JUDGEMENT
Hidayatullah, J. -
(1.) The management of the Indian Overseas Bank Ltd., Chandni Chowk, Delhi, appeals by special leave against the award, dated October 6, 1964, of the Industrial Tribunal (Central), Lucknow. The respondents are the Delhi State Bank Employees Association representing the the case of one Om Prakash Gupta, head cashier at the Chandni Chowk branch of the bank. Om Prakash Gupta was in receipt of Rs. 15-00 per month which went under the name of " Key Allowance ". This allowance was paid to other cashiers of the bank also. The allowance was started in this bank on September 15, 1958, after the Award by Mr. Sastry but not as a consequence of that Award. Om Prakash Gupta received the allowance till November 30, 1962 but it was stopped from December 1, 1962, on the ground that it had lapsed as it was not included in the Bank Award given by Mr. K.T. Desai. The decision of the bank was communicated to all its branches on December 21, 1962, by exhibit K-2. The circular mentioned the special allowances admissible under the Award to the cashiers of different categories at A class banks stating at the same time that the head cashiers, being officers, were not eligible for the special allowances prescribed therein. The circular stated that no recovery of the back " Key Allowance " paid between January and November, 1962, need be made but its payment in future should be discontinued from December 1, 1962. The " Key Allowance " paid till this date was ordered to be deducted from special allowances.
(2.) Before we pursue the matter further it is necessary to explain what this " Key Allowance " was and how it came into existence in the Indian Overseas Bank. The Sastry Award prescribed separate scales of pay for different members of the staff. For certain special cases which involved extra responsibilities of work three methods of giving additional emoluments were devised. One such method was a lump sum allowance payable to an incumbent in a particular category. Special allowances were ordered for cashiers in banks. The " Key Allowance " was, however, not one of the special allowances. When the National Tribunal presided over by Mr. K.T. Desai met, a claim for increase in special allowances was made and also conceded in suitable cases. Mr. Desai also considered certain other allowances which the Sastry Tribunal had ordered. Some of these were continued and some others were discontinued and the remaining were left to the discretion of the management of the bank concerned.
(3.) The "Key Allowance" seemed to have existed only in the Indian Overseas Bank and Andhra Bank. These banks made a special representation about the " Key Allowance " and the Indian Overseas Bank stated that the bank had allowed a " Key Allowance " of Rs. 15-00 per month as a gesture of goodwill to the cash department staff who were in joint custody of cash at various centers. The bank pleaded that when the scales of salary and special allowances granted by the Desai Tribunal came into force the " Key Allowance " should be withdrawn even from those who were then drawing such allowances and that the bank should be at liberty to continue the allowance or not. The bank also represented that the employees should either opt in toto for the privileges and benefits that were then being enjoyed or the new emoluments as determined by the Tribunal. Mr. Desai observed, in his Award, as follows:
" The continuation of these allowances rests entirely with the management and I give no direction in connection therewith " : (paragraph 6.63, page 187). ;
Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.