As per Clause 5 of the terms of settlement agreement, it was agreed that the Dearness Allowance rates will be revised twice in a year i.e. on 1st January and on 1st July taking into account the variations in the previous twelve months average of the All India Consumer Price Index numbers, adopting the same formula as followed by the State Government.
On 20.03.2002, the Government of India enhanced the Dearness Allowance for the Central Government employees from 45 to 49 w.e.f.
The State Government faced acute financial crisis during the period 2001 2002 due to which, Government of Tamil Nadu was paying Dearness Allowance at the rate of 45 on that date to its employees.
It is pertinent to numbere that in the subsequent wage settlement entered into between the appellant Board and the respondent union on 15.10.2005 w.e.f.
On 21.10.2002, the Government of TN issued G.O. Ms.No.346 revising the Dearness Allowance from 45 to 49 w.e.f.
On 27.06.2003, the State Government issued G.O. No.215 revising the Dearness Allowance from 49 to 52 w.e.f.
As pointed out earlier, Chairman of the Board rejected the respondent CITUs representation on 13.09.2002 stating that as per the settlement dated 08.07.1998 followed by Board Proceedings BP FB No.58 dated 18.07.1998, Dearness Allowance would be sanctioned to the employees of the Board as granted by the State Government to their employees at the same rate and from the same date.
On 18.07.1998, orders were issued by the Board in Board Proceedings BP FB No.58 in accordance with the terms of the provisions of the settlement dated 08.07.1998 stating that the revised Dearness Allowance would be sanctioned to the employees of the Board as granted by the State Government to their employees at the same rate and from the same date.
01.07.2002.
Accordingly, the appellant Board also followed the same rate i.e. 45 as paid by the State Government on the said date.
01.01.2002 on par with the Central Government employees.
On 07.05.2002 and 12.07.2002, the respondent CITU submitted representations to the Board.
01.01.2002 to 30.06.2002 and at the rate of 52 of the basic pay w.e.f.
01.01.2002 to 30.09.2002.
The Government of Tamil Nadu subsequently vide G.O.Ms.
The appeal preferred by the appellant Board also came to be dismissed with the direction that the appellant Board was liable to pay Dearness Allowance at the revised rate w.e.f.
Due to extremely difficult financial position which the State Government was facing, the State Government was paying the Dearness Allowance at the rate of 45 on the said date without enhancing it to 49.
The Board Proceeding BP FB No.58 dated 18.07.1998 stipulated that the revised Dearness Allowance would be sanctioned to the employees of the Board as granted by the State Government to their employees at the same rate and from the same date.
While rejecting CITUs representation, it was made clear that the State Government had number issued any order revising Dearness Allowance at the rate of 49 w.e.f.
01.01.2002.
01.07.2002 respectively.
The appellant Board also adopted G.O. Ms. No.346 dated 21.10.2002 and issued orders in BP FB No.58 dated 29.10.2002 revising the Dearness Allowance to 49 from 01.10.2002 to its employees on par with the State Government employees.
The Dearness Allowance rates will be revised twice in a year on 1 st January and 1st July taking into account the variations in the previous twelve months average of the All India Consumer Price Index numbers, adopting the same formula as followed by the State Government.
The terms of settlement also dealt with the payment of Dearness Allowance.
01.07.2003.
01.12.2002 stipulates the existing practice of sanction of Dearness Allowance to the employees of the Board as granted by the State Government to their employees at the same rate and from the same date.
In the settlement dated 08.07.1998 recorded under Section 18 1 of the Industrial Disputes Act, 1947 between the appellant Board and the respondent CITU, Clause 5 of the settlement deals with Dearness Allowance which reads as under Dearness Allowance The revised rates of Dearness Allowance for various pay ranges will be as indicated in Annexure III.
The Settlement companyered about eighty thousand employees of the Board in Class III and IV service and it was for a period of four years from 01.12.1996 to 30.11.2000.
Para 3 of the said G.O. reads as under In view of the extremely difficult financial position faced by the Government, the Government after having discussions with the Tamil Nadu Government Officers Union, Tamil Nadu Arasu Aluvalarkazhagam CD Group and Tamil Nadu Secretariat Association, has decided to sanction one additional instalment of Dearness Allowances at 4 to the employees of the State with effect from 01.10.2002.
