The State of Punjab v. B.K. Dhir
Background
The respondent, B.K. Dhir, retired from Punjab government service as Additional Director, Panchayats, in 1993. During his career he had officiated in higher posts (Joint Director and then Additional Director) under formal orders, but was paid only his substantive (lower) pay scale rather than the pay of the higher posts he was actually discharging duties in. His writ petition for the higher pay was dismissed by a single judge, but a Division Bench of the High Court allowed his intra-court appeal and directed payment of salary matching the posts he had officiated in.
Decision Breakdown
The Supreme Court noted that it had decided an identical factual/legal controversy the same day in State of Punjab v. Dharam Pal (C.A. No. 1549/2011), holding that an employee who performs the duties of a higher officiating post is entitled to that post's pay scale, and that a condition in the posting order (or even an undertaking) restricting him to his substantive pay does not, by itself, bar this entitlement. The State's argument that the respondent was ineligible under service rules to hold the post was rejected because it had not been raised before the High Court, and since the respondent had actually performed the higher duties without any genuine eligibility contest, there was no reason to interfere. The appeal was dismissed, affirming the High Court's order and the pay benefits awarded, with no order as to costs.
Lesson Learnt
An employee who is formally assigned to officiate in a higher post and actually performs its duties is generally entitled to that post's pay, even if the posting order purported to restrict him to his original pay scale, and an employer cannot raise a fresh eligibility objection for the first time only before the Supreme Court after having lost on other grounds below.