JUDGMENT : L. Mohapatra, J. - The Petitioners in this writ application challenge the legality of the order dated 6.8.2001 passed by the Central Administrative Tribunal, Cuttack Bench, Cuttack in Original Application Nos. 362 and 363 of 2000 rejecting the prayer of the Petitioners for stepping up of their pay to that of their junior, opposite party No. 5. 2. The Petitioners were initially recruited as Clerks on different dates in the year 1984 and 1985. In due course they were promoted as Accountants and subsequently as Senior Accountants with effect from 1.1.1992. The seniority of the Petitioners as well as opposite party No. 5 had been determined in the rank of Clerk on the basis of their merit position assigned by the recruiting authority and accordingly, a gradation list had been prepared. Similarly, in the rank of Accountant also a gradation list was prepared according to their dates of promotion. Opposite party No. 5 was junior to the Petitioners all through. Petitioners and opposite party No. 5 were promoted to the post of Senior Accountant on the same date and, therefore, the Petitioners also remained senior to opposite party No. 5 in the rank of Senior Accountant. A circular was issued in the year 1988 with regard to passing of departmental examination and under the said circular, a candidate passing the examination is entitled to one advance increment. The Petitioners appeared in the departmental examination and cleared the same in the year 1994 and 1995. At the time of passing of examination they were getting pay of Rs. 1480/ and those who have passed the departmental examination in the year 1994, one advance increment had been granted and they started drawing Rs. 1520/ from April, 1994. Those who passed in the year 1995 also started drawing salary of Rs. 1520/ from April, 1995 by getting one advance increment of Rs. 40/. Opposite party No. 5, who is junior to the Petitioners also appeared in the departmental examination along with them in the year 1994 and 1995, but failed to clear the same and accordingly did not get any advance increment. The said opposite party No. 5 cleared the departmental examination in the year 1996. When the matter stood thus, the 5th Pay Commission recommendations were accepted with effect from 1.1.1996 and the scale of pay in which the Petitioners were serving was revised to Rs. 5000 8000/. The said opposite party No. 5 cleared the departmental examination in the year 1996. When the matter stood thus, the 5th Pay Commission recommendations were accepted with effect from 1.1.1996 and the scale of pay in which the Petitioners were serving was revised to Rs. 5000 8000/. The Petitioners were taken over to the revised scale of pay and started drawing Rs. 5,300/ with effect from 1.1.1996. Opposite party No. 5 who also came to the said scale of pay with effect from 1.1.1996 having passed the departmental examination in 1996 also started drawing pay of Rs. 5,300/. Even though the opposite party No. 5 failed twice in the year 1994 and 1995 to clear the departmental examination, became entitled to one advance increment from 1.4.1996 having cleared the departmental examination in the year 1996. As a result, opposite party No. 5 was granted one advance increment of Rs. 40/ which had become Rs. 150/ in the revised scale of pay and accordingly, he started getting salary of Rs. 5450/ whereas the Petitioners were getting Rs. 5,300/. Because of this anomaly in pay, the Petitioners approached the Tribunal praying for stepping up pay on the ground that their junior was getting more salary than them. The Tribunal in the impugned judgment referred to FR 22 and dismissed the Original Application filed by the Petitioners. 3. Shri Rath, the learned senior counsel appearing for the Petitioners assails the impugned judgment on the ground that the opposite party No. 5 is admittedly junior to the Petitioners in the rank of Clerk, Accountant as well as Senior Accountant. Opposite party No. 5 also failed to clear the departmental examination in the year 1994 and 1995. The 5th Pay Commission recommendation was accepted with effect from 1.1.1996 as a result of which, the pay of the Petitioners was revised to Rs. 5,000 8,000/ and they started getting pay of Rs. 5,300/ with effect from 1.1.1996. Opposite party No. 5 having cleared the departmental examination in 1996, one advance increment was paid to him from April, 1996 making his salary Rs. 5,450/ whereas the Petitioners continued to get Rs. 5,300/. The Petitioners admittedly being senior to opposite party No. 5, their pay should have been stepped up and they should have been allowed to draw pay of Rs. 5,450/ with effect from the date the opposite party No. 5 started getting the said salary. 4. 5,450/ whereas the Petitioners continued to get Rs. 5,300/. The Petitioners admittedly being senior to opposite party No. 5, their pay should have been stepped up and they should have been allowed to draw pay of Rs. 5,450/ with effect from the date the opposite party No. 5 started getting the said salary. 