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STATE BANK OF INDIA v. M. SELVARAJ DANIEL

Citation: [1964] 3 S.C.R. 280; 1963 INSC 264

Court: Supreme Court of India

Bench: P.B. GAJENDRAGADKAR , K.N. WANCHOO, K.C. DAS GUPTA

Judgment date:

Case summary

1963 INSC 264. Supreme Court of India judgment dated 1963-12-19. STATE BANK OF INDIA v. M. SELVARAJ DANIEL. Read the judgment and case details on LawSphereX.

Judgment text

1965 M. Stfr;eraj Daniel ... Motta111111nt of ~l•le B•nk of /ndi• Dos Go;I• J, IMS 280 SUPREME COURT REPORTS [1964] VOL. entitled to Rs. 146/- plus dearness allowance as the benefit to ". Vhich he is entitle~ under the Sastry Award but which has not been paid . The Labour Court was, therefore, wrong m rejecting the appellant's petition. We allow the appeal, set aside the order of the La~our - 3 S. C. R. SUPREME COURT REPORTS 285 on those scales of pay. It has to be mentioned that the appointment letter is not on the record. We are therefore still inclined to think that the appellant Daniel was appointed by the Bank on December 14, 1953 on the pay scale as fixed by the Sastry Tribunal. In any case, the Bank has not been able to satisfy us that any error was made in dispos· ing of the appeal on the basis that Daniel's appoint· ment wa~ on the pay scale a8 fixed by the Sastry Award. This is sufficient to dispose of the review application.

As, however, arguments were addressed to us in this application as to what the position would be if the appellant had not been appointed on the pay scale as fixed by the Sastry Award and his pay had to be adjusted in accordance with the provisions of para. 292, we propose to give our decision on that point as well. The question of adjustment to the new pay 'scales formed a distiuct item -Item No. 12-in the Governm,,nt Order making the reference to the Sastry Tribunal. This was dealt with in Chapter XIII of the award in four sections. Section I sets out the different contentions raised by the employer and the workmen's Counsel. Thus, after mentioning that the employees generally asked for point to point adjust· ment, i. e. , placing of each employee at that stage in the new scale to which he would have risen by reason of the length of his service if he had entered service on the new scale, the Tribunal stated that for the reasons given in paras.

113 to 117 of the Sen Award it agreed with the conclusion of the Sen Tribunal that a compromise between the two methods advocated by the parties should be adopted. After a general discussion of the arguments in paras. 285 to 291, the Tribunal proceeded to give concrete direc- tions in para. 292 dealing with the matter in six 1963 Stal1 B~nk of lndi::J •• Af. S1lunaj Daniel 1963 Stat1 Bnnk of India •• M. Sellxuaj Doniel Das Gupta J, 286 SUPREME COURT REPORTS [1964] VOL. sub-paragraphs, as regards workmen who entered the service of the Bank before January 31, 1950; one sub. para. was as regards workmen who joined service of the bank after January 31, 1950; seven more sub- paras. -sub-paras. 8 to 14 laid down general. rules applicable to all workmen whether appointed before or after January 31, 1950.

· This scheme of adjustment was maintained by the Appellate Tribunal with the modification that '31st January 1953' in the Award was substituted by ·~Ist January 1954' and 'lst April, 1953' was substi- tuted by the words 'lst April, 1954'. Clause (d) of sub para. 4 was deleted and in its place sub-para 4 (A) was substituted which ran thus:- " After adjustments are made in accordance with the directions given, three further annual increments in the new scale will be added thereto for service for the three years 1951 to 1953. In addition, the workmen will be entitled to draw his normal increment for 1954 on the 1st of April 1954. Thereafter, each suc- ceeding year's annual increment shall take effect as and from the lst April of that year. " For workmen appointed before January 31, 19Fi0 there was thus a defir,ite direction that succee- ding year's annual increment shall take effect from April l, of that year.

Sub-paragraph 7 dealing with the workmen who joined service after January 31, 1950 runs thus:- "The workmtn shall be fitted into the new scale of pay on a point to point basis as though it had been in force since he joined the service of the Bank, provided that his adjusted basic pay is not less than what it would be under a point to point adjustment on the corresponding ''pre- Sen" scale. " • ... .. 3 S. C. R. SUPREME COURT REPORTS 2817 It is important to notice that in this provision as regards the workmen who joined service of the Bank after January :n, 1950, rio direction has been given as regards the date from which annual incre- ments should take effect. Nor can we find anything in the remaining seven sub·paras. laying down generally the rules, any directions whatsoever to justify the plea that the future increments of work- men who joined service of the Bank after January 31, 1950, would start from April l, of the year.

'1 he provision in para 12 that the adjusted pay shall have effect from April l, 1954 has nothing to do with the commencement of future increments. The reason why such a direction was given as regards the workmen who entered the service of the Bank before January 31, 1950 and none was given as regards workmen who joined after that date appears to be clear. For workmen who entered the service of the Bank before January . 31, 1950 detailed provisions for fitting them into the scales were made including the provisions for increments. It was in view of this apparently that it was thought necessary to indicate the time from which further increments would commence. As the Tribunal brought the new scales into force with effect from 1953 the direction that logically followed was that each succeeding year's annual increment would take effect as and from April _ l, of that year. The Appellate Tribunal decided to adjust the pay up to April I, 1954 instead ·Of April l, 1953.

But that did not change the fogical position that each succeeding year's increment wou Id take effect as and from April l of that year. The above considerations had no application to the ·workmen who were directed to be fitted into the new scale of pay on a point to point basis as though it had been in force since they joined the service of the Bank. On the basis that the new scale was in force at the date when the workmen 1909 State Banlc of India y, M. S~lvt'aj Danid D1ir GuPt• J, 196S Slate Bank of lndi• v. M. Sdaaraj Danl1l Das Gopt• J. 288 SUPREME COURT REPORTS [1964] VOL. ' joined the service of the Bank there can be no e! lcape from the conclusion that the increments as provided in that scale would take effect from the anniver- sary of the date of appointment. It is unnecessary for us to consider here why the workmen who joined the service of the Bank .

after January 31, 1950, were not being given incre- ments in the same way as those who had entered the · service before that date. Some indication is given in the Tribunal's observations that it would be pro- per to let bygones be bygones and there should be neither retrospective adjustment of pay or aHowances actually paid nor further claims for more than what has been given already. Whatever the reason be the fact remains that special directions were given as regards the adjustment into the pay scale of the workmen who had joined the service of the Bank after January, 1950, and in their case nothing was said as to the date · from which future increments would take effect. The necessary and inevitable consequence of the absence of any such direction in the matter is, as we have already indicated, that · futu·re increments would be on that date of the year when the workman was appointed.

We have thus reached the conclusion that even on application of the rules of adjustment into the new scale on the. assumption that such adjustmenf was necessary, the appellant-workman would be entitled to the relief he had asked for. The application is accordingly dismissed with . costs. ... __ lleview applicatioo dismiBBM.

Source: Supreme Court eSCR. Dataset: Dattam Labs, CC BY 4.0. Text extracted automatically; compare with the source PDF for layout and accuracy.