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1973 Supreme(SC) 236

SUPREME COURT OF INDIA
P. JAGANMOHAN REDDY AND S.N. DWIVEDI, JJ.
Mysore State Road Transport Corporation, Bangalore, Appellant
Versus
S. K Athani and another, Respondents.
Civil Appeals Nos. 1534 and 1910 to 1958 of 1971, D/- 8-8-1973.
Civil Appeal No. 1534 of 1971.
Civil Appeals Nos. 1910 to 1958 of 1971.
Advocates appeared
Mysore State Road Transport Corporation, Bangalore, Appellant v. Presiding Officer, Labour Court, Hubli and another etc., Respondents.

Headnote:

Industrial Disputes Act, 1947 – Section 33-C (2) and 16 (1) - Constitution of India, 1950 - Article 226 - Transport Corporation - Employees - Draw Dearness Allowance - Employees of Mysore State Road Transport Corporation are divisible into three classes Mysore employees, Bombay employees, Hyderabad employees - Employer and employees concluded an agreement in respect of certain terms and conditions of service –Dearness allowance was fixed on a graduated scale - It appears that Bombay and Hyderabad employees were getting a higher dearness allowance which was an accident of reorganisation of States - Accordingly proviso (a) to cl. 5 provided that they would be entitled to continue to draw dearness allowance at rates which were applicable to them - Held, High Court has also pointed out that all employees of appellant, irrespective of places from which they come, are entitled to an identical rate of dearness allowance from January 1, l965 – Court is unable to appreciate what bearing this aspect would have on construction of first part of cl. 16 (1) - However, it may be pointed out that Hyderabad and Bombay employees were getting higher dearness allowance than Mysore employees - Increased dearness allowance given to Mysore employees from January 1960 to April 1964 seems to have equalised dearness allowance of all employees and that seems to be reason why from January, 1965 all employees are given an identical rate of dearness allowance – Court is of opinion that Labour Court was clearly wrong in its interpretation of first part of cl. 16(1) - Its order is vitiated by an error apparent on face of record - Writ petitions are allowed and orders of Labour Court are quashed - Appeals allowed.

Judgment

DWIVEDI, J.:- All these appeals raise a common question of law and are being disposed of by a common judgment.

2. The employees of the Mysore State Road Transport Corporation are divisible into three classes: (1) the employees of the erstwhile Road Transport Department of the State of Mysore (hereinafter called the Mysore employees) (2) the employees of the Bombay Road Transport Corporation who were working within such districts of the State of Bombay as were integrated with the State of Mysore (hereinafter called the Bombay employees), and (3) the employees of the Road Transport Department of Hyderabad working in such areas as were integrated with the State of Mysore (hereinafter called the Hyderabad employees). The employer and the employees concluded an agreement on January 10, 1958 in respect of certain terms and conditions of service. The agreement was made operative from April 1, 1957. Clause 5 of the agreement dealt with the dearness allowance payable to the employees. The dearness allowance was fixed on a graduated scale. It appears that the Bombay and Hyderabad employees were getting a higher dearness allowance which was an accident of the reorganisation of States. Accordingly proviso (a) to cl. 5 provided that they would be entitled to continue to draw dearness allowance at the rates which were applicable to them on November 1, 1956 and January 1, 1957 respectively. The agreement was to remain effective till March 31, 1960. On February 10, 1962 there was another agreement between the two parties. It was made effective from April 4, 1960 and was to continue until March 31 1965. Clause 4 dealt with dearness allowance. The allowance was increased by Rs. 5/- in respect of all the employees except those who were getting pay between Rs. 301 and Rs. 500 per month. Proviso (a) to cl. 4 was similar to proviso (a) to cl. 5. of the earlier agreement. A third agreement was concluded on March 20, 1965. This agreement came into force on April 1, 1965. Clause 15 provided for dearness allowance payable from January 1, 1965. The marginal note to cl. 16 (1) is revision of pay scales . The parties construed the first part of this clause differently and hence the litigation culminating in these appeals. The text of the clause will be set out later after we have noticed certain orders issued by the employer between 1960 and 1964.

3. The first order was issued on March 22, 1960. This order fixed the rate of dearness allowance of the employees with effect from January 1, 1960. Broadly speaking, it increased the dearness allowance of the Mysore employees by Rs. 5/-. There was another increase of Rs. 5/- in dearness allowance with effect from January 1, 1961. The order increasing the amount stated that the increased dearness allowance would be payable to the Mysore employees as well as to the Bombay and Hyderabad employees provided they opted for the Mysore rates of dearness allowance. There was a further increase of Rs. 5/- in dearness allowance with effect from April 1, 1963. But the Bombay and Hyderabad employees could avail this addition only if they opted for the Mysore rates of dearness allowance. The last increase in the dearness allowance was given with effect from April I, l964. The amount of dearness allowance was increased by Rs. 5/-. The Bombay and Hyderabad employees could avail this increase only on their opting for the Mysore rates of dearness allowance. An interim relief of Rs. 5/- per month was also granted to the employees with effect from April 1, 1964. This interim relief was not subject to option. Consequently, the Bombay and Hyderabad employees also were benefited by it.

4. Clause 16 (1) of the agreement of March 20, l965 relevantly reads:

"The pay-scales of the Corporation employees not having been revised since the first Truce Agreement of 10-1-1958, the employees have been given interim relief as well as increased Dearness Allowance benefits as follows:

Date Amount

Dearness Allowance 1-1-1960 Rs. 5/- p.m. (minimu
















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