P.K. Sarin v. Govt. of NCT
In the Central Administrative Tribunal, Principal Bench, New Delhi
O.A. No. 824/2007
Before Mr V.K. Bali, Chairman and Mr L.K. Joshi, Vice Chairman (A)
Decided on July 3, 2007

Relevancy of the case: Payment of salary through Electronic Clearance System

Statutes & Provisions Involved

• The Information Technology Act, 2000 (Section 6)
• The Administrative Tribunals Act, 1985 (Section 19)
• The Central Vigilance Commission Act, 2003 (Section 8(1)(h))

Relevant Facts of the Case

• An Assistant Engineer Public Works Department filed an application against the non-payment of salary in cash by the Chief Engineer, Govt. of NCT for the months of February, March and April 2007.
• Consequently, the application directed the respondents to make payments to him in cash according to the rules. In addition, it requested the bench to quash any instructions which are contrary to the Statutory Rules.
• Furthermore, the applicant did not accept the respondent’s payment system of salary through an Electronic Clearance System.

Prominent Arguments by the Advocates

• The plaintiff’s counsel argued that the mode adopted by the respondents for payment of salary, i.e. the payment of salary through the Electronic Clearance System would be wholly unacceptable to the applicant.
• Furthermore, the applicant contended that once the rules prescribed that the salary would be paid by way of cash, it would be the discretion of the applicant to receive the salary in cash or any other mode.
• The respondent’s counsel contended that RBI introduced the Electronic Clearance System. Hence, it was decided as a policy by Govt. of NCT of Delhi to disburse the salary of employees through this system. The salary would be credited into the bank accounts of the employees directly.

Opinion of the Bench

• The bench opined that the applicant is unable to prove any prejudice caused to him if he receives the salary by the Electronic Clearance System.
• It further noted that the application is an abuse of law as it does not infringe any right vested in the employees. The system of payment of salary through the Electronic Clearance System is a major administrative reform offering various remarkable simplifications by removing the need for issuing cheques and providing for immediate transfer of funds to the designated accounts of the employees.
• Furthermore, the decision of the Govt. of NCT of Delhi to make payments through the Electronic Clearance System rather than issuing cheques or paying cash is in accordance with the provisions of the Information Technology Act, 2000, i.e., section 6(1).
• This mode does not affect any civil rights of the applicant adversely. Moreover, the government’s uniform policy is on good grounds.
• Nonetheless, the bench also pertinently noted that the applicant’s lack of accepting the salary through the Electronic Clearance System does not amount to a case of non-payment of salary to the applicant.

Final Decision

• The bench, thus dismissed the application without costs.