02 April 1991
Supreme Court
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D.T.C. WORKERS UNION Vs THE DELHI TRANSPORT CORPORATION

Case number: W.P.(C) No.-000320-000320 / 1987
Diary number: 62861 / 1987
Advocates: Vs J. S. WAD


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PETITIONER: D.T.C . WORKERS’ UNION & ORS.

       Vs.

RESPONDENT: DELHI TRANSPORT CORPORATION

DATE OF JUDGMENT02/04/1991

BENCH: THOMMEN, T.K. (J) BENCH: THOMMEN, T.K. (J) SAHAI, R.M. (J)

CITATION:  1991 SCR  (1) 984        1991 SCC  (2) 618  JT 1991 (2)    49        1991 SCALE  (1)536

ACT:      Pay      Scales-D.T.C.       employees-Implementationof recommendations   of  Fourth  Pay  Commission-Office   Order No.DGM(IR)/84/90 dated 7.2.1984-Construction of.

HEADNOTE:      The D.T.C. Workers’ Union and some of its members  have filed   this  Writ  Petition  under   Article  32   of   the Constitution  praying,  as the main relief, for issue  of  a Writ of Mandamus or Direction to the  respondent-Corporation to implement w.e.f. 1.1.86 the recommendations of the Fourth Pay Commission as approved by the Government of India to the Central  Government employees as per the undertakings  given to its employees vide Office Orders No.PLD-IX  (465/83/10589 dated 15.9.1983 and DGM(IR)/84/90 dated 7.2.1984. Relying on the undertakings given in the said Office Orders it has been contended  on  behalf  of the petitioners  that  the  D.T.C. employees  will  be entitled not only to new  pay-scales  as recommended   by   the   Fourth  Pay   Commission   to   the corresponding categories in the Central Government but  more in  the  shape  of interim reliefs which  they  has  enjoyed during the period of interregnum between their original pay- scale and the new pay-scales.      On behalf of the Corporation it has been submitted that all the reliefs which its employees had earlier received, be it additional payment in the nature of interim relief in the sum  of  Rs.50 or Rs.70 as the case may be, or  the  revised interim  pay-scale,  pending  adoption  of  the  new   scale recommended  by the Fourth Pay Commission, would merge  into the  new  scale and they would have no  entitlement  to  any additional  payment as any such differential treatment  will be discriminatory and, therefore, unsustainable.           Disposing of the Writ Petition, this Court,      HELD:  The  overriding consideration behind  the  Order dated  7.2.1984  is that, as in the case of  all  Government employees, so in the case of the Corporation employees,  the new  scales recommended by the Fourth Pay Commission  should be  fully implemented. Whatever may be the amounts  actually payable in terms to the interim reliefs, the                                                        985 employees of the Corporation should neither be paid less nor more  than  the Government employees  in  the  corresponding

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categories.[989C]      All  employees, whether retained on the  original  pay- scale or placed on the revised interim pay-scale during  the period  preceding  1.1.86, will be placed on  the  pay-scale adopted  as  per  the  recommendations  of  the  Fourth  Pay Commission  in  such a way that will be  fitted  exactly  in positions  corresponding to their positions on  the  earlier pay-scales. But the corresponding positions in the new  pay- scale  will  naturally  carry better emoluments,  so  as  to maintain  parity  with  the  Government  employees  in  like categories. We have no doubt that the recommendations of the Fourth  Pay  Commission will be fully implemented  in  terms thereof. [989D-E]

