Service Matters: High Court of Allahabad set aside order of Government withdrawing the benefit of bonus to Government Employees

Withdrawing the benefit of bonus FROM Employees: High Court of Allahabad in Case title - Anurag Mehrotra v. State Of U.P.Thru Addl.Chief Secy.Finance Deptt. Lko & Ors., Case citation: 2022 has held that 

" it is settled that the State Government cannot issue executive instructions with regard to the field already occupied by the G.P.F. Rules of 1985 issued under Article 309 of the Constitution of India. It also cannot modify the said rules by an executive order. The G.P.F. Rules of 1985 provides for 1% bonus. There is no power left in the State Government to withdraw or repeal the said bonus in exercise of its executive power. The same can only be withdrawn or modified in exercise of power under Article 309 of the Constitution of India. The Government Order dated 05.07.1986 is not issued in exercise of power under Article 309 but is issued in exercise of its executive power. Rule 11(1) of the G.P.F. Rules of 1985 only empowers the State Government the subscribed interest at such rate as may be determined for each year by Government of India. In exercise of power under Rule 11(1) of G.P.F. Rules of 1985 the State Government cannot withdraw the incentive bonus required to be given under Rule 12 of the G.P.F. Rules of 1985. Therefore, the Government Order dated 05.07.1986 to the extent it withdraws the benefit of bonus required to be paid under Rule 12 of the G.P.F. Rules, 1985 is declared to be ultra-vires and is set aside.-PARA 14.

"Any rule framed under Article 309 can only be replaced by an Act of an appropriate legislature. It cannot be replaced by executive order under Article 162 of the Constitution of India...The State Government cannot issue executive instructions with regard to the field already occupied by the G.P.F. Rules of 1985 issued under Article 309 of the Constitution of India. It also cannot modify the said rules by an executive order"

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