012 DATED 20.10.2016 OF KERALA ADMINISTRATIVE TRIBUNAL. Exhibit P1(A8)TRUE COPY OF JUDGMENT IN M.K.SUCHEENDRAN VS. STATE OF KERALA (2005(3)KLT 499). Exhibit P1(A9)TRUE COPY OF JUDGMENT IN THOMAS PAUL VS.STATE OF KERALA IN WP(C) NO.32386/2008. Exhibit P1(A10)TRUE COPY OF JUDGMENT IN STATE OF KERALA VS.E.K.BHASKARAN PILLAI (2007 IN SC 417 (17.04.2007). Exhibit P1(A11)TRUE COPY OF G.O(RT)NO.1460/2017/FIN DATED 22.02.2017. Exhibit P1(A12)TRUE COPY OF G.O(P)NO.388/92/FIN DATED 06.05.1992. EXHIBIT P2TRUE COPY OF THE REPLY STATEMENT FILED BY THE 1ST PETITIONER HEREIN IN THE O.A EXHIBIT P3TRUE COPY OF THE MA 738/2018 ALONG WITH ANNEXURES. ``` ``` OOP(KAT) 232/2019 ``` ## `-:10:-` **`103/`** ``` Exhibit P3(A13) ``` ``` TRUE COPY OF GOVERNMENT FILE NO.78888/ESTT.B2/2004/FIN OBTAINED UNDER RTI ACT. ``` ``` Exhibit P3(A14)TRUE COPY OF G.O(MS)NO.214/2006/FIN DATED 18.05.2006. Exhibit P3(A15)TRUE COPY OF G.O(RT)NO.5024/2007/FIN DATED 26.07.2017 ASSIGNING SENIORITY TO THE APPLICANTS. ``` ``` Exhibit P3(A16)TRUE COPY OF G.O(RT)NO.263/2003/FIN DATED 13.01.2003. Exhibit P3(A17)TRUE COPY OF G.O(RT)NO.6468/2006/FIN DATED 19.09.2006. Exhibit P3(A18)TRUE COPY OF G.O(RT)NO.6787/2004/FIN DATED 08.10.2004. Exhibit P3(A19)TRUE COPY OF G.O(RT)NO.272/2005/FIN DATED 10.01.2005. Exhibit P3(A20)TRUE COPY OF G.O(RT)NO.3071/2005/FIN DATED 12.04.2005. Exhibit P3(A21)TRUE COPY OF G.O(RT)NO.4494/2005/FIN DATED 10.06.2005. Exhibit P3(A22)TRUE COPY OF G.O(RT)NO.8512/2012/FIN DATED 03.10.2012. EXHIBIT P4TRUE COPY OF THE ADDITIONAL REPLY STATEMENT FILED BY THE RESPONDENT EXHIBIT P5TRUE COPY OF THE REJOINDER ON THE ADDITIONAL REPLY STATEMENT EXHIBIT P6TRUE COPY OF THE ORDER DATED 08-02-2019 ```