In a significant decision concerning service-related disputes, the Himachal Pradesh High Court has annulled a 2018 order of the State Administrative Tribunal (SAT), which had instructed the State government to extend revised pay scales to Cooperative Department Inspectors on the lines of Punjab.
The verdict was delivered by a Division Bench led by Chief Justice Gurmeet Singh Sandhawalia and Justice Ranjan Sharma, who allowed a series of writ petitions filed by the Government of Himachal Pradesh, thereby overturning the Tribunal’s April 13, 2018 ruling.
The matter arose after Inspectors from the Cooperative Societies Department sought enhanced pay scales from January 1, 1986, claiming parity with similar posts in Punjab. The Tribunal had earlier ruled in their favour, directing the State to grant revised pay along with consequential service and pensionary benefits, citing disparity as unjustified.
However, in its detailed judgment dated March 25, 2026, the High Court found that the Tribunal had exceeded its jurisdiction by effectively compelling the State to replicate another State’s pay framework.
The Bench clarified that States are not under any constitutional or legal obligation to adopt pay structures of other States unless such provisions are formally incorporated into their own rules. It emphasised that variations in recruitment norms, duties, cadre composition, and financial resources require independent consideration.
The Court also disagreed with the Tribunal’s reliance on similarity of designations, noting that it overlooked crucial differences in qualifications, responsibilities, and governing service rules, thereby weakening its conclusions.
Reinforcing the principle that pay parity across States cannot be demanded as a right, the High Court observed that such claims must be evaluated within the framework of each State’s policies. The ruling is expected to have broader implications for similar service matters.
Consequently, all directions issued by the Tribunal regarding revised pay scales and related benefits have been set aside.
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