Patna High Court

Source of appointment cannot be a basis for denying Assured Career Progression benefits to compassionate appointees.

Shahid Akhtar vs The State Of Bihar and Ors

Patna High CourtJUDGMENT: March 13, 20263 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The petitioner was appointed on compassionate grounds as a Typist in the Saran Treasury on July 10, 1990, following the death of his father, an employee of the Treasury Cadre

Source reference: para. 3

Following a merger of posts in 1993, the petitioner was designated as a Clerk, and subsequently, the nomenclature was changed to Treasury Accountant

Source reference: para. 4, 12

The petitioner received his 1st Assured Career Progression (ACP) benefit in 2002

Source reference: para. 4

Seeking further financial upgradation under the Finance Department’s Resolution No. 163 dated January 8, 2016, the petitioner filed a representation

Source reference: para. 5

This representation was rejected by the Grievance Redressal Committee via Memo No. 786 dated September 8, 2016

Source reference: para. 2

The rejection was based on the premise that the pay scale of Rs. 5000-8000 was reserved for clerks who opted for the Treasury Cadre in 1979, and that compassionate appointees were not "Accounting Clerks" entitled to such upgradation

Source reference: para. 8, 13, 21
02

Issues

1. Whether the State can legally distinguish between Treasury Clerks appointed directly and those appointed on compassionate grounds for the purpose of granting pay scales and ACP benefits

Source reference: para. 17, 18

2. Whether the petitioner could be denied the pay scale of Rs. 5000-8000 on the ground that he did not opt for the Treasury Cadre in 1979, despite being appointed in 1990

Source reference: para. 13, 21
03

Law Applied

The court relied on the principles established in Dhananjay Sharma v. State of Bihar (2001), which mandated the implementation of fitment committee recommendations regarding the Rs. 5000-8000 pay scale

Source reference: para. 4, 6

It further applied the ratio from Prabhat Shankar Poddar v. State of Bihar (CWJC No. 817 of 2007), which held that the source of appointment (compassionate ground) or the date of appointment cannot be used to reduce pay scales or deny benefits afforded to the cadre

Source reference: para. 14

The court also invoked the Division Bench ruling in State of Bihar v. Anit Kumar Singh (LPA No. 767 of 2017), asserting that once an individual is appointed to a department, any discrimination in granting ACP benefits based on the mode of entry is violative of the Assured Career Progression Scheme Rules, 2003

Source reference: para. 19, 20
04

Reasoning

The court found the State’s distinction between "Treasury Clerks" (direct recruits/optants) and "Clerks in Treasury" (compassionate appointees) to be "specious" and lacking rationale

Source reference: para. 20

The court observed that the petitioner, appointed in 1990, could not have physically opted for a cadre in 1979; thus, using the 1979 option as a criterion for him was illogical

Source reference: para. 21

The court reasoned that under the Bihar State Litigation Policy, 2011, and settled precedents, the State is barred from creating artificial sub-classifications within a single cadre to deny benevolent financial schemes

Source reference: para. 18, 22

The court emphasized that the issue had attained finality up to the Supreme Court in similar matters, and the State's continued rejection of such claims was "in the teeth of" prior judicial directions

Source reference: para. 18, 20

Consequently, the source of appointment loses significance once an employee is integrated into the cadre for the purpose of applying beneficial service rules

Source reference: para. 20
05

Holding

The court allowed the writ application and quashed Memo No. 7186 dated September 8, 2016, which had rejected the petitioner’s representation

The court held that the petitioner is entitled to ACP benefits in accordance with Government Resolution No. 163 dated January 8, 2016

Source reference: para. 24

The respondents were directed to calculate the arrears and consequential benefits and pay the same to the petitioner, along with a detailed calculation sheet, within a period of three months

Source reference: para. 25
Patna High Court

Original Court PDF

Shahid AkhtarvsThe State Of Bihar and Ors

Patna High Court · March 13, 2026

Click to open original judgment

Original judgment, available to read, download and summarize on LawLens.in

Click to open original judgment