TaxTMI 
TaxTMI 
1996 (8) TMI 574
X X X X Extracts X X X X
X X X X Extracts X X X X
....been stagnating for seven years, were promoted to the lowest officer's scale. These employees, who were workmen and were called senior operators, senior technicians etc. were, on their placement in the lowest officer's scale, designated as Assistant Foremen (AFM 'D'), Junior Officers (JO 'D') etc. On such placement in the officer's grade these erstwhile workmen were treated as officers and they received all the facilities admissible as officers. 3. On 30th October, 1983 a draft of settlement under Section 18 of the Industrial Disputes Act, 1947 (for short 'the Act') for the pay revision was finalised between the management and the workmen. Based on this on 25th February, 1984 a further settlement under Section 18 of the Act was entered into between the management of the FCI Talchar unit, the appellants herein and its workmen. This settlement was, inter alia, for revision of various pay scales. The revised pay scale so fixed were to be effective from 1st January, 1983 to 31 December, 1986 the highest scale of workmen being Rs. 915-1520. The agreement further contemplated that the next wage agreement was to be effective from 1st January, 1987. I....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 7. A draft agreement dated 1st July, 1987 for the purpose of revising the workmen's pay scales from 1st January, 1987 was finalised between the management and the workmen at their inter company's level. The Government of India approved the aforesaid agreement and on 23rd March, 1990 a settlement under Section 18 of the Act was entered into between the appellants and the respondents. The salient features of the said settlement are as follows. (i) The settlement i.e. the new pay scales for workmen were effective from 1.1.1987 to 31.12.1991. (ii) In the case of workmen placed in the officer's category of JFM (W) on any date after 1.1.1987, fixation was to be done in the revised workman's pay scale from 1.1.1987 upto the date they remained in the workman's category in the pre-revised scale of 915-1520 and the arrears were to be paid to them till date in accordance with the revised scale of 1580-2842. (However, such employees were to continue to draw for future i.e. from the date on which they were placed in the officers' pay scale the same pay as they had been drawing after that date in that scale, namely, 960-1610). (iii) The workm....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the Basic Pay in the existing scales as on 31.12.86. In other words, the annual increment falling on 1.1.1987 will be given in the revised pay scale. (iv) for the officers (including JFM (W)s who had undergone placement only on a date after 1.1.1987, a different fitment formula was stipulated in para 5.3 and the same did not include any fitment amount. The said para 5.3. of the same circular is as follows : METHOD OF FIXATION OF PAY OF SUCH OF THE EMPLOYEES WHO HAVE BEEN PROMOTED FROM THE HIGHEST CATEGORY OF WORKMEN TO THE JUNIOR MOST CATEGORY OF OFFICERS ON OR AFTER 1.1.1987. The pay of such category of employees will be fixed in the revised pay scale of Rs. 2200-100-3600 as per procedure elaborated below : 5.3.1 Take basic pay of workmen category in the revised pay scale of Rs. 1580-2842 on the date of promotion. 5.3.2 Find out the quantum of DA i.e. fixed DA + VDA as admissible to workmen category on the date of promotion. 5.3.3 Allow one notional increment in the revised scale of Rs. 1580-2842 attached to the workmen category. 5.3.4 Add (i), (ii) & (iii) from the aggregate amount thus arrived, deduct revis....
X X X X Extracts X X X X
X X X X Extracts X X X X
....having regard to the date of 1st January, 1987. It was also categorically stated that post 1.1.1987 Junior Foremen (W) like the respondents had been given the benefit of revised workmen's pay scales of Rs. 1580-2842 for the period 1st January, 1987 to the date of their placement, which was 31st August, 1987 in the case of the respondents. 14. The High Court, while allowing the writ petition, observed that there were two questions which essentially arose for its consideration. The first was whether the fitment amount indicated in the circular dealing with the revision of pay scales and fringe benefits of officers of the appellants was a part of the pay scale. The second question was whether the impugned circular as well as the method of fixation of pay Junior Foremen, who were placed in the officers' grade prior to 1st January, 1987 and those placed in that officers' grade after 1st January, 1987, was hit by the principle of discrimination. The High Court did not address itself or decide the question with regard to the manner in which the adjustment of the personal pay was to be made. Presumably this contention was not urged at the time of arguments. 15. While cons....
X X X X Extracts X X X X
X X X X Extracts X X X X
....llant company were revised. The earlier settlement of fixation of pay between the management and the employees was for the period from 1st January, 1983 to 31st December, 1986. Therefore, with effect from 1st January, 1987 a new pay structure had to be fixed. As normally happens on 1st January, 1987, or prior thereto, no order revising the pay scales was actually issued. On 23rd March, 1990 the pay scales of the workers were first revised and this was followed by order dated 18th April, 1991 whereby the pay scales of the officers were revised. Both these orders revised the pay scales with effect from the same date, i.e., 1st January, 1987. What is, therefore, to be seen is as to what was the position of respondents 1 to 23 as on that date, i.e. 1st January 1987. 19. From the facts stated hereinabove it cannot be disputed that respondents 1 to 23 as on 1st January, 1987 had not acquired the officers' grade and were working as Assistant Foremen. On the other hand those of the workers who were in the highest grade and had been placed in the lowest scale of the officers' grade had by 1st January, 1987 already acquired the officers' grade. These two categories of employee....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... basis of their revised grade of Rs. 1580-2842. On the other hand the fixation of pay of pre 1st January, 1987 Junior Foremen (W) has been done on the basis of their unrevised officers' grade of Rs. 960-1610 after giving them a fitment of Rs. 400. The direction to grant the additional fitment benefit of Rs. 400 to the post 1st January, 1987 Junior Foremen (w), whose pay has been revised on the basis of the grade of Rs. 1580-2842, would result in an undue and unjust double advantage being given to the respondents herein. There would, in effect, be a reverse discrimination inasmuch as if the judgment of the High Court is given effect to then the respondents would get more emoluments than their seniors who were placed in the officers scale prior to 1st January, 1987. It has been rightly contended on behalf of the appellants that the High Court's judgment will result in the treatment of unequals as equals, which was clearly not contemplated. 22. Apart from the fact that these two classes of employees are different and are governed by different rules, it is open to the State or the appellants to change the conditions of service unilaterly. As observed in the State of West Ben....