Pre-appointed-day settlement on dearness allowance was not additional dearness allowance under the compulsory deposit law.

Enhanced dearness allowance agreed under a pre-appointed-day settlement did not qualify as "additional dearness allowance" under section 2(b) of the Additional Emoluments (Compulsory Deposit) Act, 1974, because the relevant sanction arose from the settlement itself, not from later awards made in its terms. The Act required the increase to be sanctioned after the appointed day, and that condition was absent here. The later awards merely implemented the earlier settlement and did not shift the date of sanction, so compulsory deduction under the Act was not attracted.

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Issues: Whether the enhanced dearness allowance agreed under a settlement dated 28 June 1974 and embodied in later awards was "sanctioned" after the appointed day so as to constitute "additional dearness allowance" under section 2(b) of the Additional Emoluments (Compulsory Deposit) Act, 1974, and attract compulsory deduction.

Analysis: The definition of "additional dearness allowance" required that the rise in dearness allowance be sanctioned after the appointed day. The settlement fixing dearness allowance at 100% of the Ahmedabad rate was arrived at before 6 July 1974, and the later awards merely gave effect to that settlement. Once the awards were made in terms of the settlement, the settlement had merged in the awards and the sanction retained the date of the settlement. The Act itself recognised settlements alongside awards, so there was no basis to treat the sanction as arising only from the later awards. Since the rise in dearness allowance was sanctioned before the appointed day, the first component of section 2(b) was absent and the provision was not attracted.

Conclusion: The enhanced dearness allowance was not additional dearness allowance under section 2(b) because it was sanctioned before the appointed day.

Ratio Decidendi: A rise in dearness allowance agreed by settlement before the appointed day does not become "additional dearness allowance" merely because a subsequent award is made in terms of that settlement; the relevant sanction is the settlement itself, not the later formal award.

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