JUDGMENT:     ORIGINAL JURISDICTION: Writ petition No. 320 of 1987.      (Under Article 32 of the Constitution of India.)       Jitender Sharma for the Petitioners.      Kepil  Sibal, Ms. Tamali Das Gupta, Ms. J. Wad and  Mr. R.Venkataramani (NP) for the Respondent.      The Judgement of the Court was delivered by      THOMMEN,J.  This petition has been filed by the  D.T.C. Workers’ Union and some its members. The main relief  sought by them, as contained in prayer (a), reads:           "Issue  a  Writ  of Mandamus  or  Direction to the respondent  the  Delhi Transport  Corporation  to  implement w.e.f.   1.1.86  the  recommendations  of  the  Fourth   Pay Commission  as  approved by the Government of India  to  the Central  Government employees as per the undertakings  gives to  its employees vide Office Order  NO.PLD-IX(465)/83/10589 dated 15.9.1983 and DGM(IR)/84/93 dated 7.2.1984."      The  petitioners as well as the respondent,  the  Delhi Transport  Corporation, rely heavily upon the  Office  Order No.  DGM(IR)/84/90  dated  7.2.1984  issued  by  the  Deputy General Manager of the respondent-Corporation, although they differ in their construction of what it contains. We  shall, therefore, read the whole Order;                                                        986          "..........Before  Interim Relief was announced  by          the Central Government for its employees to be paid          w.e.f. 1.6.83, the Wage Group  constituted  by  the          Government  of  India for  considering  the  demand          regarding  revision of pay-scales of the  employees          of the Delhi Transport Corporation gave its  report          recommending  revision  of pay-scales  of  all  the          Class  III  & IV employees as  an  interim  measure          pending  receipt of Fourth Pay  Commission  report.          Thus  the  revised scales themselves  were  in  the          shape  of an interim relief. As interim relief  was          announced  by  the  Government  for  its  employees          almost  simultaneously some  unions approached  the          Management opposing the introduction of new  scales          and  asking  for  the  interim  relief  as  at  the          Government rates. It was explained to them that the          revised scales have a greater in built advantage as          the  benefit  in some cases go  even  over  hundred          rupees  while interim relief for workers was  fifty          to  seventy  rupees. However, an option  was  given          vide circular No.PLD-IX(465)/83/10589 dated 15.9.83          to the employees of the Corporation either to avail          the  benefit of interim relief and retain  the  old          pay  scales or to avail the benefit of the  revised          pay-scales.  In  reference  to  the   clarification

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        sought by the Unions, it was made absolutely  clear          beyond  any  ambiguity to the employees  that  -(1)          there is absolutely no intention to de-link the DTC          from  the Central Government pay-structure  and  DA          pattern  arbitrarily or unilaterally; (ii)  if  the          Fourth Pay Commission granted any further   interim          relief  or benefit  before the final  report,  such          benefit  will  be available to the  DTC  employees;          (iii) the differential in the head start now  given          in  the  pay-scales will be maintained  even  while          implementing  the scales recommended by the  Fourth          Pay  Commission and (iv) the payscales  recommended          by  the  Working Group would be enforceable  for  a          period  of four  year or the receipt of  report  of          the   Commission  whichever  is  earlier.  It   has          already been made amply clear that differential  in          "head  start" given in the revised pay scales  will          be  maintained even while implementing  the  scales          recommended  by  the  Fourth  Pay  Commission.   In          fixation of pay in the scales to be recommended  by          the  Foruth  Pay Commission, the  employees  coming          over to the revised scales of pay will be given due          benefit of Central Government Interim Relief so  as          to  ensure  that they are not at  any  disadvantage          because of having opted for the revised scales now.          For instance, if the                                                        987          pay of an individual in the pay-scale of Rs.260-400          drawing  a  basic pay of Rs.260 per month  who  had          opted  for  interim Relief  at  Central  Government          rates  is fixed at Rs.310 p.m. by adding  Rs.50  as          Interim  Relief a Basic Pay of Rs.260  whereas  the          pay of an employee who has opted for  corresponding          revised  pay-scale   of Rs.284-440 and  is  drawing          Basic  pay of Rs.284 p.m. will be fixed  at  Rs.334          p.m. by adding Rs.50 to his Basic Pay of Rs.284. In          this connection our circular NoPLD-IX(465) 83 dated          20.9.93 referees.          It   has   been   clearly  shown   in   the   above          illustrations as to how the revised pay-scales will          be  beneficial to the employees. It is  opted  that          the employees will not be mislead  now by any  such          interpretation   which  is  being  placed  on   the          Ministry of Finance’s O.M. of 28th November ,1983."      Referring  to the concept of "head start" mentioned  in the   Order,   Mr.  Jitender  Sharma,  appearing   for   the petitioners,  submits  that it being the  intention  of  the Corporation  to  protect the interim relief granted  to  the employees,  not  withstanding  the  recommendations  of  the Fourth  Pay  Commission, the employees are entitled  to  the interim relief, referred to as the "head start", in addition to  the pay-scale recommended by the Fourth Pay  Commission, In  other words, according to Mr.Sharma, the employees  will be entitled not only to the new pay-scale recommended by the Fourth  Pay  Commission, but more in the  shape  of  interim reliefs  which  they had enjoyed during the  period  of  the interregnum  between  their original pay-scale and  the  new payscale.      Mr.   Kapil  Sibal,  appearing  for   the   respondent- Corporation, submits that all that the Order dated  7.2.1984 has  intended to state is that the "head start" in the  form of interim relief will not deprive the employees of the full benefits of either the revised interim pay-scale, i.e.,  the scale  as  revised during the interregnum, or the  new  pay- scale subsequently introduced as per the recommendations  of