The respondent s union having agreed that the revised Dearness Allowance will be sanctioned as granted by the State Government to their employees, the appellant Board has been companysistently adopting the revised rates of Dearness Allowance following various State Government orders.
01.01.2002.
In pursuance of the said settlement, order dated 18.07.1998 was issued by the appellant Board in Board Proceedings BP FB No.58 wherein, it was inter alia provided that the revised Dearness Allowance would be sanctioned to the employees of the Board as granted by the State Government to their employees at the same rate and from the same date.
When the settlement dated 08.07.1998 between the appellant and the unions has been followed by the Board stipulating that the revision of Dearness Allowance would be on par with the rate sanctioned by the State Government to its employees, in deviation therefrom, whether the respondents are right in insisting upon revision of Dearness Allowance at the abovesaid rates?
Having agreed for the grant of revised Dearness Allowance on par with the State Government employees, the respondent s union cannot seek for revision in Dearness Allowance at a higher rate than what was granted by the State Government to its employees.
We have carefully companysidered the submissions and perused the impugned judgment and materials on record.
01.10.2002 and thus followed the terms of the settlement dated 08.07.1998 followed by the Board Proceedings BP FB No.58 dated 18.07.1998.
The appellant Board is number bound to adopt the revised rate of Central Government, when the settlement prescribes the formula to be adopted from the rates of the State Government.
The appellant Board also followed the same rate of DA at 45.
The subsequent settlement also reiterates that all along the revision of Dearness Allowance to the employees of the Board was on par with the employees of the State Government.
The increases in Dearness Allowance which fell due w.e.f.
The Government of India, Ministry of Finance, Expenditure Department vide Office Memorandum dated 20.03.2002 enhanced the Dearness Allowance payable to Central Government employees from the existing rate of 45 to 49 w.e.f.
The Central Government revised the rates of payment of Dearness Allowance to Central Government employees from the existing rate of 49 to 52 w.e.f.
The relevant portion of the order in BP FB No.58 which deals with Dearness Allowance reads as under III Dearness Allowance The existing pay structure has been revised at All India Consumer Price Index of 1510 points and the revised dearness allowance will be sanctioned to the employees of the Board as granted by the State Government to their employees at the same rates and from the same date.
01.10.2002 in view of its difficult financial position.
01.07.2002, the State Government as well as the Board have been paying Dearness Allowance at the rate of 49 only.
Accordingly, on 09.07.2003, Board issued orders revising the Dearness Allowance from 49 to 52 from 01.07.2003 adopting the G.O. No.215 dated 27.06.2003.
01.10.2002 in view of extremely difficult financial position faced by the State Government.
Comparative table of the Dearness Allowance paid to the employees of the Central Government, State Government and the Board in the relevant period are as under From Percentage of Percentage of Percentage Dearness Dearness of Dearness Allowance Allowance Allowance allowed by the allowed by the allowed by Central State the appellant Government Government Board 01.01.2002 49 45 45 01.07.2002 52 45 45 01.10.2002 52 49 49 01.01.2003 55 49 49 01.07.2003 59 52 52 As discussed earlier, payment of Dearness Allowance is governed by the Wage Settlement dated 08.07.1998 and the Board Proceedings BP FB No.58 dated 18.07.1998.
The appellant Board has been adopting the formula of the State Government in revising the rate of Dearness Allowance, which was settled under Section 18 1 of the Indian Disputes Act, 1947 and the settlement between the appellant Board and the respondent union.
By order dated 14.09.2012, the learned Single Judge allowed the Writ Petition No.36197 of 2002 observing that the question involved was already companycluded in W.P. No.10474 of 1999 and held that it is number open to the Board to postpone the arrears of Dearness Allowance and credit the same to the General Provident Fund account of the employee without the companysent of the employees.
We may refer to few earlier Government orders followed by the Board orders adopting the same rate of revised Dearness Allowance rates with effect from the same date On 12.05.2001, Proceedings Per BP FB No.24 was issued by the Board whereby the Board adopted the revised DA rates as per GO No.188 dated 26.04.2001 i.e. 43 w.e.f.
The Board by its various proceedings has been adopting the revised rate of Dearness Allowance payable to State Government employees at the same rate and from the same date.
