High Court Of Calcutta
Indira Banerjee
SWAPAN KUMAR BASU - Appellant
Versus
UNITED BANK OF INDIA - Respondent
W. P. 1579 Of 2003
Decided On : 01/12/2004
SUBSISTENCE ALLOWANCE - BANK EMPLOYEES - WEST BENGAL PAYMENT OF SUBSISTENCE ALLOWANCE ACT, 1969 - SECTION 3, 5 - SHASTRI AWARD - PARAGRAPH 557 - INDIAN BANKS ASSOCIATION CIRCULAR DATED 11TH AUGUST, 1998 - SUSPENDED BANK EMPLOYEE ENTITLED TO BENEFIT OF REVISED SALARY AND ALLOWANCES FOR COMPUTATION OF SUBSISTENCE ALLOWANCE - WEST BENGAL ACT DOES NOT PREVENT BANK FROM PAYING HIGHER SUBSISTENCE ALLOWANCE - SECTION 5 OF WEST BENGAL ACT PROTECTS RIGHTS UNDER AWARDS/BIPARTITE SETTLEMENTS WHICH ARE MORE FAVORABLE TO EMPLOYEE - DENIAL OF REVISION OF SALARY AND ALLOWANCES VIOLATIVE OF ARTICLE 14 OF THE CONSTITUTION.
Fact of the Case:
Petitioner, a suspended Chief Manager of the respondent bank, sought to have his subsistence allowance fixed on the basis of the revised salary that he would have received had he not been suspended, in terms of the Indian Banks Association circular dated 11th August, 1998.
Finding of the Court:
The court held that the petitioner was entitled to the benefit of revision of pay and allowances effected after his suspension, for the purpose of computation of his subsistence allowance, as per Paragraph 557 of the Shastri Award and the Indian Banks Association circular dated 11th August, 1998.
Issues: 1. Whether the petitioner is entitled to benefit of revision of pay and allowances effected after his suspension, for the purpose of computation of his subsistence allowance? 2. Whether the West Bengal Payment of Subsistence Allowance Act, 1969 prevents a Bank from paying a subsistence allowance higher than that provided in section 3 of the Act?
Ratio Decidendi: 1. Paragraph 557 of the Shastri Award and the Indian Banks Association circular dated 11th August, 1998 are applicable to bank employees in West Bengal, despite the existence of the West Bengal Payment of Subsistence Allowance Act, 1969. 2. Section 5 of the West Bengal Act protects rights under Awards/bipartite Settlements which are more favorable to an employee than the rights conferred under the Act. 3. The denial of revision of salary and allowances in the matter of computation of subsistence allowance to employees serving in West Bengal is patently discriminatory and violative of Article 14 of the Constitution of India.
Final Decision: The writ application was allowed, and the impugned order was set aside. The petitioner was held entitled to the benefit of the higher subsistence allowance as per the Bipartite Settlements read with the Indian Banks Association circular dated 11th August, 1998, on and from the date on which the benefit as per the Bipartite Settlements became higher by reason of wage revision.
( 1 ) THIS writ application is directed against the action of the respondents in not fixing the subsistence allowance of the petitioner on the basis of the present revised salary that the petitioner would have got had the petitioner not been suspended from service, in terms of the Indian Banks Association circular dated 11th August, 1998.
( 2 ) BY an order dated 26th August, 1987 the petitioner was suspended from service as Chief Manager of the Old Court House Street Branch of the respondent Bank.
( 3 ) AT the time of his suspension, the petitioner was getting a salary of Rs. 2. 992. 14/- per month. The subsistence allowance of the petitioner was fixed at Rs. 1,496. 14/-, being 50 per cent of the salary that the petitioner was getting at the time of his suspension. On expiry of three months from the date of suspension, the subsistence allowance was enhanced to 75% of Rs. 2,992. 14p.
( 4 ) THE petitioner has been kept under suspension for over 16 years, tt is contended that the respondent Bank has neither reviewed the order of suspension nor revised the subsistence allowance for all these years. The petitioner has not been given the benefit of salary revisions in the meanwhile.
( 5 ) THE petitioner contends that the suspension allowance of bank employees including the petitioner is governed by Paragraph 557 of the shastri Award which set out hereinbelow : "557. Having considered the matter in all its aspects, we think that suspension allowance should be granted on the following scale:- (1) For the first three months one-third of the pay and allowances which the workman would have got but for the suspension; (2) thereafter, where the enquriy is departmental by the bank, one-half of the pay and allowances for the succeeding months. Where the enquiry is by an outside agency, one-third of the pay and allowances for the next three months and thereafter one-half for the succeeding months until the enquiry is over. "
( 6 ) A reading of Paragraph 557 of the Shastri Award makes it clear that a suspended bank employee is entitled to the requisite percentage of the salary that he would have got had he not been suspended. This means that a suspended employee would get the benefit of wage revisions after his suspension as also usual increments.
( 7 ) IT appears that Indian Banks Association issued a circular being memo No. PD/cir/76/528/586 dated 11th August, 1998 the relevant portion whereof is extracted hereinbelow :"in the meeting held on 1st June, 1998 the Personnel committee reviewed its earlier decision as above in so far as it related to workmen employees under suspension and decided that the workmen employees under suspension will be eligible to be paid subsistence allowance reckoning the revised scales of pay on account of salary revision even if the date of suspension is prior to the date of salary revision which will be in line with the decision of Madhya pradesh and Haryana High Courts relating to payment of subsistence allowance to workmen employees in Banks. Cases of workmen employees, who are under suspension and in whose case salary revision has taken place, subsequent to their suspension, may be reviewed in view of the above decision and paid arrears of subsistence allowance. However, there shall be no change in the Committee's decision dated 12th September, 1989 as regards subsistence allowance payable to officers under suspension. Member banks are requested to please be guided accordingly. "
( 8 ) AGGRIEVED by the failure of respondent bank to give the petitioner the benefit of the aforesaid circular, the petitioner moved an application under Article 226 of the Constitution of India being W. P. No. 542 of 2002 in this Court.
( 9 ) THE said writ application was disposed of by a judgment and order dated 17th April, 2003, the operative portion whereof is extracted hereinbelow :"i dispose of this writ petition by directing the respondent employer to consider fixation of subsistence allowance of the pe
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