Judgement

P. JAGANMOHAN REDDY, J.: This appeal by certificate raises a question as to the interpretation and proper application of paragraph 292 of the Sastry Award (hereinafter called the Award ). The 2nd respondent was employed on 13-1-1947 as a Grade II clerk in the Imperial Bank of India on a scale of Rs.70-4-126-E.B. - 130 - 5 - 175. This Bank was subsequently taken over by the State Bank of India under the State Bank of India Act (Act XXIII of 1955). A few months after the respondent was employed he was given a pay of Rs.74 because of his proficiency in using the machine. On 13-1-1948 he earned an increment and his basic pay was Rs.78. On 1-1-1949 he was promoted to Grade I so that on the date of his promotion he was drawing a basic pay of Rs.100. On 1-1-1950 he earned an increment and his basic pay was Rs.108. The Sastry Award prescribed a uniform scale of pay for clerks of Grades I and II and gave directions to make fitments in that grade. The 2nd respondent disputed the computation of the benefits admissible to him under the Award and consequently applied for a settlement of his disputes under Section 33C(2) of the Industrial Disputes Act (XIV of 1947) which was referred to the Labour Court. The Labour Court allowed the application and fixed the basic pay of the applicant under paragraph 292 of the Award at Rs.164 per mensem as on 1-4-1954 with directions to the appellant to pay to the respondent a sum of Rs.1,647.91 for the period from 1-4-1954 to 31-12-1961. The applicant challenged the Award under Articles 226 and 227 of the Constitution but the High Court accepting the interpretation placed by the Labour Court on paragraph 292 of the Award dismissed the petition. Inasmuch as the dispute between the parties is dependent upon the view which can reasonably be taken of paragraph 292 of the Award, it will be necessary to examine the directions contained therein. We give below the relevant directions of that paragraph as amended:-

"292. Section II - For workmen who entered service of the Bank before 31st January 1950-

(1) The workman s basic pay as on 1st 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 (1) to (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, his 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 upto a limit of twelve years service; thereafter one increment for every four years of service up to another eight years service and after the one increment for every five years of service.

(4-A) 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 for 1954 on 1st April 1954. Thereafter each succeeding year s annual increment shall take effect as and from 1st April of that year.

(5) (a) Where a workman received an additional increment or increments in his basic pay either at the initial start or by way of special promotion later on, his length of service will be taken to be the period which would ordinarily be necessary to bring a workman with the usual i