In Brief
The Tamil Nadu State Government issued orders reducing pay scales of certain government employee categories (including Assistant Engineers) after initially granting higher scales based on the 6th Central Pay Commission recommendations. The High Court held that pay reductions without notice or hearing violated natural justice principles and directed constitution of a fresh Pay Grievance Redressal Committee with an independent retired judge as chairman. The Supreme Court upheld this approach, clarifying that while the Government may legitimately address pay anomalies through expert committees, such exercises must follow procedural fairness. Critically, the Court held that benefits already paid cannot be recovered; any reductions must operate prospectively only from the new decision's effective date.
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