Judgment

AHMADI, J.- The appellants joined the clerical cadre of the respondent-bank against the posts reserved for Scheduled Caste/Scheduled Tribe candidates sometime between 1974 and 1977. As the bank felt the paucity of finding Scheduled Caste and Scheduled Tribe members to man its managerial cadres, it issued a Circular No. 386 dated May 30, 1978 inviting Scheduled Caste/Scheduled Tribe employees working in the clerical cadres to appear at the test for selection of Management Trainees. In response to this circular the appellants appeared at the test and were selected as Management Trainees, intimation whereof was conveyed to them by the letter dated October 30, 1978. While giving the intimation of their selection as Management Trainees, the said letter conveyed the terms and conditions which would apply to them. The relevant terms and conditions with which we are concerned have been set out in paragraph 1 as under:

"Pay & Allowances: Your pay and allowances will be as under:

First Year : Consolidated emoluments of Rs 700 p.m. -

Second Year : Total emoluments payable to an officer placed in C Grade at its initial stage i.e. Rs 700 basic p.m. plus other allowances admissible under the rules.

Third Year : You will draw a basic pay of Rs 760 p.m. in the pay scale of Rs 700-30-790-35-930-40-1050 EB-40-1090-45-1315 provided you have passed banks confirmation test. However, in the event of your failure to pass banks confirmation test, you will continue to draw the same salary as in the second year of your service i.e. Rs 700 basic pay plus other allowances.

The commencement of the second year and third year of service would be extended by the period of leave availed without pay.

You will be considered for confirmation/promotion subject to your qualifying banks confirmation test, passing Part I of Institute of Bankers Examination and satisfactory performance during training/probation."

It was clearly indicated in the said letter that the selected candidates will be on training for two years and would be considered for confirmation thereafter on their (a) getting satisfactory report about their training, (b) passing banks confirmation test, and (c) passing Part I of the Indian Institute of Bankers Examination. They were not to be considered for promotion until confirmation. These were the broad terms on which the appellants were selected as Management Trainees. It would be seen from the above terms that for the first year they were to receive consolidated emoluments of Rs 700 per month and in the second year they were to be paid total emoluments admissible to a C Grade Officer at the basic or initial stage of Rs 700 and certain allowances admissible under the Rules. In other words although they were to be placed in the time scale of Grade C at the basic minimum of the scale and were to be entitled to certain admissible allowances, they were not to be allowed the scale and annual increments till they entered the third year of training when they were to be placed in the time scale and granted two advance increments i.e. they were to begin at the basic salary of Rs 760 per month provided they successfully cleared the confirmation test. Now pursuant to their selection they commenced the training w.e.f. November 13, 1978. They were, therefore, entitled to consolidated emoluments of Rs 700 per month from November 13, 1978 to November 12, 1979; total emoluments admissible to an officer placed in C grade at the minimum of the scale plus admissible allowances from November 13, 1979 to November 12, 1980 and on their successful clearance of the confirmation test they would have been placed in the regular scale of Rs 700-1315 at the basic of Rs 760 from November 13, 1980 and onwards. These were the terms on which they were selected as Management Trainees. 2. By a resolution dated July 19, 1973 the Government of India had appointed a Committee consisting of five members with Professor V.R. Pillai as its Chairman to standardise the pay scales, allowance