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the  Fourth  Pay Commission. The employees  had  the  option either to accept the additional payment in the nature of  an interim relief in the sum of Rs.50 or Rs.70 as the case  may be, or the revised interim pay-scale which was itself in the nature  of  an interim relief, pending adoption of  the  new scale recommended by the Fourth Pay Commission. But once the employees are placed on the scale recommended by the  Fourth Pay  Commission,  all  the reliefs which  they  had  earlier received would merge into the new scale and they would  have no entitlement to any                                                        988 additional  payment.  Any payment in addition  to  what  the Fourth Pay Commission recommended would place the  employees of  the Corporation at an undue advantage in  comparison  to the employees of the Government in Corresponding grades. Any such  deferential  treatment, counsel points  out,  will  be discriminatory and, therefore, unsustainable.      Mr.  Sharma,  however,  refers to  the  scales  of  pay relating to the category of conductors,  tailors,compositors etc.  Their scale of pay prior to June, 1983  was  Rs.260-6- 290-EB-6-326-EB-8-390-10-400.  A revised interim  scale  was introduced on 1.6.1983. This scale was  Rs.284-8-340-10-440. On  1.1.86, a new scale was introduced on the basis  of  the recommendations of the Fourth Pay Commission. That scale  is Rs.950-20-1150-EB-25-1500.   This  shows  that,   prior   to 1.1.1986,  an  employee  on the scale of  Rs.260-400  as  on 31.5.1983 had the option either to remain on that scale  and draw  an  additional allowance or be placed on  the  revised interim  scale of Rs.284-440 . On 1.1.1986 all employees  in the  category  of  conductors etc., came  on  the  scale  of Rs.950-1500 whether or not, prior to that date, they had, in exercise of their option, remained on the original scale  or Rs.260-400 with the additional allowances or been placed  on the  revised  interim  scale Rs.284-440.  According  to  Mr. Sharma,  the "head start" promised by the Corporation  means the additional allowances or revised scales recieved by  the employees during the interregnum, and such benefits have  to be  super  imposed  over the new scale  of  Rs.950-1500.  He further  submits,  insofar as none of the employees  of  the Corporation  had opted to remain on the original scale  with the  additional  allowances,  but had come  on  the  revised interim  pay-scale,  all the employees brought  on  the  new pay-scales  on  1.1.86  are  entitled  to  be  fitted   with reference  to  the  total emoluments drawn  on  the  revised interim scale.      A  careful  reading of the Order dated  7.2.1984  shows that certain interim benefits were granted to the  employees preceding the introduction of the new pay-scale on the basis of  the recommendations of the Fourth Pay commission.  These benefits  which were either in the nature of  an  additional payment  or  a revised interim pay-scale  were  intended  to cover  the period preceding the introduction of the  regular pay-scale  which  came  into effect  on  1.1.86.  The  Order further shows that the Corporation was to carry the same pay structure  and DA pattern as in the case of  the  Government employees  in  the corresponding  categories.  All  benefits granted  by  the  Fourth Pay Commission  in  the  nature  of interim reliefs were also to be made available to the                                                        989 Corporation  employees. The interim reliefs granted  by  the Corporation in the nature of what is imprecisely referred to as  "head start" were to be maintained in  implementing  the scales recommended by the Fourth Pay Commission. The figures worked  out  in  the penultimate  paragraph  of  the  Report indicate  that  whether the employees were retained  on  the

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original pay-scale with the additional emoluments by way  of interim  relief or they had, as in the instant  case,  opted for the revised interim scale, they should suffer no loss by reason  of the option they hadexercised. But the  overriding consideration behind the Other dated 7.2.1984 is that, as in the case of all Government employees, so in the case of  the Corporation  employees,  the new scale  recommended  by  the Fourth Pay Commission should be fully implemented. What ever may be the amounts actually payable in terms of the  interim reliefs, the employees of the Corporation should neither  be paid  less  nor more than the Government  employees  in  the corresponding categories.      This means that all employees, whether retained on  the original  pay-scale  or placed on the revised  interim  pay- scale during the period preceding 1.1.86 will be  placed  on the  pay-scale  adopted as per the  recommendations  of  the Fourth Pay Commission in such a way that they will be fitted exactly in positions corresponding to their positions on the earlier  pay-scales. But the corresponding positions in  the new pay-scales will naturally carry better emoluments, so as to  maintain  parity with the Government employees  in  like categories.      In  the  circumstances,  we  have  no  doubt  that  the recommendations  of the Fourth Pay Commission will be  fully implemendted  in terms thereof. Mr. Kapil  Sibal,  appearing for the Corporation, assures us that it will be so done. Mr. Sibal’s  submission  is recorded. In the  circumstances,  no further order is required. The writ petition is  accordingly disposed of. No costs. R.N.J.                                  Pentition disposed of.                                                   990