TMI Blog2001 (1) TMI 1002X X X X Extracts X X X X X X X X Extracts X X X X ..... e the subsequent Bipartite Settlements, namely the 6th and 7th Bipartite Settlements should be given effect to revise the pay structure of the officers and employees of the Regional Rural Banks also. In these appeals, apart from the respondents, who had filed the writ petition in Kerala High Court, namely Co-ordination Committee of South Malabar Gramin Bank Employees Union, All India Regional Rural Bank Employees Association, who had filed the writ petition in the Karnataka High Court had applied for intervention, All India Regional Rural Bank Officers Federation, who happen to be the petitioner in Transfer Petition No. 403/99, All India Gramin Bank Workers Organisation, who had filed a writ petition in this Court, under Article 32 wherein order has been passed that writ petition would come after disposal of the civil appeals, had made their respective submissions through different counsel, all the respondents having supported the judgment of the learned Single Judge of Kerala High Court, as upheld in appeal by the Division Bench. It may be noticed at this stage that the similar question had been raised before the Calcutta High Court and a learned Single Judge of the Calcutta High ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t petitions were being heard in the Supreme Court, the Government of India 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 the Regional Rural Banks constituted under the Regional Rural Banks Act, 1976 and the counsel for the petitioners also agreed that a reference may be made to the proposed tribunal. This Court, therefore left all the contentions open and directed the Central Government to refer the dispute to the tribunal, preferably to a retired Chief Justice of a High Court, who will pronounce its award as expeditiously as possible. In terms of the aforesaid orders of this Court, the Central Government appointed Justice S.Obul Reddi, retired Chief Justice of High Court of Andhra Pradesh as Chairman of National Industrial Tribunal and referred the disputes to the said tribunal. The Notification, appointing the tribunal stated that the decisions of the tribunal will be final and binding. The tribunal thus appointed, passed an award after elaborate discussion of the materials placed before it. The ultimate directions of the tribunal were that officers and employees of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uggest changes therein. The learned Single Judge of the High Court came to the conclusion that by the decision of the Government of India dated 22nd February, 1991 implemented the award of Justice S.Obul Reddi and thereby extended the benefits of 4th and 5th Bipartite Settlements and on principle having accepted the same, further consideration by the Government of India or any order by the Government of India is not necessary for extending the benefits of the subsequent Bipartite Settlements to the employees and officers of the Regional Rural Banks and accordingly, the impugned direction was issued, which was upheld in appeal by the Division Bench. Mr. P.P.Rao, the learned senior counsel, appearing for the South Malabar Gramin Bank, contended before us that under the provisions of the Act, more particularly under second proviso to Section 17(1) of the Act, it is only the Central Government, who has been conferred with the power to determine the remuneration of the officers and employees appointed by the Regional Rural Bank and for determining such remuneration, the legislature has also indicated the guidelines and this being the position the question of giving effect to any Bipa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ationalised Commercial Banks and in determining the pay structure of the employees, the financial capacity as well as the performance of the Bank cannot be totally ignored, rather the same should also be a germane factor in the matter of determination. According to Mr. Rao, the revision of pay scales being a periodic exercise in all spheres of public employment and the Act having conferred the power on the Union government by virtue of the second proviso to Section 17(1) of the Regional Rural Banks Act, 1976, it would be for the Central Government to exercise that power at reasonable intervals, depending upon the circumstances of the case and then come to a conclusion on consideration of all germane factors, as to what would be the pay structure of the employees of the Regional Rural Banks. Mr. Rao also submitted that the legislature having clearly indicated by use of the expression shall have due regard to in the second proviso to Sub- section(1) of Section 17, it would be obligatory for the Central Government to find out the pay scales of the employees of local authorities as well as the notified area of comparable level and status, and in this view of the matter, if the contenti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and management of the Regional Rural Banks, unequivocally indicates that the dispute related to pay, salary, other allowances and other benefits payable to the employees of the Regional Rural Banks. The said tribunal having considered the dispute raised and having determined the same and that determination having been given effect to by allowing the pay structure of the employees of the nationalised commercial banks as it stood on the date of the acceptance of the recommendations of the award of Justice Obul Reddi, it is only logical that as and when the pay structure of the employees of the nationalised commercial banks get changed, the