DURGA NARAYAN versus CHAIRMAN AND MANAGING DIRECTOR, DENA BANK

Citation: [1995] 1 S.C.R. 513 · Decided: 20-01-1995 · Supreme Court of India · Bench: A.M. AHMADI · Disposal: Dismissed

Judgment (excerpt)

DURGA NARAYAN 
A 
v 
CHAIRMAN AND MANAGING DIRECTOR, DENA BANK 
JANUARY 20, 1995 
[A.M. AHMADI, CJ, B.L. HANSARIA AND S.C. SEN, JJ.) 
B 
~ 
Service Law-Appointment~conomic Officer in Dena Bank-Officer 
having been put in pay scale of Rs. 700-1800 as laid down by Pillai Commit-
tee-claim of fitment under Dena Bank (Officer's) Service Regulation 
1979-Not sustainable-DA payable as recommended by Pillai Commit- c 
tee-Bank Directed to verify and pass speaking order. 
Appellant was offered appointment on 26th May, 1978 in the Dena 
Bank as Ec'onomic Officer in pay scale I as laid down by the Pillai 
.. 
Committee, which was Rs. 700-1800, with other allowances, perquisites and 
D 
.... 
benefit as per the Pillai Committee recommendations. The appellant 
joined the ·Bank and after about 10 years of his se,rvice claimed fitment 
benefit in the new pay scale as recommended by the Pillai Committee for 
'Scale C' Officer who were categorised as 'Junior Management Grade 
Scale' Officers by the Comittee. The High Court dismissed the writ petition 
filed by the appellant. Hence this appeal. 
E 
The appellant alleged that though basic pay meant ·ror Junior 
Management Grade Scale I Officer as recommended by Pillai Committee 
was made available to him, the fitment of which mention had been made 
in Dena Bank (Officer's) Service Regulations, 1979, had not been don~ He 
F 
argued that if anything further was due to him, same might not be denied 
on the ground of estoppel. 
The Bank contended that the appellant was not entitled to any 
litment under the Regulation inasmuch as question of litment could arise 
only for the existing Officers and not for new appointees 'like the appellant. G 
It was stated that whatever Wi'S made available by the Pillai Committee's 
-;,.. 
report to incumbent like appellant had been given while offering appoint· 
ment to him. 
The question raised for consideration was whether by fixing his basic 
pay at Rs. 700 a the time of his appointment itself, the benefit had been H 
513 
514 
SUPREME COURT REPORTS 
(1995) 1 S.C.R. 
A made avail?ble to the appellant or not. 
Dismissing the' appeal, this Court 
HELD : 1.1. Though Pillai Committee's recommendations were for• 
mally made effective from 1st July, 1979 the same had come to be imple· 
B mented with effect from 1st May, 1978 and it was because of this, that though 
the appellant's offer of appointment was dated2.6th May, 1978 his basic pay 
was stated as Rs. 700, though in the advertisement, which was published on 
25/26 August, 1977 pursuant to which appellant had applied, emoluments to 
be given were said to range from Rs. 325 to Rs. 925. [517-C-D] 
c 
D 
E 
1.2. The appellant was not entitled to any amount as the question of 
fitment could arise only qua those officers who were in the old scale of pay 
and which came to be revised pursuant to Pillai Committee's Report, and 
not qua those who had already been given new pay scale, as was the 
appellant. [517-F] 
2.1 Perusal of the Report shows that apart from the matter relating 
to the pay scale, it dealt with "Amenities, Facilities and Benefits in Kind" 
which formed subject matter of Chapter 7 of the Report. So, the claim of 
fitment cannot be sustained on the basis of what was recommended on the 
score of benefits in kind. [518-B] 
2.2 DA, as per chart I given in the booklet title "Pay Scales; Allowan-
ces and perquisites of Officers in the Nationalised Banks" issued by All 
India Conference of Bank Officer's Organisation (Maharashtra State 
Unit), of those officers whose basic pay is Rs. 700 is required to be Rs. 450. 
F If this was so as per the recommendations of the Pillai Committee, the DA 
of the appellant would be required to be raised to Rs. 450. The Bank shall 
verify this and do the needful within a period of two months by passing a 
speaking order in this regard. [518-F-G] 
Shri Devendra Management Trainee v. Punjab National Bank, JT 
G (1993) 6 SC 537 distinguished. 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 870 of 
1995. 
From the Judgment and Order dated 31.3.93 of the Madhya Pradesh 
H High Court in M.P. No. 251of1988. 
.. 
( 
DURGA NARAYAN v. DENA BANK [HANSARIA, J.) 
515 
U.N. Bachawat and H.M. Singh for the Appellant. 
A 
R.C. Pathak and Ms. Prana Tandon for the respondent. 
The Judgment of the Court was delivered by 
HANSARIA, J. The Government of India, by a resolution dated July B 
19, 1973 appointed a committee consisting of five members to standardise 
pay scale, allowances 

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