G S KAUSHIK RAKESH KUMAR GAUTAM Vs. UNION OF INDIA
LAWS(SC)-1996-4-165
SUPREME COURT OF INDIA (FROM: ANDHRA PRADESH)
Decided on April 12,1996

G.S.KAUSHIK,RAKESH KUMAR GAUTAM Appellant
VERSUS
UNION OF INDIA Respondents

JUDGEMENT

S. C. Agrawal, J. - (1.) These applecations for directions have been filed in Writ Petitions Nos. 132 of 1984 and 7149-50 of 1982. In the said Writ Petitions filed by the All India Regional Rural Banks Employees Association and the All IndiaGramin Bank Worker's Organisation representing the employees of the Regional Rural Banks (for short 'RRBs'), the petitioners sought parity in emoluments between the employees of RRBs inter se as well as the employees of the Nationalised Commercial Banks. The said Writ Petitions were disposed of by this Court by the following order dated September 1, 1987:- "We are happy to know that the Central Government had agreed to appoint a National Industrial Tribunal to decide the question relating to pay, salary, other allowances and other benefits payable to the employees of Regional Rural Banks constituted under the Regional Rural Banks Act, 1976. The learned counsel for the petitioners also agreed that a reference may be made to the proposed Tribunal. In view of the above, it is not necessary to pronounce on the questions of law raised in these writ petitions before us. We leave all the contentions. The Central Government shall refer the dispute to the Tribunal preferable to a retired Chief Justice of a High Court, within four weeks from today. We hope that the Tribunal will pronounce its award as expeditiously as possible. These writ petitions are disposed of accordingly."
(2.) In accordance with the directions given by this Court, the Central Government, by order dated November 26, 1987, constituted a National Industrial Tribunal (hereinafter referred to as 'the Tribunal') consisting of Hon'ble Mr. Justice S. Obul Reddy, retired Chief Justice of Andhra Pradesh High Court, as its Chairman. By the said order the disputes relating to pay, salary, other allowances and other benefits payable to the employees of RRBs in terms of the pleadings of parties in Writ Petitions (Civil) Nos. 7149-50 of 1982 and 132 of 1984 filed in this Court were referred to the Tribunal. The Tribunal gave its award dated April 30, 1990, wherein the Tribunal has held that upto August 31, 1987 the employees of RRBs should be extended the pay scale and allowances as are admissible to the State Government employees in comparable posts and status and that with effect from September 1, 1987 the said employees shall be entitled to the pay scales, allowances and other benefits on par with the employees of comparable levels in corresponding post of respective sponsor banks. With regard to equation of posts, the Tribunal has held that the Government of India may decide the same in consultation with such authorities, as it may consider necessary. The Government of India appointed an Equation Committee on October 5, 1990 under the Chairmanship of Shri P. Kotaiah, the then Managing Director of the National Bank for Agriculture and Rural Development (for short 'NABARD'). The Equation Committee submitted its report on January 8, 1991 which has been accepted by the Government of India and instructions have been issued to all the implementing agencies by circulars dated February 22, 1991 whereby RRBs employees have been brought into the sponsor bank scales of pay with effect from September 1, 1987. The salaries of employees in the employment of RRBs are being paid in the revised scales from January 1, 1991.
(3.) By these applications the applicants are seeking directions regarding implementation of the directions given by the Tribunal in the award. The main grievance of the applicants is regarding non-payment of arrears payable to the employees of RRBs in terms of the award of the Tribunal. As per the counter affidavit filed on behalf of the Union of India the said liability is about Rs.220 Crores. By order dated September 12, 1994, the Court directed the Union of India and NABARD to prepare a scheme in consultation with the Employees' Association with regard to the discharge of the said liability. In pursuance of the said directions, the Government of India constituted a Committee under the Chairmanship of Shri K. Basu, General Manager, NABARD [hereinafter referred to as 'Basu Committee'], to prepare a scheme with regard to payment of arrears to all the employees of RRBs as a consequence of the implementation of the award of the Tribunal read with the report of the Equation Committee. Basu Committee, in its report dated February 22, 1995, has suggested a scheme for payment of the arrears payable to the employees of RRBs in terms of the award. In respect of the employees who are in the employment of RRBs as on the date of pronouncement of the Scheme and employees who were/are dismissed/whose services were/are terminated/who ceased to be in employment of the RRBs by any other method save those who retired/resigned/deceased whether prior to or after the pronouncement of the Scheme, the Scheme envisages payment of the arrears in three installments. The first instalment to be paid within six months from the date of pronouncement of the scheme by this Court, the second instalment to be paid not later than one year from the date of payment of the first instalment, and the third instalment to be paid not later than one year from the date of payment of the second instalment. As per the said scheme the first instalment would cover 50% of the arrears while the second and third instalments each would be in respect of 25% of the said arrears. As regards employees who have retired/resigned upto and including the date of pronouncement of the scheme by this Court and in respect of legal heirs of deceased employees who died either while in service or otherwise upto and including the date of pronouncement of the scheme, it has been suggested that the entire payment should be paid lump sum in one instalment. As regards those employees who retired/resigned after the date of pronouncement of the scheme by this Court and legal heirs of deceased employees who died either in service or otherwise after the date of pronouncement of the scheme by this Court, it has been suggested that the payment may be made in two instalments of 50% each. Basu Committee suggested that the funds for the purpose of payment should be provided by the Government of India in the form of soft loan and there shall be a moratorium for repayment of the loan by the RRBs to the Government of India for a period of five years from the date of the receipt of last instalment by RRBs from the Government of India and the repayment of the loan by RRBs to the Government of India after the moratorium period shall be as determined by the Government of India in consultation with each RRB separately. With regard to the rate of interest to be charged by the Government of India from the RRBs, it is suggested that it shall not exceed one-fourth of the Bank Rate prevailing as on the date of pronouncement of the scheme by this Court.;


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