Service Law – Allowances – Special (Duty) Allowances – Claim of – On facts, by the Government Order dated 31.03.1987, benefit of Special (Duty) Allowances extended to CRPF personnels posted and serving, and had their headquarters in North Eastern Region – Respondents-pharmacists in CRPF posted in North Eastern Region but their Headquarters were in Gwalior, sought Special (Duty) Allowances for the period during which they were posted in the North Eastern Region – However, case of Director General, CRPF that respondents entitled to Special (Duty) Allowances only with effect from 03.08.2005 when by the Office Memorandum, the Government allowed the claim of CRPF personnel that benefits would be extended to all whether their headquarters are in North Eastern Region or not – Courts below granted Special (Duty) Allowances to the respondents for the period they actually worked in the North Eastern Region – On appeal, held: When the purpose is to encourage and retain the personnel in North Eastern Region, denial of benefit of Special (Duty) Allowance to those who although posted and serving in North Eastern Region but have their Headquarter outside the North East Region does not have any rational nexus with object sought to be achieved – Perusal of the Order dated 03.08.2005 does not indicate that the said benefit was intended only after 03.08.2005 – Order uses the words ‘it is clarified that allowance would be admissible to the personnels who are actually working in the North East Region’ – Order was clarificatory in nature – To differentiate the employees in two categories, whose Headquarters are within North Eastern Region and whose Headquarters are outside the North Eastern Region, clearly indicate that classification is not founded on any intelligible differentia – Classification as made in the GO dated 31.03.1987 did not pass the twin test – Government having itself realised the error, corrected the same by GO dated 03.08.2005 – Thus, it was unconstitutional to deny the said benefit on the premise that Government corrected its error only on 03.08.2005, hence, with effect from 03.08.2005 only the benefit should be given – Order passed by the courts below upheld.
Dismissing the appeal, the Court
HELD: 1.1 The main Office Memorandum by which Special (Duty) Allowance was decided to be granted is dated 14.12.1983. A perusal of the said Memorandum clearly indicates that genesis of grant of Special (Duty) Allowance was posting of person in North Eastern Region. The said benefits were extended to attract and retain the services of the competent officers serving in North Eastern Region. The said benefit was extended to CRPF personnels also. The benefit as extended by Office Memorandum dated 14.12.1983 was revised from time to time and by 29.08.1986 revised orders were issued with effect from 01.10.1986, benefit of which orders was claimed in the claim petition filed by the respondents before the Tribunal. A perusal of the letter dated 15.04.2005 indicates that only reason for denying the Special (Duty) Allowance to the respondents was that their Headquarters were in Shivpuri/Gwalior i.e. out of North Eastern Region although there was no denial that their posting was in North Eastern Region. [Paras 9, 11-13][88-F; 89-C-F]
1.2 The purpose and object of granting the benefit was to reward the persons who are posted in the North Eastern Region. The tribunal has directed for granting the benefit to the respondents for the period they have actually worked in the North Eastern Region. When the basis for granting Special (Duty) Allowance was posting in North Eastern Region, it cannot be seen how the respondents who were posted in the North Eastern Region would have been denied the Special (Duty) Allowance on the ground that their Headquarters are in Shivpuri/Gwalior. The benefit is attached to their posting in the North Eastern Region and denial on the ground that their Headquarters are in Shivpuri/Gwalior has no nexus with their claim. [Para 14][89-F-H; 90-A]
1.3 A perusal of the Order dated 03.08.2005 does not indicate that the said benefit was intended only after 03.08.2005. Paragraph 2 of the order uses the words “it is clarified that allowance would be admissible to the personnels who are actually working in the North East Region”. The Order issued by the Government was clarificatory in nature. [Para 16][90-B-C]
1.4 By Government Order dated 31.03.1987 Special (Duty) Allowance was extended to CRPF personnel posted and serving in North East Region who had their Headquarters also in that region. Obvious inference was that those personnel posted and serving in North East Region whose Headquarters were not in that region were not entitled to the benefit. [Para 17][90-C-D]
1.5 Article 14 does not prohibit reasonable classification but for passing test of permissible classification there are two conditions which have been time and again laid down and reiterated. There is no intelligible differentia between two classes of employees posted and serving in North East Region. The policy of law as is clear from the original Government Order dated 14.12.1983, it is clear that Government came with the scheme of Special (Duty) Allowance with the object and purpose of encouraging, attracting and retaining the services of the officers in the North Eastern Region. To differentiate the employees in two categories-whose Headquarters are within North Eastern Region and whose Headquarters are outside the Region, clearly indicate that classification is not founded on any intelligible differentia. Further the differentia has no rational relation to the object sought to be achieved. When the purpose is to encourage and retain the personnel in North Eastern Region, to deny the benefit to those who although posted and serving in North Eastern Region have their Headquarter outside the North East Region does not have any rational nexus with object sought to be achieved. [Paras 18, 20 and 21][90-+F; 91-E-H; 92-A] Budhan Choudhary v. State of Bihar AIR 1955 SC 191 : 1955 SCR 1045; Harakchand Ratanchand Banthia and others v. Union of India and others AIR 1970 SC 1453 : [1970] 1 SCR 479 – referred to.
1.6 The classification as made in the Government Order dated 31.03.1987 does not pass the twin test. The Government having itself realised the error has corrected the same by Government Order dated 03.08.2005 permitted the Special (Duty) Allowance to all who are posted and serving in North East Region irrespective of the facts as whether their Headquarters are within or outside the North Eastern Region. [Para 22][92-A-B]
1.7 When the earlier classification as envisaged by GO dated 31.03.1987 itself not been valid to deny the benefit to those who were entitled to the Special (Duty) Allowance on the ground that Government came with the clarification only on 03.08.2005 shall neither be equitable nor shall stand the test of equality before the law. When the denial did not pass the twin test of valid classification and was unconstitutional to deny the said benefit on the premise that Government corrected its error only on 03.08.2005, hence, with effect from 03.08.2005 only the benefit should be given does not appeal to reason. Thus, there is no ground to interfere with the judgment of the High Court. [Paras 23-25][92-C-E]
As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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