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2025 Supreme(Mad) 3808

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
R. POORNIMA, J.
A. Mohamed Musthafa - Petitioner
Versus
Canara Bank, Rep. by its General Manager & Ors. - Respondents
W.P.(MD) No.17571 of 2016
Decided On : 02-01-2025


Advocates Appeared:
For the Petitioners: Mr. G. Karthik.
For the Respondents: Mr. N. Dilip Kumar.

The principles of collective bargaining and statutory provisions govern eligibility for stagnation increments, with denial valid if reversion occurs after a year of promotion.

Headnote:(A) Industrial Disputes Act, 1947 - Clauses from Bipartite Settlement dated 14.02.1995 and 25.05.2016 - Claim for stagnation increments - Petitioner, a clerk, promoted to an officer, later reverted, sought stagnation increments based on settlement clauses - Court found clause 5(c)(i) and (ii) as valid, denying increments post-reversion after one year. (Paras 2, 5, 12)

(B) Constitutional Law - Article 14 and 16 - Court held clause of Bipartite Settlement unconstitutional was not established, emphasizing collective bargaining principles. (Paras 11, 13)

(C) Delay and Laches - Petition dismissed for being belated, emphasizing prior acceptance of settlement conditions by petitioner without challenge. (Paras 12, 18)

Facts of the case:
The petitioner, after 34 years of service, sought stagnation increments post-reversion after one year, claiming discrimination under Bipartite Settlement provisions. Respondents asserted orderly procedures were followed in denying the claim due to the clauses of the settlement clearly stating eligibility criteria based on reversion timing.

Findings of Court:
Court upheld the denial of stagnation increments, stating provisions were constitutional and binding due to collective agreements, and noted procedural adherence by the bank with no demonstrated illegalities.

Issues: The legality of the provisions regarding stagnation increments post-promotion reversion and the claim of discrimination against employees reverted post one year.

Ratio Decidendi: Court ruled that agreements reached through collective bargaining must be upheld unless proven unjust; the stipulated conditions regarding stagnation increments were found reasonable and just.

Result: Writ Petition dismissed.

Table of Content
1. petitioner's claim for stagnation increments based on service record. (Para 1)
2. entitlement to stagnation increments as per bipartite settlement (Para 2)
3. arguments against the maintainability of the writ petition (Para 3 , 4 , 5 , 6 , 13 , 14 , 15)
4. constitutionality of clause 5(c)(i) & (ii) and discrimination claims (Para 7 , 8 , 9)
5. analysis of the provisions governing reversion and stagnation increments. (Para 10 , 12)
6. reaffirming the need for holistic assessment of settlement fairness. (Para 16)
7. discussion on the constitutional validity of the settlement clauses. (Para 17)
8. court's validation of the rejection of the claim (Para 18 , 19)

ORDER :

This Writ Petition is filed by the petitioner with a prayer to issue a Writ of Writ of Declaration to declare the Clause 5(c) (i) & (ii) of the 6th Bipartite Settlement dated 14.02.1995 and the consequential order dated 05.02.2016 issued by the Respondent No.4 as illegal and consequently for a direction, directing the Respondent No.4 to grant six stagnation increment to the petitioner along with other monetary benefits within the time period stipulated by this Honble Court.

2. The brief facts of the case are as follows :

(a) The writ petitioner was appointed as clerk in the respondent Bank on 16.02.1982. He rendered 34 years service in the respondent Bank without any blemish and voluntarily retired on 01.09.2016.

(b) He was promoted to the post of Probationary Officer on 16.10.2001, and later on reversion on 14.1.2003. Later reverted back to the post of Clerk on 14.01.2003. As per clause 2 of the 10th Bipartite Settlement signed by the respondent No.1 herein dated 25.05.2016, he is entitled for eight stagnation increments.

(c) That clause 2 of Bipartite Settlement by the respondent No.1 herein dated 25.05.2016, provide as follows :-

"In partial modification of Clause 5 of Bipartite Settlement dated 27th April 2010, both clerical and subordinate staff (including permanent part-time employees on scale wages) shall be eligible for eight stagnation increments w.e.f. 1st November 2012 at the rate and frequency as stated herein under: The clerical and subordinate staff including permanent part-time employees on scale wages on reaching the maximum in their respective scales of pay, shall draw eight stagnation increments at the rate of Rs.1310/- and Rs.655/- (Pro rata in respect of permanent part-time employees) each due under this settlement and at frequencies of 3 years and 2 years respectively, from the dates of reaching the maximum of their scales as aforesaid except that in the case of clerical staff, sixth, seventh and eight stagnation increments will be released two years after receipt of fifth, sixth and seventh stagnation increments respectively, provided that an employee who has completed two years or more after receiving fifth stagnation increment as on 1st November 2012 shall receive the sixth stagnation increment as on 1st November 2012. Provided further that a clerical/sub-ordinate staff (including permanent part-time employees on scale wages) already in receipt of seven stagnation increments shall be eligible for the eighth stagnation increment on 1st May 2015 or two years after receiving the seventh stagnation increment, which ever is later. In this Connection the financial benefit on account of this reduction of eligibility from 3 to 2 years for sanction of stagnation increment shall accrue on or after 01.05.2015”.

(d) In view of the above clause, he is entitled to get eight stagnation increments. But unfortunately, he was provided with only two stagnation increments and deprived of six stagnation increments without any reason. Hence, aggrieved by the same, he had sent detailed representation dated 21.01.2016 to the respondent No.4, requesting to grant him six stagnation increment on the basis of the above clause 2 of the 10th Bipartite Settlement dated 25.05.2015.

(e) But to his shock and surprise respondent No.4 issued an order dated 05.02.2016 rejecti

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