Mukundakam Sharma, C.J.

1. The issue that is involved in the present appeal is whether or not the respondent is entitled to stagnation increment as envisaged in the Fifth Bipartite Settlement dated 10th April, 1989.

2. The respondent was appointed in the erstwhile Laxmi Commercial Bank Limited as Clerk on 4th September, 1972. He was promoted as Head Clerk on 11th November, 1980 and then as Special Assistant on 11th November, 1981. Thereafter, the respondent was promoted to the Officer cadre on 7th January, 1983. Subsequent thereto, the erstwhile Laxmi Commercial Bank Limited was merged with the appellant-Canara Bank with effect from 24th August, 1985 in terms of an amalgamation scheme framed by the Central Government in consultation with the Reserve Bank of India. Consequently, effective from 24th August, 1985 the respondent became an officer employee of the appellant-bank. The respondent after the aforesaid amalgamation was transferred to Sikanderabad Branch of the appellant-bank on 10th September, 1986 not only in terms of the transfer policy of the Bank but also in tune with the RBI Guidelines for giving rotation in posting from time to time and also on the ground of ad