Government Employees’ Pay Scale Dispute: Supreme Court Ruling in Maruti Tukaram Bagawe v. State of Maharashtra

The case of Shri Maruti Tukaram Bagawe & Ors. v. The State of Maharashtra & Anr. concerns a dispute over the pay scale and promotional benefits granted to government employees under different resolutions of the Maharashtra Government. The Supreme Court was called to decide whether the benefits granted under a prior resolution could be withdrawn and whether the government had the right to recover excess payments made to employees.

The dispute arose after the Maharashtra Government issued a resolution on 26.10.2004, granting Junior Clerks in the Treasury Department the pay scale of Deputy Accountant after completing 12 years of continuous service. However, this resolution was later withdrawn by another resolution on 11.09.2008. The employees challenged the withdrawal, claiming their right to retain the benefits.

Arguments by the Petitioner

The petitioners, represented by senior counsel, contended that they were legally entitled to receive the higher pay scale of Deputy Accountant based on the 2004 resolution. They argued:

“The appellants were correctly granted the benefits of the pay scale of Deputy Accountant under the resolution dated 24.10.2004, which ought not to have been withdrawn by the subsequent government resolution.”

They further claimed that even if the 2004 resolution was withdrawn, they were still entitled to higher pay under a prior resolution dated 08.06.1995.

Arguments by the Respondent

The Maharashtra Government contended that the withdrawal of the 2004 resolution was justified to correct an anomaly in the pay structure. They argued:

“The benefits granted were withdrawn after realizing that Junior Clerks, who were below Senior Clerks in the hierarchy, were being paid higher salaries than Senior Clerks, which created an anomalous situation.”

The government also stated that employees had signed undertakings agreeing to refund the excess payments if the resolution was declared invalid.

Supreme Court’s Analysis

The Supreme Court examined whether the withdrawal of the 2004 resolution was valid and whether the recovery of excess payments was justified. The Court held:

“The Tribunal did not commit any error in upholding the government resolution dated 11.09.2008. The service conditions of employees are within the domain of the State Government, and it has the right to modify pay scales when necessary.”

However, the Court found merit in the argument that employees should not be required to refund payments received before 04.12.2014, when the Administrative Tribunal upheld the 2008 resolution.

Final Verdict

The Supreme Court partially allowed the appeal. It ruled that excess payments made after 04.12.2014 could be recovered, but employees were not required to return benefits received before that date. The ruling clarifies the government’s authority to revise pay structures while protecting employees from undue financial hardship.

Petitioner Name: Shri Maruti Tukaram Bagawe & Ors..
Respondent Name: The State of Maharashtra & Anr..
Judgment By: Justice Ashok Bhushan, Justice Mohan M. Shantanagoudar.
Place Of Incident: Maharashtra.
Judgment Date: 27-02-2020.

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