JUDGMENT

FAZAL ALI, J. (for himself and on behalf of Jaswant Singh J.):— This appeal by special leave is directed against the judgment of the Karnataka High Court dated 22nd March, 1968 and arise in the following circumstances.

2. The respondent was an employee of the Bangalore Transport Company and entered service as far back as 1954. On 28th Sept., 1956 the Bangalore Transport Service Act was passed by which the Bangalore Transport Company was taken over the the Government. Nearly a month later, that is on 1st Oct., 1956, the Company became a department of the Government and at that time the respondent was working as Junior Assistant in the grade of Rs. 75-5-100. On the reorganisation of the States on 1st Nov., 1956 various employees from other regions were transferred to the Mysore Road Transport Corporation and various units were amalgamated with the Mysore Government Transport Department. In view of the new dispensation it became necessary to bring about a radical change in the pay structure of the employees. Ultimately a settlement was arrived at and an industrial truce was signed on 10th Jan., 1958 which was to become effective from 1st April, 1957 and the respondent was plac