same must be given effect to in respect of the employees of the Regional Rural Banks. According to Mr. Thakur, Obul Reddi Tribunal having held that the employees of the Regional Rural Banks are entitled to claim parity with the employees of the nationalised commercial banks in the matter of pay structure, if there is no pay revision of the employees of the Regional Rural banks notwithstanding such revision in case of employees of the nationalised commercial banks, the decision of the tribunal to maintain parity would be meaningless and the finality ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reddi Tribunal, but the tribunal positively came to the conclusion that the said financial capacity cannot be a germane factor in determining the pay structure of the employees of the Regional Rural Banks and then decided that there should be a parity between the employees of the nationalised commercial banks and the employees of the Regional Rural Banks. This being the position, it is futile for the employer-management as well as the Govt. of India to contend that the pay structure of the employees of the Regional Rural Banks could be revised only after due consideration by the Govt. of India under proviso to Sub-section(1) of Section 17 and after passing of any order thereunder. According to Mr. Thakur, such view of the matter would keep the dispute pending notwithstanding the resolve of the dispute by a tribunal appointed by the Govt. of India itself and notwithstanding the fact that the Government of India and the employer- management did accept the recommendations of the tribunal and gave effect to the said decision. Mr. S.K. Dholakia, the learned senior counsel, appearing for the petitioners in Transfer Petition No. 403/99, filed on behalf of All India Regional Rural Bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roached this Court by filing petition under Article 32, voicing a grievance with regard to their salary structure and remuneration and claiming equal pay for equal work and industry-cum- region formula basis and wanted a writ of mandamus to the Union of India, the Central Government itself chose to appoint a tribunal, who was none else than a Chief Justice of a High Court and the Government itself decided that the decision of such tribunal would be final and binding on the parties, with the obvious object that the controversies would be resolved once for all. This is apparent from para 1.01 of the award of Justice Obul Reddi. The very nature of the dispute was such that it cannot be limited to any specified period and on the other hand, it must be for all times to come. This being the position and the tribunal having considered the grievances of the parties and the respective stand of the parties for over a period of two and a half years and having given its findings and holding that the employees of the Regional Rural Banks are entitled to claim parity with the employees of the nationalised commercial banks, it would be a travesty of justice, if such parity is maintained on the da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce, according to Mr. Dave for non-maintaining the parity at any point of time would grossly violate the decision of the tribunal and as such cannot be sustained by this Court. Mr. Dave also contended that the dispute having been resolved by an adjudication of a tribunal, the issue may not be allowed to be re-opened, unless there is material change in the circumstances and in fact there has been no change in the circumstances. Mr. Dave contends that the dictionary meaning of the word parity being equality, it is unthinkable that the so-called parity which had been maintained w.e.f. 1.9.87 would be given a go-bye by taking recourse to the exercise of power under proviso 2 to Sub-section(1) of Section 17 and even if such power exists, then that power has to be exercised in effectuating the award and in not contravening the award. In this view of the matter the judgment of the Kerala High Court, according to Mr. Dave, need not be interfered with and the pay structure as is available to the employees of the nationalised commercial banks could be given to the employees of the Regional Rural Banks. According to Mr. Dave, non-implementation of the benefits which the employees of the natio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith regard to the performance of the regional rural banks, Mr. Sanghi placed before us the letter of the Minister of State (Finance) to a Member of Parliament, showing deep appreciation for the role played by the Regional Rural Banks in all its twelve thousand branches in the country at that point of time and Justice Obul Reddi Tribunal did take note of the said letter and referred to in paragraph 4.239 of the award itself. According to Mr. Sanghi, the High Court of Kerala in issuing mandamus and the learned Single Judge of the Karnataka High Court in striking down the appointment of a fresh Committee, have taken the correct decision and as such the Civil Appeals filed by the South Malabar Gramin Bank should be dismissed. Mr. Jitendra Sharma, the learned senior counsel whose application for intervention has been allowed, appearing for All India Gramin Bank Employees Association, contended that the bipartite settlement between the management and the employees of the nationalised commercial banks are settlements relating to entire banking industry, such settlements are entered into under Section 18 of the Industrial Disputes Act. Having regard to the manner in which the dispute be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... April, 