1993 PLP (C (PLC(CS))

SYED ALLY MADAD SHAH (CHAIRMAN): ‑‑The Finance Division, Government of Pakistan, issued following Office Memorandum NO.F.1(4)IMP.II/85, dated 26th June, 1985, on the subject "Indexation of pity of civilian employees of the Federal Government":‑ "The President has been pleased to direct that with effect from 1‑7‑1985, the pay of all civil servants and Government employees of Railways, Post Offices, T&T Department as well as civilians paid from Defence Estimates will be indexed in relation to the cost of living. Under this arrangement, the pay admissible to an employee at any time will be the pay due to him in the existing pay scale under the normal rules multiplied by the index applicable to him from time to time. For the fiscal year 1985‑86 the index will be as follows:‑ (a) Government servants drawing basic pay upto Rs.1,500 p.m. ‑‑ 1.135 (b) Government servants drawing basic pay above Rs.1,500 p.m. ‑‑ 1.100 Provided that pay of a Government servant falling in category (b) above will not be less than Rs.1,703. (2) In calculating pay, fraction of a rupee which is less than fifty paisas will be ignored and that of fifty paisas and more will count as one rupee'. (3) For the fiscal year 1985‑86, the allowance will not be indexed and will not be affected by the increase in pay due to indexation.

2. Appellant Mr. Manzoor Hussain, who was serving as an Assistant in the Ministry of Defence (Defence Division), Rawalpindi, drawing pay ‑at Rs.1,650 per month in the year 1985, was allowed increase in pay of Rs.165 by way of indexation and his pay was raised to Rs.1,815 per month. Feeling dissatisfied with such increase in pay, he made an appeal to the Secretary, Ministry of Finance on 22‑8‑1985 for increasing his pay of Rs.1,615 to Rs.1,853 by allowing him benefit of indexation in pay at Rs.203. Failing to get orders on his appeal within 90 days, he preferred this appeal on 19‑12‑1985 to seek the relief of indexation of pay by increase of Rs.203 per month.

3. The grievance of the appellant is that by virtue of proviso contained in the Office Memorandum reproduced above, the Government servants drawing pay from Rs.1.501 to Rs.1,550 were placed in advantageous position inasmuch as that they were allowed indexed pay at the minimum of Rs.1,703, although by actual calculation by the formula of 1.00 their indexed pay would have been lesser: whereas no such advantage was admissible to those drawing pay from Rs.1,600 and above as they were allowed increase strictly in accordance with the formula of 1.100. According to him, the Government servants drawing pay from Rs.1,501 to Rs.1,550 had the edge of benefit upto Rs. 203 and he also should have been allowed minimum increase of Rs. 203 while indexing his pay. By his calculation, he was entitled to have drawn Rs.1,853 instead of Rs.1,815. with effect from 1‑7‑1985.

4. The respondents have resisted the appeal contending that the Government servants drawing pay from Rs.1,501 to Rs.1,550 were not placed m advantageous position but they were given protection of minimum indexed pay at Rs.203 and the Government servants drawing pay of Rs.1,600 and above did get pay more than the minimum of Rs.1,703 by the application of the formula of 1.100.

5. The appellant has argued the appeal himself, whereas Sardar Muhammad Amir Akbar Khan, Standing Counsel has appeared for the respondents. The appellant has urged that he should have been allowed increase in pay at Rs.203 per month as was allowed to the Government servants drawing pay from Rs.1,501 to Rs.1,

550. Giving illustration of the calculations of indexed pay, he stated that a Government servant drawing pay at Rs.1,501 would be entitled to increase in pay at Rs.151 by the application of formula of 1.100, whereas he has been allowed increase of Rs.202 as to make up his total pay at Rs.1,703 as envisaged under the proviso in paragraph 1 of Office Memo, dated 26‑6‑1985, reproduced above. On the other hand, the learned counsel for the respondents has explained that the increase in indexed pay to the Government servants drawing pay from Rs.1,501 to Rs.1,550 has been allowed in order to make the deficiency as to raise it to the minimum of Rs.1,703.

6. It would appear from the text of the Office Memorandum dated 26‑6‑1985, reproduced above, that the civil servants and the Government employees of Railways, Post Offices, T&T Department as well as civilians paid from Defence Estimates were allowed increase in pay in relation to the cost of living. The increase was allowed in the form of indexation of pay as laid down therein. The indexation to the Government servants drawing basic pay upto Rs.1,500 was allowed at 1.135 and those drawing basic pay above Rs.1,550 per month at 1.100 and the Government servants drawing basic pay above Rs.1,500 per month were allowed indexation at lower rate but providing that their pay by indexation was not less than Rs.1,

703. The wisdom behind fixation of minimum indexed pay at Rs.1,703 of the Government servants drawing basic pay above Rs.1,500 per month seems to be that the indexed pay of a Government servant drawing basic pay at Rs.1,500 per month by increase at 1.135 was Rs.1,703, whereas the indexed pay of a Government servant drawing basic pay at Rs.1,501 would have come to Rs.1,652 i.e. Rs.1,501 plus Rs.151, by indexation at the prescribed rate of 1.100, and in order to bring he pay of the latter at par with that of the former, that much increase was allowed as to make up the minimum pay of Rs.1,

703. This fixation of minimum pay at Rs.1,703 of the Government servants drawing basic pay above Rs.1,500 per month was to exclude the anomaly of the Government servants drawing basic pay above Rs.1,500 to Rs.1,550 less than the Government servants drawing basic pay at Rs.1,500 per month if calculated by rate of indexation at 1.100 in the case of the former class and at 1.135 in the case of the latter class. There was also wisdom behind fixing different formula for indexed pay in respect of the Government servants drawing basic pay upto Rs.1.500 per month and those drawing basic pay above Rs.1,500 per month as to maintain equilibrium in the pay scales of the commonly known low‑salaried Government servants and the highly paid Government servants. There does not seem any anomaly or discrimination in allowing indexation at the given formula and fixation of the pay of the Government servants in accordance with the Office Memorandum dated 26‑6‑1985 and the contention of the appellant is totally misconceived. The appeal is, accordingly, dismissed as being without merit. A.A./663/Sr.F Appeal dismissed.