Four years’ regular service in Grade Pay ₹4,800 entitles employees to NFG Grade Pay ₹5,400.

The applicant, an ex-Junior Works Manager of Ordnance Factory, Kanpur, was placed in Grade Pay of ₹4,800 with effect from 4 June 2011 and superannuated on 30 September 2024.

Under the Ministry of Finance’s resolution dated 29 August 2008, Group B officers completing four years of regular service in Grade Pay of ₹4,800 in Pay Band-II were eligible for Non-Functional Grade (NFG) in Grade Pay of ₹5,400.

The applicant completed four years in the relevant grade on 4 June 2015, but was granted Grade Pay of ₹5,400 only from 9 June 2023.

His representations seeking retrospective grant of NFG from 4 June 2015 were not acted upon, leading him to file the Original Application under Section 19 of the Administrative Tribunals Act, 1985.

Whether the applicant was entitled to NFG in Pay Band-II with Grade Pay of ₹5,400 upon completion of four years of regular service in Grade Pay of ₹4,800, with effect from 4 June 2015 rather than 9 June 2023?

Whether the benefit declared in M. Subramaniam v. Union of India and followed in Pradeep Kumar & Ors. v. Union of India & Ors. was required to be extended to the applicant as a uniform, in-rem benefit?

The Tribunal applied Section 19 of the Administrative Tribunals Act, 1985, governing applications before the Tribunal.

It relied on the Ministry of Finance, Department of Expenditure resolution dated 29 August 2008, under which eligible Group B officers in Pay Band-II with Grade Pay of ₹4,800 become entitled to Grade Pay of ₹5,400 on completion of four years of regular service in that grade.

The Tribunal followed M. Subramaniam v. Union of India, W.P. No. 13225/2010, decided by the Madras High Court on 6 September 2010, which directed retrospective grant of Grade Pay of ₹5,400 from the date of completion of four years; the decision was affirmed by dismissal of the Union’s Special Leave Petition on 10 October 2017 and review petition on 23 August 2018.

It further relied on Pradeep Kumar & Ors. v. Union of India & Ors., OA No. 1005/2019, decided on 9 January 2020, and held that judgments concerning uniform pay-fixation policies operate in rem rather than merely in personam.

The Tribunal found that the applicant had completed four years of regular service in Grade Pay of ₹4,800 on 4 June 2015, thereby satisfying the condition for NFG under the 29 August 2008 policy.

Since the legal position established in M. Subramaniam had been affirmed by the Supreme Court and repeatedly applied by Tribunal Benches, the respondents could not restrict its benefit only to the original litigants.

The Tribunal emphasized that pay-fixation rules are governed by uniform governmental policies and that decisions interpreting such policies must be implemented in rem, including for similarly situated serving or retired employees.

Accordingly, the applicant was entitled to have his case considered and the benefit extended on the same basis as other similarly situated employees.

The exercise was ordered to be completed within four months from receipt of the certified copy of the order.

The Original Application and all pending miscellaneous applications were disposed of, with no order as to costs.