( 1. ) THE petitioners were employed as Supervisors (Electrical) in the construction section of the Bhilai Steel Plant when it was a departmental undertaking of the Government of India. Even after taking over of the Plant by the Hindusthan Steel Private Limited, which is a Government Company incorporated under the Companies Act, the petitioners continued in the construction section. In July 1966, both the petitioners were working as Construction Assistants, Grade I, in the pay scale of Rs. 350-575. Both the petitioners were offered employment as Charge men in the grade of Rs. 325-15-475 on the operation side on terms and conditions contained in the managements letter dated 6th July 1966. The petitioners accepted the offer and joined as Charge-men in July 1966. On the date of joining as Charge man, petitioner No. 1 was drawing a basic salary of Rs. 410 per month, while petitioner No. 2 was drawing a basic salary of Rs. 500 per month. During the period of probation as charge men, the petitioners continued to draw the said emoluments but after they completed the period of probation, their basic salary was brought to the minimum of the scale of Rs. 325-15-475. This was done in accordance with the terms and conditions on which the posts of Charge men on the operation side were offered to the petitioners.

( 2. ) THE petitioners first grievance is that the reduction in their basic salary was illegal as it was done without giving any notice of change under section 31 (1) of the Madhya Pradesh Industrial Relations Act, 1960. The other grievance of the petitioners is about the reduction of their leave benefits. The petitioners claim is that as they were originally Government servants, they are entitled to leave benefits under the Fundamental Rules and other rules, and that the Standing Orders framed under the provisions of the Industrial employment (Standing Orders) Act, 1946, in the year 1963, are not applicable to them.

( 3. ) BEFORE proceeding further, it is necessary to refer to certain provisions of the Madhya Pradesh Industrial Relations Act, 1960. The word "employee" as defined in section 2 (13) means any person employed in an industry to do any skilled, unskilled, manual, supervisory, technical or clerical work for hire or reward, whether the terms of employment be express or implied. It, however, does not include a person employed in a supervisory or technical capacity drawing wages exceeding Rs 500 per month. The definition of "wages" is contained in section 2 (35) and it is as follows:

"2 (35) "wages" means remuneration of all kinds capable of being expressed in terms of money and payable to the employee in respect of his employment of work done in such employment and includes- (i) any bonus, allowance (including dearness allowance), reward or additional remuneration; (ii) the value of any house accommodation, light, water, medical attendance or any other amenity or service; (iii) any wages payable for the period of leave; (iv) any compensation payable for lay-off or retrenchment; (v) any contribution by the employer to any social security scheme, pension or provident fund; (vi) any gratuity payable on discharge; (vii) any travelling allowance or value of any travelling concession; (viii) any sum paid or payable to or on behalf of an employer to defray special expense entailed on him by the nature of his employment; and (ix) any amount payable to an employee under any law for the time being in force for the protection of rights of employees or for regulating their relations with the employers, or under any award, settlement or agreement. "

Section 31, which requires a notice of change, is as under :

"31. Notice of change.- (1) An employer intending to effect any change in respect of an industrial matter specified in Schedule I shall give notice of such intention in the prescribed form and manner to the representative of employees and to such other persons as may be prescribed. (2) A representative of employees desiring a