- (1.) The government of India, by a resolution dated 19-7-1973 appointed a committee consisting of five members to standardise pay scale, allowances and perquisites of the officers in the 14 nationalised banks. The Committee came to be popularly referred as the "pillai Committee" named after its Chairman. It submitted its report in May 1974. The government appointed a Study Group of Bankers in September 1976 to make suggestions for the implementation of the report. The Committee suggested certain modifications inthe method of implementation and submitted its further report in February 1977; and the government adopted the report as modified by the Group of Bankers.
(2.) The question of implementation of the report as adopted by the government was discussed by the Indian Banks' Association with various representatives of all the Confederations of Banking Officers' Organisation; and the secretary of this Association addressed private and confidential letters to Chief Executives of various banks including Dena Bank on 15/3/1978 that the government has desired to bring Pillai Committee's recommendations in force latest with effect by May 1978. The Chief Executives were, therefore, advised to take steps to introduce the new scales of pay and allowances as per the Committee's report and to make appropriate fitment in the emoluments of the existing officers with effect from 1/5/1978 or even earlier if so desired, after discussion with the organisations representing the officers. This letter further informed the Chief Executives about the desire of the government that all new appointments on or after 1/5/1978 should be on the terms and conditions contained in the Pillai Committee report.
(3.) The aforesaid communication was followed by a secret letter from the Joint secretary of the Ministry of Finance, Department of Economic Affairs (Banking Division) dated 28/3/1978, mentioning about the concern of the government about the delay in the implementation of the recommendations of the Pillai Committee. In view of this, the Banks were advised by the Joint secretary that if there is going to be delay in the total implementation of the recommendations, immediate steps should be taken to bring the new pay scales and allowances applicable to all new recruits and new promotees from clerks to officers cadre, pending fitment of the existing officers in the new scales. This letter contains some other advice also.;