Implementation of revised pay scales necessitates payment of consequential arrears from the effective date.

The Applicant association represents staff from seven schools aided by the Defence Research and Development Organisation (DRDO).

Since 1992, these schools were sanctioned uniform service conditions and pay parity with Kendriya Vidyalaya (KV) employees.

While two DRDO schools received arrears under the 7th Central Pay Commission (CPC) in 2017, seven other schools were denied the same.

In 2020, the Respondents extended the 7th CPC pay scales to the applicant schools but restricted the benefit prospectively, refusing to pay arrears for the period between 01.01.2016 and 28.02.2020.

The Respondents argued that these schools are independently managed by registered societies, not the Government, and that the O.A. was barred by limitation under Section 21 of the Administrative Tribunals Act, 1985, as it challenged a 2020 order in 2023.

Whether the Respondents can lawfully deny arrears for the period of 01.01.2016 to 28.02.2020 after having extended the 7th CPC pay scales to the employees.

Whether the denial of arrears to the applicant schools while granting them to other similarly situated DRDO schools constitutes hostile discrimination under Article 14.

Whether the Original Application is barred by the limitation period prescribed under Section 21 of the Administrative Tribunals Act, 1985.

The Tribunal applied the principle of parity and non-discrimination under Article 14 of the Constitution of India, which prohibits arbitrary state action and requires equal treatment for similarly situated persons.

It further relied on the legal doctrine that once a pay revision is implemented, it carries all consequential benefits (arrears) unless a legally sustainable prospective restriction exists.

Regarding limitation, the Tribunal applied the principle of "continuing cause of action," holding that the non-payment of legitimate dues constitutes a recurring wrong.

The Tribunal observed that the Respondents admitted to extending the 7th CPC pay scales to the applicant schools in 2020.

It reasoned that pay revision and its consequential financial arrears are inextricably linked; therefore, arrears cannot be withheld without a clear statutory or policy-based justification.

The Tribunal rejected the Respondents' defense regarding the schools' management by societies, noting that once parity with KV scales was established and recognized for pay fixation, it could not be selectively denied for arrears.

The Tribunal found the denial "arbitrary" and "hostile," as two other DRDO schools had already received the arrears, creating a lack of intelligible differentia between the institutions.

On the issue of limitation, the Tribunal held that since the claim pertains to the non-payment of salary/arrears, it represents a continuing cause of action, rendering the delay in filing the O.A. secondary to the substantive right to receive acknowledged dues.

The Respondents were directed to calculate and release the arrears for the period 01.01.2016 to 28.02.2020 within twelve weeks of receiving the order.

Furthermore, the Tribunal ordered that if the payment is not made within the stipulated period, the amount shall carry an interest rate of 6% per annum from the due date until the date of actual payment.