UNION OF INDIA Vs. S JAISHANKAR

JUDGEMENT

(1.) Rule DB.

(2.) With the consent of the learned counsel for the parties the writ petition is taken up for final hearing.

(3.) The respondents, most of whom are from Indian Foreign Service, were posted in the Indian Embassy at Tokyo(Japan) and the Consulate General of India, Osaka during the relevant period. They used to be paid pay plus Foreign Allowance in lieu of Dearness Allowance and the same was calculated on the "Inspection based system" which remained prevalent from 1984 till January, 1998. Foreign Allowance was intended to cover the additional cost of living for the officials posted abroad and from 1984 till January, 1998 it was being given on the basis of survey report of Foreign Service Inspectors given after visiting concerned countries. Pay and Foreign Allowance was fixed in Indian Rupees but paid in the local currency of the particular country. For payment of pay and Foreign Allowance the conversion into local currency was at the rate of exchange prevailing at the time of the visit of the Foreign Service Inspectors which was called Emoluments Rate of Exchange(ERE) and accordingly for the Indian officials posted in Japan Emolument Rate of Exchange(ERE) was fixed at Re. 1=Yen 27.2 in 1983 and it continued till January, 1998. Following the Fifth Pay Commission's recommendations emoluments of Government employees were to be revised w.e.f. 1-1-96 but its implementation was delayed considerably. In the meantime Pay and Foreign Allowance continued to be paid on the basis of ERE to officials posted abroad. Vide letter dated 19-02-98(by which time Fifty Pay Commission's report had not been implemented for respondents) of the Ministry of External Affairs Government of India, the Inspection based system was replaced by Indexation Scheme for calculating pay and Foreign Allowance to be fixed w.e.f. 01-01-98 in US dollars for all officials all posted in different countries. The Official rate of Exchange (ORE) as on 01-01-1998 which was adopted in place of ERE w.e.f. 01-01-98 was taken as US dollar = Rs. 36.82. That resulted in reduction of Foreign Allowance for respondents herein. The Government further brought in reduction in emoluments including Foreign Allowance w.e.f. 1-4-98 vide its circular dated 16-09-98. In the meantime the Government implemented recommendations of Fifth Pay Commission but vide letter dated 12-05-1998 the arrears of pay and foreign allowance to officials posted abroad w.e.f. 01-01-1996 to 31-12-1997 were ordered to be paid at ORE instead of ERE with the result that part of the emoluments stood paid to the officials at the earlier prevalent Emolument Rate of Exchange(ERE) while part was calculated at Official Rate of Exchange(ORE).