Judgments granting pay scale upgradation are in rem and apply to all similarly situated employees.

The Applicant joined as an Inspector in Central Excise Customs in 1982, was promoted to Superintendent in 2002, and retired as Assistant Commissioner in 2018.

Following the 5th Central Pay Commission (CPC), the pay scales for Inspectors and Superintendents were upgraded to Rs. 6500–10500 and Rs. 7500–12000, respectively.

The Respondents made these revised scales effective from 21.04.2004 instead of 01.01.1996 (the implementation date of the 5th CPC).

The Applicant sought retrospective notional fixation from 01.01.1996 and actual arrears.

The Respondents opposed the application on grounds of limitation under Section 21 of the Administrative Tribunals Act, 1985, and labeled the Applicant a "fence-sitter".

1. Whether the Applicant is entitled to the notional fixation of the revised pay scale with effect from 01.01.1996 and consequential monetary benefits.

2. Whether the claim is barred by limitation and laches or if the Applicant is disentitled to relief as a "fence-sitter".

3. Whether previous judicial pronouncements on this subject operate in rem or are restricted in personam to the original litigants.

Article 14 of the Constitution of India, emphasizing the principle of equality and non-discrimination among similarly situated employees.

Section 21 of the Administrative Tribunals Act, 1985, regarding limitation.

The precedent in State of Karnataka v. C. Lalitha, which mandates that service jurisprudence requires equal treatment for all similarly situated persons once a legal principle is settled.

K.L. Shephard v. Union of India, asserting that a "model employer" should not penalize employees for not litigating earlier.

The Tribunal reasoned that since the Central Board of Direct Taxes (CBDT), acting under the same Department of Revenue, had already implemented the 01.01.1996 effective date based on a Special Anomaly Committee recommendation, the same must apply to the Central Board of Indirect Taxes and Customs (CBIC).

Regarding limitation, the Tribunal held that pay fixation constitutes a recurring cause of action.

The Tribunal noted that once multiple Benches and High Courts (confirmed by the Supreme Court) settled the issue, the Respondents were expected to extend the benefit to all similarly situated employees automatically rather than treating the judgments as in personam.

The Tribunal found the Respondents' refusal to apply these "judgments in rem" to the Applicant to be arbitrary and unsustainable.

The Tribunal held that the Applicant is entitled to the revised pay scales of Rs. 6500–10500 and Rs. 7500–12000. The Respondents were directed to refix the Applicant's pay on a notional basis from 01.01.1996 and provide actual monetary benefits and arrears from 21.04.2004, including consequential pensionary benefits. The exercise must be completed within two months.