V Sri Nagesh Kumar vs COMPTROLLER AND AUDITOR GENERAL OF INDIA on 12 October 2026

ORDER

(As per Hon’ble Ms. Shalini Misra, Administrative Member)

The applicants have filed the present OA, seeking the following relief: “To call for the records pertaining to the Circular No. Staff Wing/ SO-2019 No 1327 staff (Appt.)/213-2019 dated 25.11.2019; Letter No. Au/Admn/VIII/2/Vol.X/ dated 15.09.2020 and GOO No.36 dated 06.12.2019; and quash and set aside the decision of regulating the pay of the applicants in the post of Senior Audit Officer by applying Govt. of India Orders (6) below FR 23; and direct the respondents to fix the pay of the applicants in the post of Senior Audit Officer under FR 22(1)(a)(1) w.e.f 20.11.2019, and grant all the consequential benefits and pass such other order or orders as deemed fit in the interest of justice.”

2. The brief facts of the case, as narrated by the applicants, are that they have been appointed / promoted as Auditors to work in the jurisdiction of respondent No.3. Thereafter, upon qualifying in the departmental examination, they were promoted to the post of Section Officer, Assistant Audit Officer and Audit Officers. In the 6th CPC scenario and for certain period in the 7th CPC, the Audit Officer and Senior Audit Officer posts were operated in PB-2 with GP Rs. 5400/- and in PB-3 with GP Rs.5400/- respectively. The said two posts, which were operated in two pay Levels initially, in the 7th CPC in Level-9 and Level-10 respectively, were merged w.e.f. 20.11.2019 prescribing pay Level-

10. By virtue of the said merger, they, who were working as Audit Officers with Group 'B' status, were placed in the grade of Senior Audit Officer conferring Group 'A' status in Level-10 in the 7th CPC pay scales. According to

DN: C=IN, O=Central Administrative Tribunal, OU=Central Administrative Tribunal Hyderabad Bench, PostalCode=500004, L=Hyderabad, S=Telangana, STREET="No. 05-10-193, 1st Floor, HACA Bhavan, Saifabad, Hyderabad", Phone= e9139f685446ba88b1951014524a4686cad5619e209d584134900f3759545854, SERIALNUMBER=2185a73b6158e7c1d87ad8c68c3773e034c1e5d18191c31d7a3f9699631571dc, E=dsatyanarayana74@gmail.com, CN=SATYANARAYANA DUMPALA

Location:

the applicants, the respondents have denied the benefit of pay fixation in terms of FR 22(1)(a)(1) at the time of such placement in the higher grade.

3. The applicants have submitted that all them are similarly placed and having the same grievance relating to denial of not granting the benefit of fixation while placing in the grade of Senior Audit Officer. The 1st applicant submitted a representation on 19.12.2019, stating that following the Govt. of India order (6) below FR 23, and regulating the pay while placing him in the re- designated post of Senior Audit Officer, is not correct. The representation of the 1st applicant was answered by the 2nd respondent office, vide letter dated 15.09.2020. The said decision is as follows: "Subsequent to the notification of revised RRs to the post of Sr. AO, the posts of AO and Sr.AO stand merged. The post of AOs have been redesigned as Sr.AO and placed in Pay Level

10. Consequent to merger of the post of AO with Sr.AO, there is only change in classification of the post and there is no higher responsibility involved. Placement in Level 10 higher pay level is without assessment of their suitability. Therefore, subsequent to merger of the posts, the pay cannot be fixed in terms of FR-22(1)(a)(i)."

4. The applicants have further submitted that the Ministry of Finance notified the Indian Audit and Accounts Department, Senior Accounts Officer and Senior Audit Officer Group 'A' posts Recruitment Rules, 2019, vide notification dated 18.11.2019. Thereafter, an executive decision was notified on 22.11.2019, conveying the merger of Audit Officer with Senior Audit Officer

DN: C=IN, O=Central Administrative Tribunal, OU=Central Administrative Tribunal Hyderabad Bench, PostalCode=500004, L=Hyderabad, S=Telangana, STREET="No. 05-10-193, 1st Floor, HACA Bhavan, Saifabad, Hyderabad", Phone= e9139f685446ba88b1951014524a4686cad5619e209d584134900f3759545854, SERIALNUMBER=2185a73b6158e7c1d87ad8c68c3773e034c1e5d18191c31d7a3f9699631571dc, E=dsatyanarayana74@gmail.com, CN=SATYANARAYANA DUMPALA

Location:

grade. The said Recruitment Rules (RR) provided avenue of promotion to the Assistant Audit Officers to the post of Senior Audit Officer from Level-8 to Level-10 in the pay matrix of 7th CPC. Prior to the notification of the said RR, the Assistant Audit Officers in Level-8 were being promoted as Audit Officers (Group 'B') to the corresponding pay scale, which is Level-9 in 7th CPC. At the time of such promotion, the benefit of pay fixation under FR 22(1) (a) (1) was given, having the avenue of next promotion as Senior Audit Officer (Group 'A') with the benefit of pay fixation again under FR 22(1) (a) (i). Neither in the RR nor in the executive instruction, there is any mention that while placing the Audit Officers of Group 'B' as Senior Audit Officers in Group 'A', the pay would be regulated under FR 23. According to the applicants, by virtue of the merger, their status, which was Gr. 'B', has been elevated to Gr.'A', with the change in the pay matrix. Their pay was fixed in the 7th CPC pay matrix of Level-8 as they were working as Assistant Audit Officers. Though they were promoted as Audit Officers to Level-9, they did not get any benefit of pay fixation at the time of promotion as they were granted 1st MACP benefit with the benefit of pay fixation in Level-9 before the said promotion was ordered. If no merger has taken place, obviously they would have been promoted as Senior Audit Officers with the benefit of pay fixation under FR 22(1)(a)(1) in Level- 10 of 7th CPC. Further, according to the applicants, as seen from the decision taken, all the Audit Officers working in Level-9 of the pay matrix have been upgraded as Senior Audit Officers with the change in status from Group B to Group A placing them in Level-10 in the pay matrix. Hence, the decision of not granting the pay fixation under FR22(1)(a)(1) by stating that no higher responsibility is involved is in violation of the factual situation of upgradation

DN: C=IN, O=Central Administrative Tribunal, OU=Central Administrative Tribunal Hyderabad Bench, PostalCode=500004, L=Hyderabad, S=Telangana, STREET="No. 05-10-193, 1st Floor, HACA Bhavan, Saifabad, Hyderabad", Phone= e9139f685446ba88b1951014524a4686cad5619e209d584134900f3759545854, SERIALNUMBER=2185a73b6158e7c1d87ad8c68c3773e034c1e5d18191c31d7a3f9699631571dc, E=dsatyanarayana74@gmail.com, CN=SATYANARAYANA DUMPALA

Location:

granted from Audit Officer to Senior Audit Officer and against the concept of conferring Group-A status solely for the reason of carrying higher administrative and executive responsibilities.

