- (1.) THE two petitioners in this Writ petition are Class III and Class IV employees of the Life Insurance corporation of India (Respondent No. 3 ). The petitioners obtained leave under Order 1, rule 8 of the Code of Civil Procedure and made the requisite publication of the advertisement.
(2.) ON January 29, 1965, the respondent no. 3 entered into a settlement of certain disputes between it and its employees. By this settlement it was agreed that with effect from August 1, 1964, Additional Temporary Dearness allowance =8 % of the basic salary of class IV employees who were governed under the scales of pay, dearness allowance and other allowances in Part a, of Schedule II of Staff Regulations, 1960 and =- 6 per cent of the basic salaryof Class III employees who were governed by the said Staff Regulations based on 3 points of the All India working Class Consumer Price Index (base 1949 = 100) over and above what was admissible to the said Class iii and Class IV employees, under clause III of fhe Memorandum of settlement arrived at between the respondent No. 3 and. the All India Insurance Employees' Association on January 23, 1963, would be given to the said class III and class IV employees until the happening of one or the other of two events namely : (a) the expiry of the said settlement or (b)the 1960 base index figures were available, whichever was earlier. It is clear that from time! to time there had been settlement of various matters regarding the employment of the employees of the respondent No. 3 and two of these settlements took place in 1963 and 1965. In the 1965 settlement there were altogether 11 clauses. 'clause 7 of this settlement is of importance so far as this Writ petition is concerned and i set out the same below :-"7, Temporary increase in Dearness Allowance : with effect from 1-8-1964, an additional amount of temporary dearness allowance equal to 8 per cent of their basic salary in respect of those Class IV employees who are governed under the scales of pay, D. A. and other Allowances (wherever payable) in Part A of schedule II of (Staff) Regulations, 1960, and equal to 6 per cent of their basic salary in respect of those Class III employees who are governed under the scales of Pay, D. A. and other Allowances (wherever papable) in Part A of schedule II of (Staff) Regulations, 1960, based on 8 points of the All India Working Class consumer Price Index (base 1949 = 100) over and above what is admissible to the said Class IV and class III employees under clause III of the Memorandum of Settlement arrived at between the Corporation and the ail India Insurance Employees' Association on the 23rd January 1963 would be given until (a) the expiry of the said settlement or (b) the 1960 base index figures are available, whichever is earlier".
(3.) SHORTLY put clause 7 of the settlement provides that additional Temporary Dearness Allowance = 8 per cent of basic salary of Class IV employees and similar temporary clearness allowance = 6 per cent of the basic salary of Class III employees over and above what is admissible to such employees under the 1963 settlement would be given until either the expiry of that settlement or until the 1960 base index figures are available, whichever is earlier.;