- (1.) Leave granted.
(2.) This appeal arises from a judgment and order of the Andhra Pradesh High Court dated 11 August 2020. The State of Andhra Pradesh issued GOMs No. 26 on 31 March 2020 and GOMs No. 37 on 26 April 2020. The backdrop for the orders was the outbreak of Covid-19 and the financial crises which had resulted as a consequence. The revenues of the State of Andhra Pradesh were impacted by the onset of the pandemic. The financial position of the State finds reference in the judgment of the High Court, which has been extracted below: "The States' own revenue consisting of tax revenue and non tax revenue have shown a precipitous decline of 52% i.e. Rs 7593 crores in first quarter of 2020-21 as compared to 2019-20. The receipts were only Rs 7089 crores against Rs 14,682 crores of 2019-20. The States' own revenue have not shown any appreciable improvement in the month of July, 2020 also as the decline is to an extent of 49% amounting to Rs 2,129 crores for the first 20 days of the month of July, 2019." The above extract in the judgment of the High Court is based on the submissions of the State.
(3.) By GOMs No. 26 of 31 March 2020, the State Government determined that it was necessary, as an urgent measure, to provide for a deferment of the salaries and pensions which it was obligated to pay. Consequently, paragraph 5 stipulated as follows: "5. Government, after careful consideration of the situation arising due to the COVID-19 outbreak, the economic consequences of the lock down, the cessation of the revenue inflows and extra burden imposed on the State's resources to contain the epidemic and to provide relief to the people affected/likely to be affected, hereby orders for the deferment of Salaries/Wages/Remuneration/Honorarium/Pensions on gross basis, as per the following pattern: (i) There shall be (100)% deferment in respect of Hon'ble C.M./Hon'ble Ministers/Hon'ble M.L.As/ Hon'ble M.L.Cs, Chairperson and Members of all Corporations, elected representatives of all Local Bodies and people holding equivalent posts, as per the orders issued from time to time. (ii) There shall be (60)% deferment in respect of All India Service Officers viz., IAS, IPS and IFS; (iii) There shall be (50)% deferment in respect of all other Government employees, including work-charged employees and persons engaged under the category of direct individuals professions and through 3rd party, except Class-IV Employees; (iv) There shall be (10)% deferment in respect of Class-IV, Out-sourcing, Contract and the Village and Ward Secretariat employees; (v) The deferment mentioned in respect of Para 5(i), (ii), (iii) and (iv) supra shall be made applicable mutatis-mutandis in respect of the retired employees in the respective categories. (vi) The above deferment shall be equally applicable to the serving and retired employees of all PSUs/Government aided Institutes/Organizations/ Universities/Societies/Autonomous bodies/Semi autonomous bodies, etc. in respect of their Salaries/ Wages / Honorarium / Pensions." ;