Union of India & Ors. v. A. Rayer & Ors.
Background
The Union of India appealed against concurrent findings of the Central Administrative Tribunal and the Calcutta High Court (Circuit Bench at Port Blair) directing that Police Constables in the Union Territory of Andaman & Nicobar Islands be given the same pay scale as Delhi Police Constables, based on a recommendation of a government-constituted Anomaly Committee. The Union argued that a classification between matriculate and non-matriculate employees was constitutionally permissible and that the Anomaly Committee's recommendation was not binding on the Government. The High Court had earlier also imposed an 8% per annum "default cost" as a condition for staying its judgment pending appeal.
Decision Breakdown
The Supreme Court held that the real question was not about the matriculate/non-matriculate classification but whether to disturb concurrent findings of the Tribunal and the High Court under its discretionary jurisdiction (Article 136); finding no justifiable ground to interfere, it dismissed the appeal and upheld pay parity for the constables. Exercising its equitable discretion, the Court vacated the High Court's earlier order imposing interest-by-way-of-cost from 01.01.1996, but made this conditional: if arrears were not paid to the affected employees within six months, the cost order would automatically stand revived, with no further extensions to be granted.
Lesson Learnt
The Supreme Court is generally reluctant to re-open concurrent factual findings of a Tribunal and a High Court under its discretionary Article 136 jurisdiction, and even when it grants relief from a cost penalty, it can condition that relief on prompt compliance with the underlying payment obligation.