1980 to all the Chairmen of the Regional Rural Banks in the country, deciding the pay-scales of the employees of the said Regional Rural Banks in exercise of power under the second proviso to Sub-section(1) of Section 17 of the Regional Rural Banks Act. The Government of India issued another similar communication by letter dated 5th of February, 1981. The grievances of the employees of the Regional Rural Banks was taken up on the Floor of the Parliament by some Members of the Parliament and Professor Madhu Dandavate had brought a private Bill to amend Section 17 of the Act. The Employees Association and the Finance Ministry had several discussions on the problem, but yet as the employees were not satisfied with the decision of the Union Government, they approached the Court under Article 32. The Union Government as well as the Reserve Bank of India were averse to give parity in the matter of pay scales and allowances between the employees of the Regional Rural Banks and the employees of the Nationalised Commercial Banks. The tribunal of Justice Obul Reddi summarized the pleadings in chapter I, indicated the evidence in chapter II and datas, particulars and information furni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yees of rural branches of commercial banks have a common object, common purpose, common interest and community of action. Their duties and functions are similar and they perform the duties in concerted manner for the economic betterment of the weaker section of the society, thus contributing their own share towards the achievement of the national objectives as envisaged in the preamble of the Constitution and the Directive Principles of the State Policy. The fact that employers are different, should not obsess ones mind in applying principles of equity and justice. The tribunal further held: It is crystal clear that the equation of posts under the second proviso to Sec.17(1) of RRB Act, has not been made taking into consideration or account the functions and duties of a B.D.O.or other employees of State Government and duties of the RRB employees. The most relevant factor to be considered while equating posts is the similarity of functions and duties in a comparable department or industry. Without regard to the apparent dissimilarities, the Central Government erred in the matter of equation of the posts. The pay structure determined should have nexus or relation to not only th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry to quote the other findings of the tribunal in its award. Be it be stated that pursuant to the decision of the award and in accordance with the directions of the tribunal that the award should be given effect to with effect from 1.9.1987, the RRB employees got the benefit of the payscales and other allowances as was prevalent in the year 1987 for the employees of the Nationalised Commercial Banks. Bearing in mind the nature of dispute that was referred for the adjudication of the tribunal and the findings arrived at, we will have to answer the contentions raised in these appeals. But before embarking upon the said exercise, it would be relevant to notice that the Union of India itself had filed an Interlocutory Application in this Court for certain directions and it was averred therein:- 11. That the Central Government is very much alive to the need of wage revision in RRBs and is of the opinion that a wage revision in RRBs is long overdue. The setting up of Mahalik Committee in November, 1996 and suo-moto filing of an alternative package to this Honble Court in May, 1999 is the testimony to the concern and responsibility felt by the Central Government. That it was in this co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he contentions raised by the learned counsel for the parties, the first question that arises for consideration is whether the award given by Justice Obul Reddi and accepted by the State Government and given effect to, can be construed to mean that the pay scales and other emoluments of the Regional Rural Bank employees would stand automatically altered, as and when the pay structure of the employees of the commercial banks get revised, on the basis of the so-called bipartite settlement between the employer and the employees of those commercial banks? The award no where indicated this course of action nor could it have indicated so, in view of the provisions of the Regional Rural Banks Act, conferring specific power on the Central Government to decide the pay structure of the employees of the Regional Rural Banks. The second proviso to Section 17(1) of the Regional Rural Banks Act, 1976 reads thus: Provided further that the remuneration of officers and other employees appointed by a Regional Rural Bank shall be such as may be determined by the Central Government, and, in determining such remuneration, the Central Government shall have due regard to the salary structure of the emp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act and determines the same. If however, the Central Government fails to discharge its obligation as in the case in hand, which would result in gross disparity between the pay-scales of the commercial banks and the Regional Rural Banks, then a mandamus could be issued to the Central Government for performance of its duties and the Central Government would be bound to perform its duties, taking into account all germane factors, including the factor of the subsequent pay revision of the employees of the Nationalised Commercial Banks. The next question that arises for consideration is whether the financial condition of the Regional