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 placed in the grade of Rs. 92-8-180. At this time the designation of the post of the respondent was that of a Store Keeper. On the 8th March, 1958 the State Government after a consideration of a large number of factors published a fresh equation of posts with corresponding scales of pay. In this new dispensation the post held by the respondent came to be equated with that of an Assistant Stroe Keeper. On 26th June, 1958 the Mysore Government Road Transport Department hereinafter referred to as M. G. R. T. D. issued option forms to the employees to opt for the new scales if they so like with effect from 1st April, 1957. In consequence of this arrangement a circular No. 12 of 58 dated 26th June, 1958 was issued which may be extracted thus:-

"As per Cl. 7 of the Industrial Truce signed on 10th Jan., 1958, all employees shall have the option to come on to the new pay scales or to remain on their present pay scales with effect from 1st April, 1957.

Unit Heads are therefore instructed to inform all the employees to declare their option on the basis of the provisional equation of posts by executing the printed forms sent herewith. In case any changes are made in the final equation, the affected persons will be given the right to revise their option if they find that they are adversely affected by the changes made.

Upon the staff exercising the option the Unit Heads of Hubli, Belgaum, Bijapur and Raichur will arrange to refix the salaries of the staff in the categories mentioned in Circular Letter No. 3 of 1958. In the case of staff of B. T. S. and Bangalore Divisions, the Unit Heads will arrange to refix the pay of all staff with weightage and give effect to these from 1st July 1958. The arrears which will be due to staff on account of the refixation of pay with weightage in the case of Bangalore and B. T. S. Divisions and fixation of pay in the case of those in the categories of Ex. Hyderabad and Ex. B. S. R. T. C. mentioned in Circular 8 of 1958 will pend finalisation of equation of posts. All payments made will be provisional and subject to the necessary adjustments on the finalisation of equation of posts."

3. It is not disputed that the respondent chose to abide by this circular and exercised option in favour of the new scale and accordingly his pay was fixed at Rs. 132/- in the scale of Rs. 92-180. Thereafter, the respondent was temporarily promoted as Store Keeper and was reverted as Junior Assistant and was again temporarily promoted as Store Keeper. On 1st Aug., 1961 the appellant Corporation came into existence and on 12th Dec., 1961 a petition filed by the respondent claiming seniority as Assistant Store Keeper under the new equation over certain others was dismissed. Two years thereafter the respondent filed a petition in the High Court of Karnataka pra