Case: State Bank of India Vs. The Presiding Officer, Central Government Labour Court, Dhanbad and Anr

by Government is not likely to affect a very large number of employees. On the merits, it seems to me that much can be said in favour of the view taken by the Labour Appellate Tribunal. If, in adjusting employees in the new wage structure, they are entitled to have their previous service taken into account, it is difficult to appreciate why a line should be drawn at the end of twelve years service and it should be held that an employee would not be entitled to claim any credit for any period of service beyond the said line. The modification made by Government confirms the provisions made by the Sastry Tribunal, and these provisions, as I have just indicated, allow certain increments in lieu of twelve years service. If fairplay and equity. Justify these provisions, it would seem to follow that the same considerations would justify the additional provisions that have been made by the Labour Appellate Tribunal decision. On the merits, therefore, I am inclined to agree with the view taken by the Labour Appellate Tribunal".10. It would appear clear from the above recommendation that What the Award meant in clause (2) when it referred to point- to-point adjustment is the placing. of each employee at the stage in the new scale to which he would have risen by reason of the length of service had he entered service in the new scale. What was sought to be ensured by clause (2) was that the adjusted basic pay in the new scale shall not exceed the point-to-point adjustment or the maximum of the scale. If the meaning given to the phrase point-to-point adjustment, is what is stated by the Commission in the report, then there, would be no impediment in giving effect to the directions in clause (4) (b). It would not therefore, be right to say that clause (4) (b) is to be ignored Or that the advantage ends only with that given in clause (4) (a).11. The next question is what is it that clause (5) (a) Provides for ? Does it provide for computing the length of service for the purposes of giving One increment for every three Years of notional service worked out on the basis of the service that would be required for a workman to Mach the basic pay which lie was drawing in the existing scale ? The contention of the 2nd respondent is sat taking the basic pay drawn by him as on 31st January 1950 to the nearest integer the length of service should be computed on the basis of the number of years which he would have to serve in the junior scale to draw that amount of basic pay. It appears to us on a careful examination of the terms of clause (5) (a) that the directions in this clause are inapplicable to him. Clause (5) (a) provides for only the, cases of those who start on a higher initial basic pay by getting additional increments or are, given advance increments in any scale whether junior or senior. In such contingencies how the length of service for the purposes of clause (4) (b) is to be computed was provided for in clause (5) (b). The directions given in that clause are that the length of service in the scale in which he is and in which he got an increment or increments either at the initial start or by special promotion should be that which he would have taken to reach the basic pay which he would draw on 31st January 1950 with the initial start. The condition precedent to the applicability of the directions in this clause is the receipt of increments or increment by way of special promotion. An increment is in the same scale while a promotion is from one scale to a higher scale. A promotion from a lower grade to a higher grade though both the grades may be in the same cadre is not an increment or increments by way of special promotion. The use of the word special would itself show that what is contemplated is advance increments in the same grade. What is sought to be taken into account by the Award is the actual service of the workman or where he has been given increments in the same scale he is sought to be compensated by giving him a corresponding advantage in the new scale. This is sought to be effected by taking into account the increment or increments earned in the cadre in computing the length of service under clause (4) (b). As the 2nd respondent did not get any increment or increments in the existing scale which was Grade I either at the initial start or by way of special promotion, the actual service in the cadre has to be computed for the purposes of clause (4) (b). The words same cadre in that clause as explained earlier would refer to both Grade IT and Grade 1. The actual service in both the grades will alone be considered for giving him an increment for every three years of service which in his case works out to one increment in respect of his 3 years. service: from 13 -1-47 to 31-1-50. Even if the initial. increment of Rs. 4/- in Grade II which was given to him for being proficient in the working of a machine is taken into account under clause: (5) (b) that would add one more year to the three years of actual service rendered .by him but that does, not give him any further advantage. He will, only be entitled to one increment under clause (4) (b). In the result we. hold that the 2nd respondent has to be fitted in the new scale on a basic pay of Rs. 148/- and on that basis the emoluments to which he would be entitled will have to be worked out. We accordingly direct the Labour Court to give the necessary direction in this regard.12.

Decision (1 = appeal accepted, 0 = rejected): 1

Explanation:
1[ds]The contention of the 2nd respondent is sat taking the basic pay drawn by him as on 31st January 1950 to the nearest integer the length of service should be computed on the basis of the number of years which he would have to serve in the junior scale to draw that amount of basic pay. It appears to us on a careful examination of the terms of clause (5) (a) that the directions in this clause are inapplicable to him. Clause (5) (a) provides for only the, cases of those who start on a higher initial basic pay by getting additional increments or are, given advance increments in any scale whether junior or senior. In such contingencies how the length of service for the purposes of clause (4) (b) is to be computed was provided for in clause (5) (b). The directions given in that clause are that the length of service in the scale in which he is and in which he got an increment or increments either at the initial start or by special promotion should be that which he would have taken to reach the basic pay which he would draw on 31st January 1950 with the initial start. The condition precedent to the applicability of the directions in this clause is the receipt of increments or increment by way of special promotion. An increment is in the same scale while a promotion is from one scale to a higher scale. A promotion from a lower grade to a higher grade though both the grades may be in the same cadre is not an increment or increments by way of special promotion. The use of the word special would itself show that what is contemplated is advance increments in the same grade. What is sought to be taken into account by the Award is the actual service of the workman or where he has been given increments in the same scale he is sought to be compensated by giving him a corresponding advantage in the new scale. This is sought to be effected by taking into account the increment or increments earned in the cadre in computing the length of service under clause (4) (b). As the 2nd respondent did not get any increment or increments in the existing scale which was Grade I either at the initial start or by way of special promotion, the actual service in the cadre has to be computed for the purposes of clause (4) (b). The words same cadre in that clause as explained earlier would refer to both Grade IT and Grade 1. The actual service in both the grades will alone be considered for giving him an increment for every three years of service which in his case works out to one increment in respect of his 3 years. service: from 13 -1-47 to 31-1-50. Even if the initial. increment of Rs. 4/- in Grade II which was given to him for being proficient in the working of a machine is taken into account under clause: (5) (b) that would add one more year to the three years of actual service rendered .by him but that does, not give him any further advantage. He will, only be entitled to one increment under clause (4) (b). In the result we. hold that the 2nd respondent has to be fitted in the new scale on a basic pay of Rs. 148/- and on that basis the emoluments to which he would be entitled will have to be worked out. We accordingly direct the Labour Court to give the necessary direction in this regard.