SAVANTH (K.) versus MYSORE ROAD TRANSPORT CORPORATION & ANR.

Citation: [1978] 3 S.C.R. 398 · Decided: 28-02-1978 · Supreme Court of India · Bench: V.R. KRISHNA IYER · Disposal: Appeal(s) allowed
Open in Lexace · Ask the AI about this case
Judgment (excerpt)

A 
B 
c 
D 
E 
F 
G 
H 
398 
SAVANTH (K.) 
v. 
MYSORE ROAD TRANSPORT CORPORATION & ANR. 
February 28, 1978 
[V. R. KRISHNA !YER AND JASWANT SINGH, JJ.] 
Fixation of Pay-Initial fixation of pay in the revised 
scale-Scope and 
ambit of cltJ.use 4 of the Industrial Truce Agreement arrived at on Jannary 10, 
1958 between the management of the Mysore Government Road 
Tr11nspQrf 
Department and the representatives of the State Transport Employees' Fede-
ration. 
Consequent upon the Reorganisation of States and the formatio• of 
the 
enlar~ed Mysore State as well as the expansion of the Mysore 
Government 
!toad Transport Department, it was considered necessary by the members of 
the State Transport Employees Federation and the Management of the Trans-
port Department te have uniform pay scales, service conditions etc. for the 
entire organisation of the Transport Department. Accordingly on January 10, 
1958 an lndustrial Truce Agreement was concluded between the management 
of the Transport Department and the respresentatives of the State Tr!nsport 
Employees' Federation which as given retroactive e!Tect from April 1. 1957, 
Clause 4(a) of the agreement required the pay of an employee to be fixed in 
the new scale at a stage next above his pay .in the existing scale as on 1-~-1957 
(including the increment, if any, accruing on that date). 
After fixation liis 
initial pay, in the revised scale. an employee become entitled nuder 
clause 
4(b) of the agreement be granted advance increment at the rate of one incre-
ment for 3 completed years of service, two increments for 4 completed years 
of service l'lnd three increments for 6 or more completed years of service. The 
fixation of pay was however made subject to clause 4(c) 
which reads: "In 
cases where the minimum pay in the new scale has to be granted under sob 
cll'l.use (a) of clause, 4, the benefit of advance increments according to sub· 
elause (b) above shall not accrue when the increase of the minimum pay in 
the new scale over the pay in the existing scale exceeds Rs. 
25/ • 
plu~ oae 
increment in the new scale. In other cases, where the initial pay has to be 
fixed above the minimum, the total benefit under sub-clause 
(a) 
and 
(b) 
above shall be uniformly limited to Rs. 25/- plus one increment in the revised 
scale subject to a minimum of Rs. 5 /-." 
The initial pay in the revised scale of 175-15-325 of the 
appellant who 
joined the service on September 1, 1950 and who on the relevant date 
was 
drawing a pay of Rs. 150/- in the time scale of 150-10-200 was 
fixed 
@ 
Rs. 190/-. 
Dissatisfied with the fixation, the appellant made a representation 
to the management urging that his initial pay in the revised scale ought to 
have been fixed at Rs. 220!-. 
On August 1, 1961, the Mysore 
State 
Road 
Transport Corporation was constituted and in view of the fact that the service 
conditions of the employees of the erstwhile Transport Departn1ent \Vere pro-
tected by Act 34 of 1951, the appellant opted for service under the Corpora-
tion and kept on pursuing the earlier representation for 
correct 
fixation 
of 
pay. 
His efforts having failed, he made an application 
on December _20, 
1965 before the Labour Court under section 33(c) (2) of the Industrial Dis-
putes Act, 1947 for proper adjudication. Holding that the appellant's pay had 
to be fixed at Rs. 220/- p.m. in the pay scale of Rs. 175-15-325 with a dearness 
allowance @Rs. 50/- o.m. as on Anril 1, 1957. the Labour Court by its order 
dated September 30. 1966 allowed the claim of the appellant and directed the 
Corporation to pav him a sum of Rs. 3,345.29 ps. on account of the benefits 
claimed by him. 
When this view was challenged before the High Court by an 
application under Art. 226. the High Court allowed the petition and held that 
the fixation of pay 
at Rs. 190/- made by the erstwhile management was 
correct. 
Allowing the appeal by special leave, the Court 
• 
• 
• 
• 
• 
1 
' ) 
• 
SAVANTH v. Ms. J..T.C. (Jaswant Singh, !.) 
39!) 
HELD : 1. A plain reading of clause 4 of the Industrial Truce Agreement 
A 
mak1s it crystal clear that the pay of the appellant as on April J, 1957 in the 
then eruting scale of Rs. 150-10-200 being admittedly Rs. 1501- i.e. less than 
the. minimum pay of the revised scale of Rs. 175-15-325, it had, according to 
clause 4(a) of the Agreement to be fixed at Rs. 175/- which is the mininu;rn 
of the revised sc.We. 
The appellant having put in more than six years' servic
Excerpt shown. Read the full judgment & AI analysis in Lexace.