The following points arise for companysideration Pursuant to the Memorandum of Settlement dated 08.07.1998 recorded under Section 18 1 of the Industrial Disputes Act, 1947 and BP FB No.58 dated 18.07.1998, when the Board has been adopting the formula of the State Government in revising the rate of Dearness Allowance on par with the State Government employees, whether the High Court was right in directing the appellant Board to pay the revised DA at the rate of 49 from 01.01.2002 and 52 from 01.07.2002?
No.346 dated 21.10.2002 issued an order revising the Dearness Allowance from existing rate of 45 to 49 w.e.f.
After giving personal hearing to the representatives of the respondent, the Chairman of the Board rejected the representation on 13.09.2002 stating that as per the settlement dated 08.07.1998, Dearness Allowance would be sanctioned to the employees of the Board as granted by the State Government to their employees at the same rate and from the same date.
Similarly, another respondent union CITU filed the writ petition in WP No.36197 of 2002 with the same prayer.
Accordingly, the Government number sanction the revised rate of Dearness Allowance to the State Government employees as indicated below Date from which payable Revised rate of DA per month 1st October 2002 49 per cent of pay Following the State Governments G.O. Ms.No.346, appellant Board vide orders in BP FB No.58 dated 29.10.2002 revised the Dearness Allowance to its employees from 45 to 49 w.e.f.
It is pertinent to numbere that the representation of respondent CITU dated 12.07.2002 was rejected by the Board vide order dated 13.09.2002 which refers to BP FB No.58 dated 18.07.1998 to the effect that the revised Dearness Allowance would be sanctioned to the employees of the Board as granted by the State Government to their employees at the same rate and from the same date.
Pursuant to the settlement and Board Proceedings BP FB No.58 dated 18.07.1998, the Board passed various orders proceedings adopting the revised Dearness Allowance rates as per the State Government orders revising Dearness Allowance to the State Government employees.
These appeals arise out of the judgment dated 27.03.2015 in A. No.497 of 2015 and judgment dated 21.08.2015 in W.A. No.1166 of 2015 in and by which the High Court affirmed the order of the learned Single Judge directing the appellant Board to pay Dearness Allowance at the rate of 49 w.e.f.
01.07.1998, 01.01.1999, 01.07.1999, 01.01.2000, 01.07.2000, 01.01.2001 and 01.07.2001 were all paid as per the above agreed term only.
BANUMATHI, J. Leave granted.
01.07.2003 from the existing rate of 49 to 52.
These appeals relate to the claim of employees of the appellant Board for the payment of difference of Dearness Allowance DA for a period of nine months as under 4 of DA difference of 49 45 from 01.01.2002 to 30.06.2002 7 of DA difference of 52 45 from 01.07.2002 to 30.09.2002 Brief facts giving rise to these appeals are as under A Memorandum of Settlement dated 08.07.1998 was recorded under Section 18 1 of the Industrial Disputes Act, 1947 between the appellant Tamil Nadu Electricity Board Board and its workmen represented by unions for settlement of pay related issues.
The appellant Board adopting the O. No.215 dated 27.06.2003 revised the Dearness Allowance to its employees to 52 from 01.07.2003 on par with the State Government employees.
As per settlement dated 08.07.1998, the Dearness Allowance rates will be revised twice in a year i.e. on 1 st January and on 1st July taking into account the variations in the previous twelve months average of the All India Consumer Price Index numbers adopting the same formula as followed by the State Government.
01.01.2002 to the Signature Not Verified Digitally signed by MAHABIR SINGH members of respondent s union on par with the Central Date 2019.02.13 165244 IST Reason Government employees.
Likewise, when Government of India revised the rate of Dearness Allowance from 49 to 52 w.e.f.
By order dated 22.03.2013, Writ Petition No.9525 of 2003 was also allowed in terms of the order passed in Writ Petition No.36197 of 2002 by holding that the Board cannot postpone the arrears of Dearness Allowance and credit the same to the General Provident Fund of the employee without the companysent of the employees.
Respondent Union filed the writ petition in WP No.9525 of 2003 before the High Court of Madras seeking direction to pay Dearness Allowance at the rate of 49 of the basic pay w.e.f.