Rural Banks could be a vital consideration for the Central Government in determining the pay structure of the employees of the Regional Rural Banks? Both Mr. Rao, appearing for the bank as well as Mr. Salve, appearing for the Union of India had vehemently urged before us that the financial condition of the Regional Rural Banks is such that it would not be possible for the Union of India to give them the pay structure of the employees of the Nationalised Commercial Banks. In support of this contention, several decisions of this Court had been placed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... between the parties and that award of the tribunal instead of being challenged, has already been implemented. In The Hindustan Times Ltd., New Delhi Vs. Their Workmen, 1964(1) S.C.R.234, again an award of an Industrial Tribunal was subject matter of challenge before the Court. The dispute before the tribunal was in relation to the pay, dearness allowance, adjustments, leave rules, gratuity as well as the working hours and age of retirement. In considering the legality of the award and after referring to the earlier decision of the Court in Standard Vacuum Refining Co., which we have already noticed, this Court had observed the difference between the minimum basic wage and the fair wage and above the same, the living wage and it is in that context, the Court, no doubt had made the observations that their exist need of considering the problem on an industry-cum-region basis and on giving careful consideration to the ability of the industry to pay. But the aforesaid observations cannot be pressed into service in the case in hand, where the award of Justice Obul Reddi tribunal, unhesitatingly negatived the aforesaid stand of the employer and came to the positive conclusion after elabor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... structure of the employees of the Regional Rural Banks. We are afraid, this decision is also of no assistance to the contentions raised inasmuch as in the dispute between the employer and the employees which stood resolved by an award of the tribunal (Justice Obul Reddi), one of the contentions was whether the financial viability would be the sole criterion in deciding the wage structure of the RRB employees, which was point No. 10 for consideration before the tribunal and after an elaborate consideration of the relevant stand point as well as the evidence laid by the parties on the point, the tribunal ultimately observed: 4.239. Now we are dealing with a case of special nature concerning the employees of a banking industry claiming parity with the salary structure of employees of a sister banking industry, which alone is comparable in terms of duties, functions and responsibilities. The RRB Act places special emphasis on the development of rural economy by providing credit and other facilities to productive activities in the rural areas, particularly to small and marginal farmers, agricultural labourers, artisans and small entrepreneurs, and for matters connected therewith and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ented. In the aforesaid premises, it is a futile attempt on the part of the employer as well as the Union of India to re-agitate the dispute, which has already been resolved and has been given effect to. In our considered opinion, therefore, the aforesaid contention on behalf of the appellant cannot be sustained and it would no longer be open, either for the bank or the Union of India to raise a contention that in determining the wage structure of the employees of the RRBs, the financial condition would be a relevant factor. The next question that arises for consideration is, what is the meaning of the expression parity used by the tribunal in giving its award and indicating that the officers and other employees of the Regional Rural Banks will be entitled to claim parity with the officers and other employees of the sponsor banks in the matter of pay-scales, allowances and other benefits in paragraph 4.425 of the award of the tribunal. It may be noticed at this stage that on behalf of the employees, a claim had been made before the tribunal for application of the principle equal pay for equal work and that was negatived by the tribunal, but all the same the tribunal directed to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ermination of the pay structure of the employees of the Regional Rural Banks is nothing but an attempt to get over the effect of the grant of parity under Justice Obul Reddi Tribunal, is of great substance. It has to be borne in mind that the tribunal has devoted a considerable time and has considered all aspects of the dispute between the parties and the notification itself of the Union Government in appointing the tribunal, indicated that the decision of the tribunal shall be final and binding. In this view of the matter, the conclusions arrived at on different questions raised by the tribunal, cannot be assailed indirectly by taking recourse to a procedure either by the Union Government or by the Bank. Though, we have no hesitation in coming to a conclusion that the Union Government possesses the power to determine the pay structure in accordance with the second proviso to Sub-section(1) of Section 17 and, therefore, that power has to be exercised soon after any pay revision of the employees of the Nationalised Commercial Banks is effected and while exercising that power, the Union Government should try to maintain the parity between the pay structure of the employees of the Reg ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
