Judicial Analysis Court Copy Headnote Facts Arguments Court observation

1961 Supreme(SC) 296

SUPREME COURT OF INDIA
29th August, 1961
P.B. GAJENDRAGADKAR, K.N. WANCHOO AND K.C. DAS GUPTA, JJ.
State Bank of India, Appellant
Versus
Parkash Chand Mehra, Respondent.
Civil Appeal No.100 of 1961.
Advocates appeared
Mr. H. N. Sanyal, Addl. Solicitor-General of India and Mr. N. C, Chatterjee Senior Advocate, (M s. Vidya Sagar, H.L. Anand and K, Baldeva Mehta, Advocates, with them), for Appellant; M/s. M. K. Ramamurthi and D. P. Singh, Advocates of M/s Ramamurti and Co., for Respondent.

Advocates:
D.P.Singh, H.L.Anand, H.N.SANYAL, K.B.MEHTA, M.K.RAMAMURTHI, N.C.CHATTERJI, RAMAMURTHI, VIDYA SAGAR NAYYAR

The interpretation of the clauses of the Bank Award, particularly Rules 1, 2, 4(a), and 4(b), and their application in determining the respondent's salary upon transfer from Abohar to Amritsar.

Headnote:
BANK AWARD - ADJUSTMENT OF BASIC PAY - S. 33(B) INDUSTRIAL DISPUTES ACT, 1947 - INTERPRETATION OF CLAUSES OF BANK AWARD - EFFECT OF PARA 292 OF BANK AWARD ON RESPONDENT.
Fact of the Case:

The respondent, an employee of the State Bank of India, was transferred from Abohar, a class IV area, to Amritsar, a class II area. The dispute arose over the fixation of his salary in Amritsar, with the respondent claiming entitlement to three increments over his salary in Abohar, while the Bank fixed his salary at Rs. 133 per month.
Finding of the Court:

The court held that the respondent's basic pay should have been fixed at Rs. 90 per month, subject to the limitation of Rule 2 of the Bank Award, which restricted the basic pay to the amount that would be obtained through point-to-point adjustment or the maximum in the new scale. As a result, the respondent's salary at the time of transfer was Rs. 112, and on transfer to Amritsar, he was entitled to three increments, bringing his salary to Rs. 133 per month.
Issues: 1. Whether the respondent was entitled to three increments over his salary in Abohar, as claimed by him. 2. Whether the Bank correctly fixed the respondent's salary at Rs. 133 per month on his transfer to Amritsar.
Ratio Decidendi: The court interpreted the clauses of the Bank Award, particularly Rules 1, 2, 4(a), and 4(b), and held that the respondent's basic pay should be fixed in accordance with Rule 4(a), subject to the limitation of Rule 2. The court found that the respondent's basic pay was Rs. 90, and with two increments under Rule 4(b), his salary would be Rs. 100. However, due to the limitation of Rule 2, the basic pay was capped at Rs. 90, resulting in a salary of Rs. 112 at the time of transfer. On transfer to Amritsar, the respondent was entitled to three increments, bringing his salary to Rs. 133 per month.
Final Decision: The court allowed the appeal filed by the State Bank of India and set aside the award made by the Labour Court. The respondent was granted costs of the appeal in accordance with the order made by the court on January 30, 1961.

Judgment

DAS GUPTA, J. : The only question that arises for consideration in this appeal by the State Bank of India is as regards the effect of Para 292 of the Bank Award, as modified, on the respondent Parkash Chand Mehra. This respondent entered the Bank s service on February 20, 1943 it was then the Imperial Bank of India. On January 31, 1950 he was getting a salary of Rs.86 per month. On April 1,1954 he was employed at the Abohar Branch of the Imperial Bank ; and on May 15, 1954 he was transferred to Amritsar under the classification in the Bank Award, Abohar was a class IV area while Amritsar was a class II area. On the basis that Abohar was a class IV area the respondent s salary was fixed by the Bank on April 1, 1954 at Rs.112 per month; and on transfer to Amritsar- a class II area, in consideration of his length of service, he was given three increments and his salary was fixed at Rs. 133 per month. The Respondent s case is that he was entitled to three increments over Rs. 126 which it is said he was drawing at Abohar, that is Rs.148 per month. As this claim was rejected by the Bank authorities he made as application under Ss.33 (b) determining the money payable under the Award. The Labour Court, Delhi accepted the respondents case that his pay should have been fixed at Rs.148 per month.

2. To determine the correctness of the Tribunal decision it is necessary first to see what the respondents pay would be at Abohar, on the basis that Abohar was a class IV area at the time of his transfer to Amirtsar, and what his salary would be under the modified Award at Amirtsar. We have to ascertain then, first the basic pay on January 31, 1950. The clauses of the Award which require consideration may be set out here conveniently :-

(1) The workmen s basic pay as on 31st January, 1950, shall not be reduced in any case.

(2) subject to rule (1) the adjusted basic pay in the new scale shall not exceed what point to point adjustment would give him or the maximum in the new scale.

(3) In the matter of adjustment all efficiency bars, whether in the previously existing scales or in the new scales fixed by the award should be ignored.

(4) subject to rules (I) and (3) a workman s basic pay in the new scale shall be fixed in the following manner :-

(a) A workman shall first be fitted into the scale of pay fixed by the said award, (hereinafter called the new scale) by placing him at the stage in the new scale equal to, or next above, is basic pay as on 31st January, 1950 in the present scale then in force (herein called the existing scale).

(b) To the basic pay into which he is fitted under clause (a)the annual increment or increments in the new scale as from that stage onwards should be added at the rate of one increment for every completed three years of service in the same cadre as on 31st January 1950, up to a limit of twelve years service; thereafter one increment for every four years of service upto another eight years service, and after at one increment for every five years of service.

(4A) 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 workman will be entitled to draw his normal increment for1954 on the l st of April, 1954. Thereafter each succeeding year s annual increment shall take effect as and from the l st April of that year."

3. We have therefore first to fix the basic pay in accordance with Rule 4(a), and then a low annual increments in accordance with R. 4(b). But this is subject to Rules 1 and 2 above. We are unable to accept the contention raised on behalf of the respondent that the words "subject to" have not the effect of making what would otherwise follow from the application of Rules 4(a) and (b) subject to both the limits laid down in R. 2. Giving as we must, natural meaning to the words used in Rules 2 and 4, we are of opinion that in no case can the basic pay be fixed at a

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