5. The applicants have further submitted that their pay was regulated subsequent to the merger of the post of Audit Officer with that of Senior Audit Officer in terms of Government of India Orders (6) below FR 23. The provision of FR 23 and order (6) of FR 23 are as follows: FR 23: "The holder of a post, the pay of which is changed, shall be treated as if he were transferred to a new post on the new pay; Provided that he may at his option retain his old pay until the date on which he has earned his next or any subsequent increment on the old scale, or until he vacates his post or ceases to draw pay on that time-scale. The option once exercised is final".

Order (6) of FR 23:- "Fixation of pay when the scale of pay of a post is revised upwards: When the scale of pay of a post is revised upwards without involving assumption of duties and responsibilities of greater importance, the fixation of pay of the incumbents is regulated under FR 23 and FR 22 (a)(ii) [Now FR 22(I) (a)(2)]". The facts of the instant case seen in the juxta position to the said FR 23 r/w Order (6) mentioned above, according to the applicants, clearly show that the 2nd respondent interpreted the facts wrongly and brought the issue relating to pay fixation under the ambit of FR 23. The facts are very clear that the placement of Audit Officer in the grade of Senior Audit Officer is analogous to

DN: C=IN, O=Central Administrative Tribunal, OU=Central Administrative Tribunal Hyderabad Bench, PostalCode=500004, L=Hyderabad, S=Telangana, STREET="No. 05-10-193, 1st Floor, HACA Bhavan, Saifabad, Hyderabad", Phone= e9139f685446ba88b1951014524a4686cad5619e209d584134900f3759545854, SERIALNUMBER=2185a73b6158e7c1d87ad8c68c3773e034c1e5d18191c31d7a3f9699631571dc, E=dsatyanarayana74@gmail.com, CN=SATYANARAYANA DUMPALA

Location:

a situation of upgradation. More so, it is not that only the pay scale is changed, but, there is change in the classification conferring higher status, which ipso facto show involvement of higher responsibilities. They were entitled for benefit of pay fixation in the pre-existing cadres of promotion viz. Audit Officer and Senior Audit Officer. Though they were promoted to the post of Audit Officer, but, did not enjoy the benefit of pay fixation as they were already granted MACP benefit. Prior to the said merger of posts, their seniors. who were promoted from the post of Audit Officer to Senior Audit Officer, were given the benefit of pay fixation. Even their juniors, who would be promoted from the post of Assistant Audit Officer to the merged post of Senior Audit Officer, will have the benefit of pay fixation under FR 22(1)(a)(1).

6. The applicants have contended that the DoP&T have notified the classification of posts vide OM dated 08.12.2017, placing the Central Civil Post carrying the pay in the Pay Matrix at the Level from 10 to 18 in Group 'A', excluding the person serving in the Indian Audit and Accounts Department. After the mandate of the Hon'ble Delhi High Court in WP (C) 2698 of 2013, vide order dated 17.09.2013, the 2nd respondent authority classified the Senior Audit Officers, which was post on promotion from the feeder cadre of Audit Officer to Group A. The Hon'ble High Court directed to implement the said order within 6 weeks of the order. Whereas, the 2nd respondent, while classifying the post of Senior Audit Officer in the promotion scheme of Audit Officers as Group 'A', merged both the feeder cadre and promoted post, with a further decision to withhold the benefit of pay fixation under FR 22(1)(a)(1).

DN: C=IN, O=Central Administrative Tribunal, OU=Central Administrative Tribunal Hyderabad Bench, PostalCode=500004, L=Hyderabad, S=Telangana, STREET="No. 05-10-193, 1st Floor, HACA Bhavan, Saifabad, Hyderabad", Phone= e9139f685446ba88b1951014524a4686cad5619e209d584134900f3759545854, SERIALNUMBER=2185a73b6158e7c1d87ad8c68c3773e034c1e5d18191c31d7a3f9699631571dc, E=dsatyanarayana74@gmail.com, CN=SATYANARAYANA DUMPALA

Location:

The applicants, who were denied of the benefit of one increment in Level-10 at the time of upgradation, sustained loss of about Rs.4,000/- per month in the present juncture, which may increase in future having its affect in the Pension and Pensionary benefits.

7. The applicants have, therefore, contended that the impugned decision of applying Order (6) under FR 23, by withholding the benefit of pay fixation under FR 22(1)(a)(1) causing monetary loss to the upgraded Audit Officers from Group 'B' to Group 'A', diminished the euphoria created with the elivated classification. After the Hon'ble Delhi High Court issued a mandamus to classify the post of Senior Audit Officers against promotion scheme as Group 'A' in 2013, the authorities have delayed the decision. After implementing the 7th CPC recommendations and notifying Revised Pay Rules, 2016, the pay of the applicants was fixed in the cadre of Assistant Audit Officer. Instead of ordering promotion from Group B post of Audit Officer to Group A post of Senior Audit Officer, the 2nd respondent merged the said two posts and placed the applicants in the upgraded post of Senior Audit Officer. In terms of the Service Concept enshrined by the DoP&T, which is the custodian of all service rules, Group 'A' posts carry higher administrative and executive responsibilities. Hence, the stand of the respondents that the Group 'A' status does not involve higher responsibility is patently illegal. The higher classification involves change in the hierarchy pertaining to CCS (CCA) Rules etc., The fact situation clearly show that the pay levels of the merged posts are different, classification is also different, hence the place in the higher grade post merit fixation of pay under FR 22(1)(a)(1). The interpretation given in the

DN: C=IN, O=Central Administrative Tribunal, OU=Central Administrative Tribunal Hyderabad Bench, PostalCode=500004, L=Hyderabad, S=Telangana, STREET="No. 05-10-193, 1st Floor, HACA Bhavan, Saifabad, Hyderabad", Phone= e9139f685446ba88b1951014524a4686cad5619e209d584134900f3759545854, SERIALNUMBER=2185a73b6158e7c1d87ad8c68c3773e034c1e5d18191c31d7a3f9699631571dc, E=dsatyanarayana74@gmail.com, CN=SATYANARAYANA DUMPALA

Location:

impugned reply dehorse the rules. Hence, the action of the respondents in not analyzing the factual situation in the right perspective along with the statutory rules and denying the benefit of FR 22(1) (a) (1) to the applicants causing serious monetory loss, is patently illegal and smacks malice in law, unjust, arbitrary and illegal and is in violation of Articles 14 and 16 of the Constitution. Hence, they have filed the present OA, seeking the above relief.

