Supreme Court Rules on Pay Fixation in Inter-University Transfers in Kerala
The case of Smt. Sasikala Devi P vs. The State of Kerala & Anr. revolves around the dispute over pay fixation for employees transferred between universities in Kerala. The Supreme Court upheld the Kerala High Court’s decision, ruling that transferred employees are not entitled to additional pay benefits upon promotion in the transferee university beyond what they already received in their parent institution. The Court also directed that no recoveries should be made from retired employees.
Background of the Case
The appellant, Smt. Sasikala Devi P, was appointed as an Assistant Grade-II in the University of Calicut on May 4, 1988. Over the years, she was promoted to Assistant Grade-I, Senior Grade Assistant, and Selection Grade Assistant before transferring to Kerala University on November 4, 1999. Under inter-university transfer policies, transferred employees were placed at the bottom of the seniority list in their new institution but retained their pay scale.
Following her transfer, the appellant was promoted again within Kerala University, and her pay was refixed. However, an audit objection was raised, claiming that the pay fixation was incorrect. As a result, the university withdrew the pay benefits. The appellant challenged this action before the Kerala High Court.
Legal Issues Before the Court
- Whether employees transferred between universities were entitled to additional pay benefits upon promotion in the transferee university.
- Whether the withdrawal of pay benefits based on an audit objection was legally justified.
- Whether recoveries could be made from retired employees who had received higher salaries due to incorrect pay fixation.
Arguments by the Petitioner (Appellant – Smt. Sasikala Devi P)
The appellant’s counsel argued:
- “The appellant was entitled to the same benefits as other employees on promotion, and denying her those benefits amounted to discrimination.”
- “The inter-university transfer policy should not result in financial disadvantages for the employee.”
- “The audit objection was incorrect, and the pay fixation should have remained unchanged.”
Arguments by the Respondent (State of Kerala)
The State of Kerala defended the withdrawal of pay benefits, arguing:
- “Employees transferred under the inter-university transfer policy were placed at the bottom of the seniority list in their new university.”
- “While their previous pay was protected, they were not entitled to additional benefits upon promotion.”
- “The appellant had already received promotions in her previous university, and allowing additional pay benefits would amount to double advantage.”
Supreme Court’s Analysis and Judgment
The Supreme Court upheld the Kerala High Court’s decision, making the following key observations:
- “Employees transferred between universities are entitled to protection of their previous pay but cannot claim additional benefits on promotion in the transferee university.”
- “Granting such benefits would result in double advantages, as they had already received promotions in their previous institution.”
- “No recoveries should be made from retired employees who had received higher salaries due to incorrect pay fixation.”
The Court ruled:
“The appeal is disposed of accordingly. No recoveries shall be made from retired employees. However, their pensions may be re-fixed as per the correct pay structure.”
Key Takeaways from the Judgment
- Inter-university transfer policies protect previous pay but do not guarantee additional benefits upon promotion.
- Employees placed at the bottom of the seniority list in the transferee university cannot claim seniority-based promotions immediately.
- Incorrect pay fixation should be corrected, but recoveries from retired employees should be avoided.
Impact of the Judgment
This ruling clarifies the rights of employees who transfer between universities under Kerala’s inter-university transfer policy. It establishes that such employees should not expect additional financial benefits upon promotion beyond what they received in their original institution. The decision also reinforces the principle that recoveries should not be made from retired employees if the incorrect pay fixation was not their fault.
Petitioner Name: Smt. Sasikala Devi P.Respondent Name: The State of Kerala & Anr..Judgment By: Justice Abhay S. Oka, Justice Rajesh Bindal.Place Of Incident: Kerala.Judgment Date: 28-04-2023.
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