Featured image for Supreme Court Judgment dated 24-04-2018 in case of petitioner name State of West Bengal vs West Bengal Dairymen’s Associa
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West Bengal Dairy Employees Get Career Advancement Benefits: Supreme Court Resolves Pay Dispute

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The Supreme Court of India, in the case of State of West Bengal v. West Bengal Dairymen’s Association & Others, addressed a long-standing dispute over the fixation of pay for employees in the dairy sector. The case involved employees seeking benefits under the Career Advancement Scheme (CAS) and the Modified Career Advancement Scheme (MCAS), which had been denied after the merger of two directorates.

The judgment, delivered by a bench comprising Kurian Joseph, Mohan M. Shantanagoudar, and Navin Sinha, provided a final resolution by allowing the employees to opt for CAS/MCAS benefits while adjusting any amounts already received under the merger scheme.

Background of the Case

The dispute arose when the State of West Bengal merged two directorates, affecting the pay structure of the employees belonging to the respondent association. The state argued that the merger had granted the employees higher pay scales, making them ineligible for CAS and MCAS benefits.

The employees, represented by the West Bengal Dairymen’s Association, contended that the merger had placed them at a disadvantage and that they would have been in a better position under the CAS/MCAS schemes.

Key Legal Issues

  • Whether the employees were entitled to CAS/MCAS benefits despite receiving higher pay scales under the merger scheme.
  • Whether the state government had the authority to deny CAS/MCAS benefits post-merger.
  • Whether the settlement of monetary claims should include adjustments for benefits already received.

Arguments Presented

Petitioners’ Arguments (State of West Bengal)

The state government contended:

  • The employees had already received financial benefits under the merger scheme, making them ineligible for CAS/MCAS.
  • The merger had been implemented to streamline administrative efficiency and provide fair pay scales.
  • Granting CAS/MCAS benefits in addition to merger benefits would lead to an undue financial burden on the state.

Respondents’ Arguments (West Bengal Dairymen’s Association)

The employees argued:

  • The merger had disadvantaged them as they would have been in a better financial position under CAS/MCAS.
  • They should be given the option to choose between CAS/MCAS benefits and merger benefits.
  • They had been denied benefits granted to other government employees under similar schemes.

Supreme Court’s Observations

The Supreme Court noted the submissions made by the employees’ counsel and the state’s willingness to settle the dispute without further contest.

Option to Choose CAS/MCAS Benefits

The Court ruled:

“In order to give a quietus, the State is prepared to grant the benefit of CAS/MCAS benefits to the employees, in case they forgo the benefits received under the scheme of merger.”

Adjustment of Previously Granted Benefits

The Court further clarified:

“The amounts already paid to the employees under the Scheme of Merger shall be adjusted while settling the monetary claims under CAS/MCAS.”

Timeframe for Implementation

The Court directed:

“Needful shall be done by the appellant-State within two months from the date of receipt of copy of this judgment.”

Final Judgment

The Supreme Court resolved the dispute as follows:

  • The employees of the respondent association shall be granted CAS/MCAS benefits, similar to other government employees under the same schemes.
  • Employees who opt for CAS/MCAS benefits must forgo benefits received under the merger scheme.
  • The state shall adjust amounts already paid under the merger scheme while settling monetary claims under CAS/MCAS.
  • The state government must complete the necessary formalities within two months.

Implications of the Judgment

  • The ruling ensures fair treatment of employees affected by administrative mergers.
  • It upholds the principle of allowing employees to choose the most beneficial pay scheme.
  • The judgment prevents financial disadvantage to employees while balancing state financial concerns.
  • The ruling may serve as a precedent for similar disputes in other states.
  • It highlights the importance of structured compensation policies in government employment.

This landmark decision resolves a long-standing employment dispute and ensures that affected employees receive fair compensation while maintaining financial accountability for the state.


Petitioner Name: State of West Bengal.
Respondent Name: West Bengal Dairymen’s Association and Others.
Judgment By: Justice Kurian Joseph, Justice Mohan M. Shantanagoudar, Justice Navin Sinha.
Place Of Incident: West Bengal.
Judgment Date: 24-04-2018.

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