8. The respondents 3 and 4 have filed a detailed reply, opposing the relief sought in the OA. They have submitted that the Applicants are directly appointed or promoted to Auditor's Cadre in this Department. On qualifying the Section Officer's Grade Departmental Examination (presently Subordinate Audit/Accounts Service), they were promoted to Section Officer's Cadre (Group-B, Non-Gazetted) in the 5th Central Pay Commission (CPC)- Scale of Rs. 6,500-200-10,500. Subsequently, on completion of 3 years of regular service in Section Officer's Cadre, they were promoted as Assistant Audit Officers (Group-B Gazetted) Cadre in the 5th PC scale of Rs 7,450-225-11,500. Consequently on implementation of 6th Central Pay Commission from 01.01.2006, Ministry of Finance vide notification under GSR 622(E) dated 29.08.2008, the 5th CPC pay scale of Rs. 6,500-10,500/- is merged with the post in the scale of Rs. 7,450-11,500. Further, the merged pay scales of Rs. 6,500-10,500 and 7,450-11,500/- are also upgraded to the pay scale of Rs 7,500-12,000 and accorded upgraded Grade pay of Rs. 4,800 in PB-2 (9,300- 34,800/-). In compliance of above MoF orders, C&AG, vide Letter dated 27.05.2009, has clarified that due to upgradation of pre revised pay scales of

DN: C=IN, O=Central Administrative Tribunal, OU=Central Administrative Tribunal Hyderabad Bench, PostalCode=500004, L=Hyderabad, S=Telangana, STREET="No. 05-10-193, 1st Floor, HACA Bhavan, Saifabad, Hyderabad", Phone= e9139f685446ba88b1951014524a4686cad5619e209d584134900f3759545854, SERIALNUMBER=2185a73b6158e7c1d87ad8c68c3773e034c1e5d18191c31d7a3f9699631571dc, E=dsatyanarayana74@gmail.com, CN=SATYANARAYANA DUMPALA

Location:

Section Officers and Assistant Audit Officers and also placing them in the common pay band and grade pay, it has been decided that merged cadres of Section Officers and Assistant Audit Officers will be redesignated as Assistant Audit Officers and will be classified as Group-B, Gazetted. In view of the above orders of MoF and C&AG, the pay of all Assistant Audit Officers is fixed in the revised pay scales of 6th CPC in the pay band of Rs. 9.300-34,800 with grade pay of Rs. 4,800. As a result of merger of the two cadres, the earlier restructured cadres of Section Officers and Assistant Audit Officers in the ratio of 20:80 is discontinued with 100 percent posts operating in Assistant Audit Officer cadre. However, the 20:80 in Audit Officers and senior Audit Officers cadre was continued in 6th CPC also with the grade pay of Rs 5,400 of PB-2 and grade pay of Rs. 5,400 respectively. Consequent on implementation of 7 CPC, the corresponding pay scale of 6th CPC of Assistant Audit Officers is placed in the pay level 8 (Rs. 47,600-1,51,100). Whereas, the pay scales of Audit Officers and Senior Audit Officers were placed at level 9 (Rs 53,100- 1,67,800) and level 10 (Rs 56,100-1,77,500) respectively. The pay scales allowed for Senior Audit Officers in 6th CPC and 7th CPC happened to be the lowest rung of Group A cadre of Central Services. As per MoF OM dated 16.05.2019 received under C&AG's letter no. 67-Staff Entt. (Rules)A.R/11- 2015 dated 16.05.2019, it was intimated that in compliance with the directions of Hon'ble High Court of Delhi, the post of Senior Audit Officer in the Indian Audit and Accounts Department in Pay Level 10 earlier classified as Group B post, is classified as Group A without any change in the Pay Level. The attendant benefits such as for promotion, change in Disciplinary Authority, Contribution to CGEIS etc. is given effect from 16.05.2019. C&AG Letter No.

DN: C=IN, O=Central Administrative Tribunal, OU=Central Administrative Tribunal Hyderabad Bench, PostalCode=500004, L=Hyderabad, S=Telangana, STREET="No. 05-10-193, 1st Floor, HACA Bhavan, Saifabad, Hyderabad", Phone= e9139f685446ba88b1951014524a4686cad5619e209d584134900f3759545854, SERIALNUMBER=2185a73b6158e7c1d87ad8c68c3773e034c1e5d18191c31d7a3f9699631571dc, E=dsatyanarayana74@gmail.com, CN=SATYANARAYANA DUMPALA

Location:

1327-Staff(Appt.)/213-2019, dated 25.11.2019, have stated that consequent on classification of Senior Audit Officer post as Group A, the existing post of Audit Officer in Pay Level 9 of 7th CPC which is similar to the duties and responsibilities of Senior Audit Officers has been merged with the post of Senior Audit Officer of Pay Level 10 w.e.f. 20.11.2019. Since the post of Audit Officer has been merged with the post of Senior Audit Officer, the pay of existing Audit Officers has been regulated in terms of GOI orders (6) below FR

23. Further, C&AG's letter no. 881-Staff (Entt.I)/22-2019, dated 27.10.2021, have given a detailed clarification regarding of fixation of pay on merger of Audit Officer posts with Senior Audit Officers either fixing the pay under FR 22(1)(a)(2) or FR 23 i.e. either from the date of merger of posts (20.11.2019) or from the date of next increment (01.01.2020/01.07.2020).

