Group B officers are entitled to non-functional Grade Pay of ₹5400 after four years in Grade Pay ₹4800.

The applicant joined the Department of Posts as a Stenographer Gr. III in 1982 and was eventually promoted to Stenographer Gr. II (Group B)

She was granted the 3rd Financial Upgradation under the Modified Assured Career Progression (MACP) scheme effective November 28, 2017, placing her in Level 8 of the Pay Matrix with a Grade Pay (GP) of Rs. 4,800/-

Upon completing four years of regular service in GP Rs. 4,800/- on November 27, 2021, the applicant sought the non-functional Grade Pay of Rs. 5,400/- in accordance with the Sixth Central Pay Commission (CPC) Resolution dated August 29, 2008

The respondents rejected her representation on November 7, 2023, contending that GP Rs. 4,800/- is the apex level for the Stenographer cadre, the 7th CPC had dispensed with the concept of "Grade Pay," and the benefit was post-specific rather than applicable to all similarly paid employees

1. Whether a Group B employee of the Department of Posts is entitled to the grant of non-functional Grade Pay of Rs. 5,400/- in PB-2 after completing four years of regular service in the Grade Pay of Rs. 4,800/-

2. Whether the implementation of the 7th CPC or the "post-specific" nature of the cadre bars the grant of such non-functional upgradation

Ministry of Finance Resolution dated August 29, 2008, specifically paragraph x(e), which stipulates that Group B officers in the Departments of Posts and Revenue shall be granted a Grade Pay of Rs. 5,400/- on a non-functional basis after four years of regular service in GP Rs. 4,800/-

The legal principle that the government cannot create "a class within a class" without a rational basis

UOI Ors v. M. Subramaniam (Civil Appeal No. 8883 of 2011), which affirmed the entitlement of similarly situated employees to this upgradation

K.C. Sharma Ors v. Union of India regarding the obligation of the State to extend benefits to similarly placed employees to avoid discriminatory litigation

The Tribunal rejected the respondents' contention that the benefit was "post-specific," noting that the 2008 Resolution applied broadly to Group B officers of the Department of Posts without ambiguity

The court observed that the matter is no longer res integra, as various coordinate benches and the Supreme Court have consistently held that the non-functional upgrade to GP Rs. 5,400/- is a matter of entitlement upon completing the requisite four-year period in GP Rs. 4,800/-

The Tribunal clarified that the transition to the 7th CPC Pay Matrix did not extinguish rights accrued or principles established under the 6th CPC resolutions regarding non-functional upgrades

It held that denying the applicant the same benefit granted to others in identical circumstances (as seen in OA 296/2014 and OA 1595/2019) was arbitrary, discriminatory, and a violation of the principles of equality in public employment

It held that the applicant is entitled to the non-functional Grade Pay of Rs. 5,400/- effective from the date she completed four years of service in GP Rs. 4,800/-

The respondents were directed to grant the Grade Pay of Rs. 5,400/-, re-fix her pay and pension accordingly, and disburse all consequential financial benefits/arrears within 60 days of receiving the order