4. Though a counter affidavit has been filed before this Court by the Department, the learned Counsel appearing for the Department drew attention of the Court to Annexure R/1. Annexure R/1 is a communication from the Assistant Comptroller and Auditor General (N) to all field offices and Deputy Director (P) with regard to anomalies in the pay arising in the Sr. Auditors/ Sr. Accountants cadre as a result of passing Incentive Examination by a senior before 1.1.96 and junior after 1.1.96. The letter is quoted below: Circular No. 20/NGE/2002 No. 371 NGE(Entt)28 2002 OFFICE OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA Date 3 MAY 2002 1, All field offices (as per mailing list) 2. Deputy Director (P) Subject: Anomalies in pay arising in the Sr. Auditors/Sr. Accountants cadre as a result of passing Incentive Examination by a senior before 1.1.96 and junior after 1.1.96. Sir, For last few years anomalies in pay were being referred to Hqrs. Office by some field offices as a result of passing Incentive Examination for Sr. Auditors/Sr. Accountants by a senior before 1.1.96 viz a viz his junior who passed this examination after 1.1.96 and thus became eligible for grant of advance increment in the revised scale under CCS (Revised Pay) Rules 1997. Ministry of Finance, Government of India, to whom the matter was referred previously, did not allow such stepping up as circulated vide Headquarters office circular letter No. 606/NGE (Entt)/28 2000 dated 1.8.2000. Now on reconsideration the Ministry has agreed to allow benefit of stepping up of pay, as a special case, subject to the condition that no arrears of pay and allowances shall be granted. Now on reconsideration the Ministry has agreed to allow benefit of stepping up of pay, as a special case, subject to the condition that no arrears of pay and allowances shall be granted. Individual proposals for stepping up of pay of seniors who passed incentive examination before 1.1.96 and are drawing lesser pay than their juniors who passed the said examination after 1.1.96 and became eligible for grant of advance increment in revised scales under CCS (RP) Rules 1997 may be sent to this office along with comparative statements of pay from time to time and certificate of first junior, for necessary verification and issue of sanction orders. Yours faithfully, (MEERA SWARUP) ASSTT. COMPTROLLER AND AUDITOR GENERAL (N) 5 Referring to the said letter it was contended by the learned Counsel for the Department that the proposal for stepping up of pay of the seniors, who passed incentive examination before 1.1.96 and are drawing lesser pay than their juniors, who passed the said examination after 1.1.96 and became eligible for grant of advance increment in revised scales is under consideration and as it appears in paragraph 2 of the said letter, a decision has been taken to allow them benefit of stepping up of pay but without any arrears. 6. On perusal of the said letter in Annexure R/1, it appears that now on reconsideration the Ministry has agreed to allow benefit of stepping up of pay, as a special case, subject to the condition that no arrears of pay and allowances shall be granted. In this connection, reference may be made to a decision of the Apex Court in the case of Union of India (UOI) and Others Vs. P. Jagdish and Others. In the reported case the question was stepping up of pay of seniors. Incumbents not getting special pay were promoted to the post of Head Clerks earlier than their juniors, who were getting special pay. The juniors on promotion were placed on higher slab taking into account the special pay drawn by them in lower cadre. The Apex Court held that pay of seniors is required to be stepped up to figure equal to pay as fixed for juniors in higher post. In the case of Er. Gurcharan Singh Grewal and Another Vs. The juniors on promotion were placed on higher slab taking into account the special pay drawn by them in lower cadre. The Apex Court held that pay of seniors is required to be stepped up to figure equal to pay as fixed for juniors in higher post. In the case of Er. Gurcharan Singh Grewal and Another Vs. Punjab State Electricity Board and Others the Apex Court considered Rule 27 of the Fundamental Rules and held that a senior cannot be paid less than his juniors, even if anomaly in senior's pay is due to difference of incremental benefits. Senior's pay has to be stepped up with reference to higher pay of junior. In view of what has been decided in the above two cases and also decision of the Department in Annexure R/1, there cannot be any doubt in mind that the Petitioners are entitled to step up of pay and they should be paid the pay drawn by their junior, opposite party No. 5. The Petitioners are entitled to pay of Rs. 5,450/ with effect from April, 1996 i.e. the date on which their junior, opposite party No. 5 was paid. Coming to the question of arrears, the anomaly having taken place due to wrong interpretation of the rule made by the Department, the Petitioners are also entitled to the differential pay for the period from April, 1996 till the date of stepping up. 7 We accordingly set aside the order of the Tribunal impugned before us and direct that the Petitioners be paid salary of Rs. 5,450/ from April, 1996 till the actual stepping up is done and the arrear differential pay be also calculated and paid within a period of six months.