9. The respondents 3 and 4 have further submitted that it was also clearly stated that no benefit of notional increment/promotional increment is to be added/granted by invoking FR 22(1)(a)(i). Only the regular increment on Date of Next Increment shall be allowed to be added to the existing pay in Level 9 as if he were transferred to a new post on a new pay. As per the instructions of above C&AG orders, the pay of Audit Officers (the 16 applicants of OA), who were merged in the post of Senior Audit Officers, is regulated in Level 10 without allowing one additional increment/notional increment in Level 9. As the matter stands thus, the applicants have filed the instant OA stating that they have been denied the benefit of Pay Fixation in terms of FR 22(1) (a) (i) at the time of such placement in the higher Grade.

DN: C=IN, O=Central Administrative Tribunal, OU=Central Administrative Tribunal Hyderabad Bench, PostalCode=500004, L=Hyderabad, S=Telangana, STREET="No. 05-10-193, 1st Floor, HACA Bhavan, Saifabad, Hyderabad", Phone= e9139f685446ba88b1951014524a4686cad5619e209d584134900f3759545854, SERIALNUMBER=2185a73b6158e7c1d87ad8c68c3773e034c1e5d18191c31d7a3f9699631571dc, E=dsatyanarayana74@gmail.com, CN=SATYANARAYANA DUMPALA

Location:

10. The respondents 3 and 4 have further submitted that consequent on merger of Audit Officer post with that of Senior Audit Officer, the existing Audit Officers are re-designated as Senior Audit Officers. As per FR 23, the holder of the post in Audit Officer cadre, is treated as if he were transferred to a new post on the new pay. The Audit Officers, who were re-designated as Senior Audit Officers, are provided with an option to retain his old pay until the date on which he has earned his next or any subsequent increment on the old scale or until he vacates his post or ceases to draw the pay on that time scale. The option once exercised is final. When the scale of pay of a post is revised upwards without involving further assumption of duties and responsibilities of greater importance, the fixation of pay of the incumbents will be regulated under FR 23 and FR 22(1)(a)(2). In accordance to the above mentioned provisions, according to the respondents, it is evident that consequent on merger of Audit Officers with that of Senior Audit Officers w.e.f. 20.11.2019, it was allowed to all Audit Officers re-designated as Senior Audit Officers to exercise an option under FR 23 for fixation of their pay in Level 10 either from the date of merger itself i.e. from 20.11.2019 or from the date of next increment i.e. 01.01.2020/01.07.2020 as the case may be. All the 16 Applicants of the OA have exercised their option according to their benefit and their pay was fixed in Level 10 accordingly. Hence, the benefit of allowing notional increment / promotional increment to be added or granted by invoking the rule FR 22(1) (a)

(1) will not arise in the instant case. As such, the representation of the Applicants was rejected, vide this office Letter dated 15.09.2020.

DN: C=IN, O=Central Administrative Tribunal, OU=Central Administrative Tribunal Hyderabad Bench, PostalCode=500004, L=Hyderabad, S=Telangana, STREET="No. 05-10-193, 1st Floor, HACA Bhavan, Saifabad, Hyderabad", Phone= e9139f685446ba88b1951014524a4686cad5619e209d584134900f3759545854, SERIALNUMBER=2185a73b6158e7c1d87ad8c68c3773e034c1e5d18191c31d7a3f9699631571dc, E=dsatyanarayana74@gmail.com, CN=SATYANARAYANA DUMPALA

Location:

11. The respondents have further submitted that consequent upon re-structuring of the Indian Audit & Accounts Department, 80% of the posts of Auditors and Section Officers (Audit) were placed in the higher scale of Sr. Auditors (Rs 425-800) and Assistant Audit Officers (Rs 650-1040) respectively with effect from 01.03.1984. On the recommendations of the IV CPC, that there should be broad parity in the pay structure, the restructuring has been extended to Audit Officers cadre and a promotional scale of Sr. Audit Officers has been created. As such, the very idea behind the creation of Sr. Audit Officer cadre, had come into existence from the re-structuring of lower cadres and the Sr. Audit Officer cadre is co-related and complimentary with the lower cadre of Audit Officer. Consequent on implementation of VI Central Pay Commission, the posts of Section Officer (Audit) and Asst. Audit Officer are merged into single-scale cadre and re-designated as Asst. Audit Officer with the Pay Band of Rs 4800/- with Pay Scale of 9300-34800/-. The re-structuring of Auditors and Sr. Auditors cadre in 20:80 ratio is also further re-structured by creating the cadres of Supervisor (Audit) (5%), Asst. Supervisor (Audit) (15%), Sr. Auditors (30%) and Auditors (50%) respectively in VII Pay Commission. Consequent on Hon’ble High Court’s Judgment in Classification of Sr. Audit Officers cadre from Group 'B' to Group 'A', the posts of Audit Officers to Pay level 10 of Sr. Audit Officers w.e.f. 20.11.2019, duly upgrading the Pay Level 9 of Audit Officer to the Pay Level 10 of Sr. Audit Officer. Subsequent to merger of the post of Audit Officer with that of Sr. Audit Officer, the Pay of the existing Audit Officer is regulated in terms of Govt. of India orders (6) below FR 23. When the scale of pay of a post is revised upwards without involving assumption of duties and responsibilities of greater importance the fixation of

DN: C=IN, O=Central Administrative Tribunal, OU=Central Administrative Tribunal Hyderabad Bench, PostalCode=500004, L=Hyderabad, S=Telangana, STREET="No. 05-10-193, 1st Floor, HACA Bhavan, Saifabad, Hyderabad", Phone= e9139f685446ba88b1951014524a4686cad5619e209d584134900f3759545854, SERIALNUMBER=2185a73b6158e7c1d87ad8c68c3773e034c1e5d18191c31d7a3f9699631571dc, E=dsatyanarayana74@gmail.com, CN=SATYANARAYANA DUMPALA

Location:

pay of the incumbents will be regulated under FR 23 and FR 22(1)(a)(2). Accordingly, all the 16 Audit Officers (applicants) who are merged to the upgraded classified Group 'A' post of Sr. Audit Officer are allowed the option under FR 23 or FR 22(1) (a) (2), i.e., either from the date of merger itself, i.e., from 20.11.2019 or from the date of next increment i.e., 01.01.2020/01.07.2020 as the case may be. All the 16 applicants have given their option according to their advantage for fixation of Pay which was regulated accordingly. Hence, the contention of the applicants that they have to allow fixation under FR 22(1)(a)(i) will not arise in the instant case, as there are no assumption of higher responsibilities and duties due to merger of Audit Officer cadre with Sr. Audit Officer cadre. Further, the respondents have submitted that the duties performed by Audit Officer and Sr. Audit Officer are one and the same without any changes. In view of the foregoing, according to the respondents, the orders on fixation of pay of the Comptroller and Auditor General on merger of the posts of Audit Officers and Sr. Audit Officers are governed under the purview of FR 23 and FR 22(1)(a)(2), is not arbitrary, illegal, unwarranted and not in violation of article 14 and 16 of the Constitution. Hence, the applicants could not link up the re-structuring of Audit Officer/Sr. Audit Officers cadre with the merger of Audit Officer/Sr. Audit Officer cadre.

