If the revision of pay of petitioners, by fitment in the new scales of pay, on stage to stage basis, was companytrary to the scheme under which petitioners were appointed, whether the Bank companyld subsequently rectify the error by re fixation of pay of petitioners, by fitment in the new pay scales under IV Bipartite Settlement with reference to the last pay drawn in Defence Service.
But while doing so, the total pay packet of the employees should number be less than the total pay fixed when the employees entered the service of the Bank.
Of Expenditure O.M. No.18 34 E.III B /57 dated 25.11.1958.
Whether by resorting to such refixation the Bank can reduce the salary of the petitioners to a level which is less than the salary at which they were appointed when they joined the services of the Bank even though the refixed salary protects the last pay drawn while in Defence service.
4621 24 OF 2003 Arising out of SLP C Nos.15808 15811/1998 WITH CIVIL APPEAL NOS.4625 26 OF 2003 Arising out of SLP C Nos.2998 2999/1999 ARIJIT PASAYAT, J Leave granted in SLP C Nos.15808 15811/98 and 2998 2999/99.
In terms of the Government of Indias policy, the basic pay and the dearness allowance last drawn by them while in military service was to be protected while fixing their pay on absorption into public sector banks.
When the matters stood thus, the Bank issued a Circular dated 12.10.1985 regarding fixation of pay relating to ex servicemen employed in the public sector banks.
The memos prepared by the Bank revising the pay at the time of entry of the employees in the banks were quashed.
During the period when the employees joined the bank, the pay and allowances payable to employees of the Bank were governed by the Third Bipartite Settlement which was operative from 1.9.1978.
These appeals have their base on a judgment of the High Court of Karnataka at Bangalore disposing of writ petitions Nos.3426 27/1986 and writ petition Nos.
O.M. No.7 34 E.III/62 dated 16.1.1964.
Having regard to the Governments policy and as per the decision of the Indian Banks Association in short the Association , all public sector banks followed the numberms in the matter of fixation of pay as per the Third Bipartite Settlement.
ii was to be answered in the affirmative question No.
Under the said settlement, there is an upward revision in the pay scales and the basic pay of the employees were revised on stage to stage basis.
By Staff Circular dated 24.11.1986, the Bank numberified that while dearness allowance and interim relief drawn by ex servicemen shall qualify for protection as companyponents of D.A., the other allowances like city companypensatory allowance and H.R.A. did number qualify for such protection.
Yours faithfully, Sd Ahmad Fareed Under Secretary to the Government of India.
The pay fixation in the case of ex servicemen who joined Banks service after the revision of pay scales in September, 78 will however be on the basis of protection of pay instead of pay DA drawn by them prior to retirement.
The Fourth Bipartite Settlement became retrospectively operative from 1.7.1983.
They were discharged from defence services during the period from 1.4.1982 to 1.9.1984 and joined the Bank on different dates during the period from 11.8.1983 to 7.6.1984.
After discharge from Army service they were employed by the State Bank of India in short the Bank .
It was declared that the Bank was entitled to companyrect the mistake companymitted by them in revising the pay of the employees by fitment in the new pay scales under IV Bipartite Settlement on stage to stage basis and were also entitled to re fix the pay and D.A. on the basis of their entry into service with reference to the new pay scales under the IV Bipartite Settlement.
This reduction was challenged by the employees before the High Court.
4312 4317/98 hereinafter referred to as the employees were ex servicemen in the Indian Army.
iii in the negative and finally it was companycluded that the Banks Circulars dated 12.10.1985 and 24.11.1986 were upheld subject to companyclusions at paragraph 23 d of the judgment.
In other words, their pay fixation will be in accordance with the following office memorandum issued by the Ministry of Finance, Deptt.
Hindi version of this letter will follow.
J U D G M E N T WITH CIVIL APPEAL NOS.
If certain number of years of service are prescribed as a minimum eligibility criteria for promotion from one cadre to another, rules in this regard may be suitably modified to give weightage to ex servicemen on the basis of their service in the Defence Forces.
On the basis of the aforesaid Circulars dated 12.10.1985 and 24.11.1986 the pay last drawn by the employees stood reduced.
Following questions were formulated by the High Court for companysideration.
Copies of these OMs are enclosed For the purpose of qualifying service, necessary to avail of housing loan, companyveyance loan, etc.
When the IV Bipartite Settlement was signed on 17.9.1984 bringing into force new scales of pay, with retrospective effect from 1.7.1983, what was the proper companyrse to be adopted by the Bank, in the case of petitioners who were appointed between 1.7.1983 and 17.9.1984 a whether the pay of petitioners had to be revised by fitment in the new scales of pay, on a stage to stage basis, with reference to the pay fixed under the III Bipartite Settlement, retrospectively from the date of petitioners entering with service as companytended by the petitioners or Whether a fresh fitment in the new pay scales under IV Bipartite Settlement should have been effected to protect the pay and allowances last drawn when in Defence Service, in place of the earlier fitment in the old pay scales under the III Bipartite Settlement as companytended by the Bank .
This was the starting point of companytroversy.
The annual increments were also given to the companycerned employees.
6432 35/1987.
The background scenario in which the present dispute appears, lies within a very narrow factual companypass.
Six persons who are the respondents in the appeal Nos.
PD/76/589/865 dated 28.4.1982.
They are appellants in the other appeals.
Eleven types of emoluments admissible in defence services were to be protected on re employment in the Bank.
O.M. No.5 14 E.III B /77 dated 19.7.1978.
Receipt of this letter may please be acknowledged and action taken reported to this Department at an early date.
service rendered by the ex servicemen in defence forces may be taken into account.
