- (1.) This appeal by special leave which is directed against the judgment and order dated December 14, 1970 of the High Court of Mysore at Bangalore allowing the writ petition No. 1176 of 1967 filed before it by the first respondent herein under Arts. 226 and 227 of the Constitution and quashing the orders dated September 30, 1966 and January, 1, 1967 of the Labour Court, Bangalore made in the appellant's application No. 171 of 1965 raises an interesting question as to the scope and ambit of clause 4 of the Industrial Truce Agreement arrived at on January 10, 1958 between the Management of the Mysore Government Road Transport Department and the representatives of the State Transport Employees' Federation.
(2.) It appears that the appellant entered the service of the Bangalore Transport Company Ltd. on Sept. 1, 1950 as a Probationary Traffic Supervisor on a salary of Rs. 80 per mensem. On Completion of his probationary period, he was confirmed in the said post on a salary of Rs. 100 in the pay scale of Rs. 100-10-150. By virtue of the powers vested in it under the Bangalore Road Transport Services Act No. 8 of 1956, the Government of Mysore acquired the Bangalore Transport Company Ltd., with effect from Oct. 1, 1956 with the result that along with other employees of the Company, the appellant became a civil servant in the Transport Department of the Government of Mysore which catered to the transport requirements of the public. In Course of time, the appellant was appointed as Assistant Traffic Superintendent and was given a higher pay scale of Rs. 150-10-200. On April 1. 1957 when he held that post, he was in the pay scale of Rs. 150-10-200 and was drawing a salary of Rs. 150 P.M. With the Reorganisation of the States and the formation of the enlarged Mysore State as well as the expansion of the Mysore Government Road Transport Department (hereinafter referred to as 'Transport Department' comprising of the Hubli Region of the ex-Bombay State Road Transport Corporation, the Raichur Section of the ex-Hyderabad State Road Transport Department and the Bangalore Transport Service of the ex-Bangalore Transport Company Ltd., having their respective pay scales, service conditions etc, it was considered necessary by the members of the State Transport Employees Federation as well as the Management of the Transport Department to have uniform pay scales, service conditions etc. for the entire organisation of the Transport Department. Accordingly, on January 10, 1958, an Industrial Truce Agreement was concluded between the Management of the Transport Department and the representatives of the State Transport Employee's Federation which was given a retroactive effect from April 1, 1957, Clause 4 of this Agreement which was intended to bring about uniformity of pay scales in all the divisions of the Transport Department provided as follows:- "4. Weightage in the revised pay scales will be admissible only to the regular employees of the Government Road Transport Department of ex-State of Mysore and the Bangalore Transport Service Unit. (a) The pay of an employee shall be fixed in the new scale at a stage next above his pay in the existing scale on 1-4-1957 and, if his present pay is less than the minimum of the revised scale, his pay shall be fixed at such minimum in the revised scale. Note- The pay in the existing scale on 1-4-1957 includes the increment, if any, accruing on that date. (b) After fixing the pay as above i.e. 4 (a) he shall be granted advance increments in the revised scale as under: (1) For 3 completed years of service 1 Increment (2) For 4 completed years of Service 2 Increments (3) For 6 or more completed years of service 3 Increments Note - Service means, the entire service of the employee irrespective of the grade held by him. (c) In cases where the minimum pay in the new scale has to be granted under sub-clause (a) of clause 4, the benefit of advance increments according to sub-clause (b) above shall not accrue when the increase of the minimum pay in the new scale over the pay in the existing scale exceeds Rs. 25 plus one increment in the new scale. In other cases where the initial pay has to be fixed above the minimum, the total benefit under sub-clauses (a) and (b) above shall be uniformly limited to Rs. 25 plus one increment in the revised scale subject to a minimum of Rs. 5. (d) The above principles shall apply in fixing the initial pay both in substantive and officiating appointments. (e) When the weightage under subclause (b) above takes the total pay beyond the scale, the difference is treated as personal pay. (f) The future increments will accrue from 1-4-1958."
(3.) After the conclusion of the aforesaid Industrial Truce Agreement, the then management of the Transport Department fixed the initial pay of the appellant in the new scale at Rs. 190, Dissatisfied with this fixation, the appellant made a representation to the management urging that his initial pay in the revised scale ought to have been fixed at Rs. 220 and that it had been wrongly fixed at Rs. 190.;