12. The respondents 3 and 4 have further contended that consequent on classification of Audit Officers from Group 'B' to Group 'A' and merger of Audit Officers with Sr. Audit Officers, in exercise of powers conferred by Clause (5) of Article 148 of the Constitution, and in supersession of the

DN: C=IN, O=Central Administrative Tribunal, OU=Central Administrative Tribunal Hyderabad Bench, PostalCode=500004, L=Hyderabad, S=Telangana, STREET="No. 05-10-193, 1st Floor, HACA Bhavan, Saifabad, Hyderabad", Phone= e9139f685446ba88b1951014524a4686cad5619e209d584134900f3759545854, SERIALNUMBER=2185a73b6158e7c1d87ad8c68c3773e034c1e5d18191c31d7a3f9699631571dc, E=dsatyanarayana74@gmail.com, CN=SATYANARAYANA DUMPALA

Location:

IA&AD (Sr. Audit Officer) Recruitment Rules 2002, a revised Recruitment Rules 2019, were issued by C&AG's Office for the posts of Sr. Audit Officers Group 'A' Recruitment Rules 2019. Accordingly, the feeder cadre for promotion to the posts of Sr. Audit Officers, would be Asst. Audit Officer with 7 years of regular service as on the crucial date of 1ª January. Since the promotion of Asst. Audit Officer as Sr. Audit Officer involves assumption of higher duties and responsibilities, the fixation of pay under FR 22(1)(a)(1) was allowed as natural justice.

13. The respondents 3 and 4 have denied the averment of the applicants that on promotion as Audit Officer to Level 9, they were not allowed the fixation benefit as they were already allowed MACP, stating that the same is not maintainable, since the very concept of MACP is to minimize the hardship of the employees by allowing financial upgradation under the said scheme to avoid stagnation for more than 10 years in a cadre. Accordingly, the applicants, who were promoted as Asst. Audit Officer (erstwhile Section Officers) during the years 2003 and 2005, were allowed MACP for stagnating 10 years from Level 8 to Level 9 during the years 2013, and 2015 respectively. Further, as per the MACP scheme, they were allowed fixation of pay under FR 22(1)(a)(1) in Level 9. In the MACP order, according to the respondents 3 and 4, it was clearly stated that once fixation was allowed in the promotional post, again the fixation will not be allowed when they are promoted to the regular cadre, since they are allowed the benefit of higher pay scale in MACP. Hence, non- application of fixation of Pay benefits on their promotions as Audit Officers is

DN: C=IN, O=Central Administrative Tribunal, OU=Central Administrative Tribunal Hyderabad Bench, PostalCode=500004, L=Hyderabad, S=Telangana, STREET="No. 05-10-193, 1st Floor, HACA Bhavan, Saifabad, Hyderabad", Phone= e9139f685446ba88b1951014524a4686cad5619e209d584134900f3759545854, SERIALNUMBER=2185a73b6158e7c1d87ad8c68c3773e034c1e5d18191c31d7a3f9699631571dc, E=dsatyanarayana74@gmail.com, CN=SATYANARAYANA DUMPALA

Location:

not irregular and contrary to the laid rules. The respondents 3 and 4 have further denied the averment of the applicants of assumption of higher responsibilities as not maintainable, since the duties and responsibilities of Audit Officers and Sr. Audit Officers carry the same.

14. The respondents 3 and 4 have further contended that duly following the orders of FR & SR in regard to the merger of posts from one cadre to other cadre without involving the assumption of higher duties and responsibilities vide GOI Orders (6) below FR 23 and FR 22(1)(a)(2), were correctly followed in the instant case, while allowing the fixation benefit from the date of merger or from the date of next increment to the 16 Audit Officers, who were merged to the posts of Sr. Audit Officers. The applicants were not denied any natural justice and correctly allowed fixation benefit in level 10, as per rules. As and when new orders were passed in compliance of judicial instructions or executive orders, it would be seen to the maximum extent, the benefits that were to be allowed to the employees within the parameters of Rules and Regulations in course were followed. When a new order has been passed, some officials may or may not get additional benefits, but, as per the rules in force, the benefits accrued has to be extended / accepted when they are implemented under natural justice. In the instant case also, whatever benefits that are to be accrued, within the purview of FR & SR, were allowed to the 16 applicants without any denial. The remedial measures, sought by the applicants, cannot be extended by their office since the fixation for merging of posts from one cadre to other cadre under GOI 6 of FR 23 and FR 22(1)(a)(2) has been correctly

DN: C=IN, O=Central Administrative Tribunal, OU=Central Administrative Tribunal Hyderabad Bench, PostalCode=500004, L=Hyderabad, S=Telangana, STREET="No. 05-10-193, 1st Floor, HACA Bhavan, Saifabad, Hyderabad", Phone= e9139f685446ba88b1951014524a4686cad5619e209d584134900f3759545854, SERIALNUMBER=2185a73b6158e7c1d87ad8c68c3773e034c1e5d18191c31d7a3f9699631571dc, E=dsatyanarayana74@gmail.com, CN=SATYANARAYANA DUMPALA

Location:

allowed for the 16 applicants. Further, the 16 applicants have also accepted the option and exercised the same on their own volition. Once the option exercised is final, they cannot seek further reliefs since they pretty well know the rules in force in merger of posts.

15. The respondents 3 and 4 have, therefore, contended that the relief sought by the applicants in this OA, is not valid in view of the facts stated supra, and the applicants are not entitled to the relief as claimed, and prayed this Tribunal to dismiss the OA, ad devoid of merit in the interest of justice.

