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 th