"As we found illegality in not following the principles of natural justice, before reducing scales of pay, it is necessary that the matter is to be considered afresh by the government after giving opportunity to all concerned, especially for reducing the scale of pay/grade pay," the Division Bench comprising Justices N Paul Vasanthakumar and P Devadass, said.
The judges stated this while disposing a batch of petitions and appeals filed by several associations of state government employees and certain individuals.
The court noted Centre had appointed a retired Supreme Court Judge to head the Fifth and Sixth Central Pay Commissions. It had appointed a retired Judge of Madras High Court to consider the pay anomaly among judicial officers and pensioners at all India level, "it is just and appropriate to appoint a retired judge to head PGRC".
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The contention of the employees affected by reduction of pay scales is they were not heard by the Committee and hence the principles of natural justice is violated.
It directed government to constitute the committee in three weeks from date of receipt of the order and fix time limit to submit report and not to implement the G.O., which will affect certain categories till a fresh decision is taken.
If any categories of government servants of any department who had been offered higher payscale as of today, it was open to Government to implement it in so far as pay scales which are beneficial to such employees, the bench said.