16. Heard the learned counsel on both sides and perused the material placed on record.

17. The relief sought by the applicants is to quash and set aside the decision of regulating the pay of the applicants in the post of Senior Audit Officer by applying Govt. of India Orders (6) below FR 23; and direct the respondents to fix the pay of the applicants in the post of Senior Audit Officer under FR 22 (1) (a) (1) w.e.f 20.11.2019.

18. As submitted by the applicants, on the recommendation of the 7th CPC, the post of Audit Officer and Senior Audit Officer in Level-9 & Level-10 respectively, were merged w.e.f 20.11.2019, and by virtue of the said merger, all the applicants, who were working as Audit Officers Group ‘B’ status, got placed in the grade of Senior Audit Officer, conferring Group ‘A’ status in Level-10 in the 7th CPC pay scales.

DN: C=IN, O=Central Administrative Tribunal, OU=Central Administrative Tribunal Hyderabad Bench, PostalCode=500004, L=Hyderabad, S=Telangana, STREET="No. 05-10-193, 1st Floor, HACA Bhavan, Saifabad, Hyderabad", Phone= e9139f685446ba88b1951014524a4686cad5619e209d584134900f3759545854, SERIALNUMBER=2185a73b6158e7c1d87ad8c68c3773e034c1e5d18191c31d7a3f9699631571dc, E=dsatyanarayana74@gmail.com, CN=SATYANARAYANA DUMPALA

Location:

19. The contention of the applicants is that they have been denied the benefit of pay fixation in terms of FR 22 (1) (a)(1) at the time of such placement in the higher grade. When the first applicant submitted his representation on 19.12.2019, for redressal of his grievance, the reply given by the respondents clearly puts that consequent to merger of the post of Audit Officer with Senior Audit Officer, there is only change in classification of the post and there is no higher responsibility involved. Also, placement in Level-10 with higher pay level, is without any assessment of their suitability. Therefore, their pay cannot be fixed in terms of FR 22(1)(a)(1).

20. The applicants have further contended that the Ministry of Finance notified the Indian Audit and Accounts Department, Senior Accounts Officer and Senior Audit Officer Group 'A' posts Recruitment Rules, 2019, on 18.11.2019. Thereafter, an executive decision was notified on 22.11.2019, for merger of Audit Officer with Senior Audit Officer grade. Prior to the notification of the said Recruitment Rules, the Assistant Audit Officers in Level-8, were being promoted as Audit Officers (Group 'B') to the corresponding pay scale, which is Level-9 in 7th CPC, and at the time of such promotion, the benefit of pay fixation under FR 22(1) (a) (1) was given. The Senior Audit Officer (Group 'A') is the next promotion. But, neither in the Recruitment Rules nor in the executive instruction, there is any mention that while placing the Audit Officers of Group 'B' as Senior Audit Officers in Group 'A', the pay would be regulated under FR 23.

DN: C=IN, O=Central Administrative Tribunal, OU=Central Administrative Tribunal Hyderabad Bench, PostalCode=500004, L=Hyderabad, S=Telangana, STREET="No. 05-10-193, 1st Floor, HACA Bhavan, Saifabad, Hyderabad", Phone= e9139f685446ba88b1951014524a4686cad5619e209d584134900f3759545854, SERIALNUMBER=2185a73b6158e7c1d87ad8c68c3773e034c1e5d18191c31d7a3f9699631571dc, E=dsatyanarayana74@gmail.com, CN=SATYANARAYANA DUMPALA

Location:

21. The applicants have further contended that by virtue of the merger, their status, which is Gr. 'B', has been elevated to Gr.'A', with the change in the pay matrix. Their pay was fixed in the 7th CPC pay matrix of Level-8, as they were working as Assistant Audit Officers. Though they were promoted as Audit Officers to Level-9, they were denied the benefit of pay fixation at the time of promotion as they were granted 1st MACP benefit with the benefit of pay fixation in Level-9 before the said promotion was ordered. Thus, if any merger has been taken place, the applicants would have got promotion as Senior Audit Officers with the benefit of pay fixation under FR 22(1)(a)(1) in Level-10 of 7th CPC, instead of the Audit Officers working under Level-9 of the pay matrix, who have been upgraded as Senior Audit Officers with the change in status from Group ‘B’ to Group ‘A’ without pay fixation under FR22(1)(a)(1) by stating that no higher responsibility is involved. This is in violation of the factual situation of upgradation, as the Senior Audit Officer is Group-A status and carries higher administrative and executive responsibilities.

22. The applicants have further contended that their pay was regulated subsequent to the merger in terms of Government of India Orders (6) below FR 23, which is as follows: Order (6) of FR 23:- "Fixation of pay when the scale of pay of a post is revised upwards: When the scale of pay of a post is revised upwards without involving assumption of duties and responsibilities of greater importance, the fixation of pay of the incumbents is regulated under FR 23 and FR 22 (a)(ii) [Now FR 22(I)

(a) (2)]".

DN: C=IN, O=Central Administrative Tribunal, OU=Central Administrative Tribunal Hyderabad Bench, PostalCode=500004, L=Hyderabad, S=Telangana, STREET="No. 05-10-193, 1st Floor, HACA Bhavan, Saifabad, Hyderabad", Phone= e9139f685446ba88b1951014524a4686cad5619e209d584134900f3759545854, SERIALNUMBER=2185a73b6158e7c1d87ad8c68c3773e034c1e5d18191c31d7a3f9699631571dc, E=dsatyanarayana74@gmail.com, CN=SATYANARAYANA DUMPALA

Location:

23. It is further the contention of the applicants that the interpretation and understanding of the 2nd respondent on this issue is wrong and unjustified because the placement of Audit Officer in the grade of Senior Audit Officer is similar to a situation of upgradation, and since the classification of the post has changed from Group ‘B’ to Group ‘A’, the applicants are entitled for benefit of pay fixation in the pre-existing cadres of promotion viz. Audit Officer and Senior Audit Officer.

24. The applicants have further contended that the DoP&T have notified the classification of posts vide OM dated 08.12.2017, placing the Central Civil Post carrying the pay in the Pay Matrix at the Level from 10 to 18 in Group 'A', excluding the person serving in the Indian Audit and Accounts Department. After the mandate of the Hon'ble Delhi High Court in WP (C) 2698 of 2013, vide order dated 17.09.2013, the 2nd respondent authority classified the Senior Audit Officers, which was post on promotion from the feeder cadre of Audit Officer to Group A. The Hon'ble High Court had directed to implement the said order within 6 weeks of the order, whereas, the 2nd respondent, while classifying the post of Senior Audit Officer in the promotion scheme of Audit Officers as Group 'A', merged both the feeder cadre and promoted post, with a further decision to withhold the benefit of pay fixation under FR 22(1)(a)(1). The applicants, who were denied of the benefit of one increment in Level-10 at the time of upgradation, sustained loss of about Rs.4,000/- per month in the present juncture, which may increase in future having its affect in the pension and pensionary benefits.

