UNION OF INDIA Vs. V RAMADASS

JUDGEMENT

(1.) - Heard learned counsel for the parties. Delay is condoned. Special leave is granted.

(2.) This appeal by the Union of India is directed against the judgment of the Central Administrative Tribunal dealing with the claim of special allowance made by the present respondents. The respondents are welders employed in Armour Welding in Heavy Vehicles Factory, Avadi, Madras. In 1969, a decision was taken to gra it special allowance to the Armour Welders, calculated at 20% of their pay provided they pass the requisite trade test. By letter dated 25-9-1975 a decision was taken to calculate the special pay on the basis of the scales recommended by the Third Pay Revision Commission. This was indicated to be an interim measure pending the adoption of piece rate system for calculating the special pay. The piece rates system, however, was never adopted. On 19-2-1991, special allowance was directed to be paid at a flat rate. This decision which has been applied with effect from 19-2-1991 is not in dispute herein. The controversy between the parties is confined to the period from 1-1-1986 to 18-2-1991. The respondents' demand was that in as much as their pay scales have been revised from 1-1-1986, the special allowance should be calculated and paid on the basis of the pay scales enforced from 19-2-1986. Since the said demand was not acceded to, they moved the Central Administrative Tribunal with an application which has been allowed by the impugned judgment.

(3.) The learned Additional Solicitor General appearing for the appellant-Union of India contended that the letter of 1975 referred merely to the scales recommended by the Third Pay Revision Commission and not to the Fourth Pay Revision Commission's recommendations and that therefore the respondents' cannot base their demand on the said letter, He has also emphasised the interim nature of the direction in the said letter and urged that in any event the respondents could not be allowed their special pay at a rate higher than that which has ultimately been given to them in 1991.