Non-Conduct of Departmental Examinations Cannot Bar Grant of Higher Pay Scale Benefit Upon Eligibility

The petitioners were appointed as Field Assistants (Soil Conservation), Class-III, in 2012 by the Gujarat State Land Development Corporation (Respondent No. 1).

After completing five years on a fixed pay, they were placed in the regular pay scale of Rs. 5,200–20,200 with Grade Pay of Rs. 2,400.

Although the petitioners cleared the CCC and pre-service training examinations, they were denied the first higher grade scale (Rs. 5,200–20,200, GP 2800) because they had not passed the departmental promotional examination.

Respondent No. 1 had only conducted the departmental examination once (in 2021) since the petitioners' appointment in 2012, and the petitioners had failed that specific attempt.

1. Whether the action of the respondent authorities in denying the first higher grade scale on the ground of non-passing of a departmental examination is legal when the Corporation failed to conduct such examinations regularly.

2. Whether the petitioners are entitled to the benefit of the first higher pay scale upon completion of 10 years of service as per the Government Resolution dated 19.10.2022.

The court applied the principles established in the precedent Ganpatbhai Adlabhai Rathva v. State of Gujarat (SCA No. 15597 of 2019), which held that employees cannot be penalized for the employer's failure to conduct departmental examinations.

The court applied the Government Resolution dated 19.10.2022, which stipulates that employees are entitled to the first higher pay scale upon completion of 10 years of service.

The court reasoned that the denial of a higher pay scale is "misconceived" if the employer fails to provide the opportunity to clear the required examinations.

Referring to the Ganpatbhai case, the court noted that inability to hold examinations is an admission of administrative lapse.

Since Respondent No. 1 only held one examination in 2021 across a span of 13 years, and failed to frame rules or conduct subsequent exams, the petitioners should not be deprived of financial benefits.

The court further observed that under the new Government Resolution dated 19.10.2022, the petitioners had completed the requisite 10 years of service and were thus eligible for the pay upgrade regardless of the prior non-conduction of exams.

It held that the petitioners are eligible for the first higher pay scale upon completion of 10 years of service.

The respondents were directed to grant the benefit of the first higher pay scale to each petitioner as per the Government Resolution dated 19.10.2022 within three months from the date of the judgment. Rule was made absolute.