DN: C=IN, O=Central Administrative Tribunal, OU=Central Administrative Tribunal Hyderabad Bench, PostalCode=500004, L=Hyderabad, S=Telangana, STREET="No. 05-10-193, 1st Floor, HACA Bhavan, Saifabad, Hyderabad", Phone= e9139f685446ba88b1951014524a4686cad5619e209d584134900f3759545854, SERIALNUMBER=2185a73b6158e7c1d87ad8c68c3773e034c1e5d18191c31d7a3f9699631571dc, E=dsatyanarayana74@gmail.com, CN=SATYANARAYANA DUMPALA

Location:

25. As per the contention of the applicants, the pay levels of the merged posts are different, classification is also different, therefore, after their placement in the higher grade, pay should be fixed under FR 22 (1) (a) (1), and this request of the applicants has been made in view of the fact that prior to the merger, the seniors earlier got pay fixation benefit under FR 22 (1) (a) (1), and similar benefit will be available to the juniors also. Since the applicants have been promoted as Audit Officers on 01.01.2019, and their pay was already fixed by granting MACP from Level-8 to Level-9, on merger of Audit Officers and Senior Audit Officers in November 2019, the applicants were given the status of Senior Audit Officer, vide GOO No.36 of 06.12.2019. The pay has to be regulated as per FR 23 Order 6 only. For example, the first Applicant’s pay was fixed at Rs.82,400/- (Cell 14 of Level-10), without giving increment in lower grade. The applicants have submitted options for fixation of pay in Level-10 from the date of next increment i.e., w.e.f 01.07.2020, under FR 22

(1) (a) (2). But, despite such options, the respondents have not fixed the pay in Senior Audit Officer grade after granting one increment in the pre-merged lower post of Audit Officer, thus, causing monetary loss to the applicants in perpetuity.

26. The respondents 3 and 4, in their detailed reply, have submitted that due to upgradation of pre-revised pay scales of Section Officers, and Assistant Audit Officers, and placing them in the common pay band and grade pay, it has been decided that merged cadres of Section Officers and Assistant Audit Officers will be redesignated as Assistant Audit Officers, and will be classified

DN: C=IN, O=Central Administrative Tribunal, OU=Central Administrative Tribunal Hyderabad Bench, PostalCode=500004, L=Hyderabad, S=Telangana, STREET="No. 05-10-193, 1st Floor, HACA Bhavan, Saifabad, Hyderabad", Phone= e9139f685446ba88b1951014524a4686cad5619e209d584134900f3759545854, SERIALNUMBER=2185a73b6158e7c1d87ad8c68c3773e034c1e5d18191c31d7a3f9699631571dc, E=dsatyanarayana74@gmail.com, CN=SATYANARAYANA DUMPALA

Location:

as Group-B, Gazetted. Therefore, the pay of all Assistant Audit Officers is fixed in the revised pay scales of 6th CPC in the pay band of Rs. 9.300-34,800 with grade pay of Rs. 4,800. Consequent on implementation of the 7th CPC, the corresponding pay scale of 6th CPC of Assistant Audit Officers is placed in the pay level 8 (Rs.47,600-1,51,100/-), whereas, the pay scales of Audit Officers and Senior Audit Officers were placed at level 9 (Rs.53,100-1,67,800/-) and level 10 (Rs.56,100-1,77,500/-) respectively. The pay scales allowed for Senior Audit Officers in 6th CPC and 7th CPC, happened to be the lowest rung of Group A cadre of Central Services. In compliance with the directions of the Hon'ble High Court of Delhi, the post of Senior Audit Officer in the Indian Audit and Accounts Department in Pay Level 10, which was earlier classified as Group B post, was classified as Group A, without any change in the Pay Level. The attendant benefits such as for promotion, change in Disciplinary Authority, Contribution to CGEIS etc., is given effect from 16.05.2019. the C&AG Letter No. 1327-Staff (Appt.)/213-2019, dated 25.11.2019, further clarified that consequent on classification of Senior Audit Officer post as Group A, the existing post of Audit Officer in Pay Level 9 of 7th CPC, which is similar to the duties and responsibilities of Senior Audit Officers, has been merged with the post of Senior Audit Officer of Pay Level 10 w.e.f. 20.11.2019. Since the post of Audit Officer has been merged with the post of Senior Audit Officer, the pay of existing Audit Officers, has been regulated in terms of GOI orders (6) below FR 23. The C&AG's letter no. 881-Staff (Entt.I)/22-2019, dated 27.10.2021, further clarifies that the fixation of pay on merger of Audit Officer posts with Senior Audit Officers either fixing the pay

DN: C=IN, O=Central Administrative Tribunal, OU=Central Administrative Tribunal Hyderabad Bench, PostalCode=500004, L=Hyderabad, S=Telangana, STREET="No. 05-10-193, 1st Floor, HACA Bhavan, Saifabad, Hyderabad", Phone= e9139f685446ba88b1951014524a4686cad5619e209d584134900f3759545854, SERIALNUMBER=2185a73b6158e7c1d87ad8c68c3773e034c1e5d18191c31d7a3f9699631571dc, E=dsatyanarayana74@gmail.com, CN=SATYANARAYANA DUMPALA

Location:

under FR 22(1)(a)(2) or FR 23 i.e., either from the date of merger of posts (20.11.2019) or from the date of next increment (01.01.2020/01.07.2020).

27. The respondents 3 and 4 have furher clarified that it was very clear to the applicants that no benefit of notional increment/promotional increment will be added or granted by invoking FR 22(1)(a)(i). Only the regular increment on the date of next Increment shall be allowed to be added to the existing pay in Level 9, as if the applicants were transferred to a new post on a new pay. Therefore, the pay of the applicants got regulated in Level 10 without allowing one additional increment/notional increment in Level 9. As per FR 23, the holder of the post in Audit Officer cadre, is treated as if he was transferred to a new post on the new pay. The Audit Officers, who were re-designated as Senior Audit Officers, are provided with an option to retain his old pay until the date on which he has earned his next or any subsequent increment on the old scale or until he vacates his post or ceases to draw the pay on that time scale. The option once exercised is final. All the 16 applicants have exercised their option according to their benefit and their pay has been fixed in Level-10 accordingly. Since FR 22 (1) (a) (1) is not applicable to the applicants, their representations was rejected on 15.09.2020.

28. The respondents have also submitted that since there is no assumption of higher responsibilities and duties, due to merger of Audit Officer cadre with Senior Auditor Officer, the pay fixation under FR 22 (1) (a) (1) will not be

DN: C=IN, O=Central Administrative Tribunal, OU=Central Administrative Tribunal Hyderabad Bench, PostalCode=500004, L=Hyderabad, S=Telangana, STREET="No. 05-10-193, 1st Floor, HACA Bhavan, Saifabad, Hyderabad", Phone= e9139f685446ba88b1951014524a4686cad5619e209d584134900f3759545854, SERIALNUMBER=2185a73b6158e7c1d87ad8c68c3773e034c1e5d18191c31d7a3f9699631571dc, E=dsatyanarayana74@gmail.com, CN=SATYANARAYANA DUMPALA

Location:

applicable. The duties performed by the Audit Officer and the Senior Audit Officer are one and the same.

29. The respondents have contended that consequent on classification of Audit Officers from Group 'B' to Group 'A' and merger of Audit Officers with Sr. Audit Officers, in exercise of powers conferred by Clause (5) of Article 148 of the Constitution, and in supersession of the IA&AD (Sr. Audit Officer) Recruitment Rules 2002, a revised Recruitment Rules 2019, got issued by the respondents for the posts of Sr. Audit Officers Group 'A' Recruitment Rules 2019. Accordingly, the feeder cadre for promotion to the posts of Sr. Audit Officers, would be Assistant Audit Officer with 7 years of regular service as on the crucial date of 1ª January. Since the promotion of Assistant Audit Officer as Sr. Audit Officer involves assumption of higher duties and responsibilities, the fixation of pay under FR 22(1)(a)(1) was allowed as natural justice. The applicants, who were promoted as Assistant Audit Officer (erstwhile Section Officers) during the years 2003 and 2005, were allowed MACP for stagnating 10 years from Level 8 to Level 9 during the years 2013, and 2015 respectively. As per the MACP scheme, they were allowed fixation of pay under FR 22(1)(a)(1) in Level 9. Therefore, once fixation was allowed in the promotional post, again the fixation will not be allowed when regular promotion happens. Therefore, non-application of fixation of Pay benefits on their promotions as Audit Officers is justified and according to rules in vogue.

DN: C=IN, O=Central Administrative Tribunal, OU=Central Administrative Tribunal Hyderabad Bench, PostalCode=500004, L=Hyderabad, S=Telangana, STREET="No. 05-10-193, 1st Floor, HACA Bhavan, Saifabad, Hyderabad", Phone= e9139f685446ba88b1951014524a4686cad5619e209d584134900f3759545854, SERIALNUMBER=2185a73b6158e7c1d87ad8c68c3773e034c1e5d18191c31d7a3f9699631571dc, E=dsatyanarayana74@gmail.com, CN=SATYANARAYANA DUMPALA

Location:

30. It is to be noted that on the principle of administrative efficiency and Government policy, merger of posts of Audit Officer cadre carrying the pay level-9 with Senior Audit Officer cadre carrying pay level-10 w.e.f 20.11.2019, has been done. The pay of existing Audit Officers has been regulated in terms of GOI Orders (6) below FR 23. All applicants have been given option either to get the fixation of pay from the date of merger of posts i.e., 20.11.2019 or from the date of next increment i.e., 01.01.2020 or 01.07.2020. All the applicants have exercised their option without raising any concern about their pay fixation under GOI orders 6 (below FR 23). The applicants were not denied any natural justice and scrupulously the rules were implemented and pay fixation benefit in Level-10 has been carried out by the respondents. There is no iota of doubt in their pay fixation, which was done in the year 2019. Claiming certain benefit on the ground that the said benefit was allowed in the past is not justified because of the policy change. The Recruitment Rules, 2019, as notified by the respondents, are not challenged by the applicants. They have enjoyed the benefit and did not protest at the time of grant of the same.

31. The Fundamental Rule 23 states that when the pay of post is changed, the holder of that post is treated as if they were transferred to new post on the new pay scale. A Government servant can choose to change their new pay only they earn their next increment on that old scale or until they vacate the post or stop drawing pay on it. But the option once exercised by the employee is final and cannot be changed. The reasoning behind this policy is that the altered pay is not to the disadvantage of the employee. In this case, all the applicants have

DN: C=IN, O=Central Administrative Tribunal, OU=Central Administrative Tribunal Hyderabad Bench, PostalCode=500004, L=Hyderabad, S=Telangana, STREET="No. 05-10-193, 1st Floor, HACA Bhavan, Saifabad, Hyderabad", Phone= e9139f685446ba88b1951014524a4686cad5619e209d584134900f3759545854, SERIALNUMBER=2185a73b6158e7c1d87ad8c68c3773e034c1e5d18191c31d7a3f9699631571dc, E=dsatyanarayana74@gmail.com, CN=SATYANARAYANA DUMPALA

Location:

exercised their option according to their advantage. Therefore, after availing the same, they cannot question the same.

32. With the above deliberations, this Tribunal finds no merit in the OA, and the OA is accordingly dismissed being devoid of merits. All miscellaneous applications, if any, also stand disposed of. There shall be no order as to costs.

(SHALINI MISRA)

(MANISH GARG) ADMINISTRATIVE MEMBER

JUDICIAL MEMBER

Dsn

DN: C=IN, O=Central Administrative Tribunal, OU=Central Administrative Tribunal Hyderabad Bench, PostalCode=500004, L=Hyderabad, S=Telangana, STREET="No. 05-10-193, 1st Floor, HACA Bhavan, Saifabad, Hyderabad", Phone= e9139f685446ba88b1951014524a4686cad5619e209d584134900f3759545854, SERIALNUMBER=2185a73b6158e7c1d87ad8c68c3773e034c1e5d18191c31d7a3f9699631571dc, E=dsatyanarayana74@gmail.com, CN=SATYANARAYANA DUMPALA

Location: