ANANDA Vs. KARNATAKA STATE FINANCIAL CORPN

JUDGEMENT

(1.) In these ten Writ Petitions, the Petitioners who are Assistants in the service of the Karnataka State Financial Corporation (hereinafter referred to as 'the Corporation') have sought for the issue of a Writ of Mandamus directing the Corporation to extend the benefit of Rule 8(1) read with Schedule -II of the Karnataka State Civil Services (Revised Pay) Rules, 1977 in the matter of fixation of their pay and to give them consequential benefits.

(2.) THE facts of the case in brief are as follows : The Corporation is a Statutory body constituted and established under the provisions of The States Financial Corporations Act, 1961 by an order of the State Government. Therefore, it falls within the definition of 'State' as defined in Article 12 of the Constitution and therefore, bound by the fundamental rights incorporated in Part III of the Constitution.

(3.) THE Governor of the State of Karnataka promulgated the Karnataka Civil Services (Revised Pay) Rules, 1977 (in short 'the Rules') on 20th December, 1976. Under the said Rules, the pay scales of the State Government Servants were revised with effect from 1st January, 1977. The said Rules were promulgated on the recommendation of Narayan Pai Commission. Under the said Rules, there was rationalization of pay scales. One of the methods adopted was to merge the Dearness Allowance into basic pay. For the purpose of giving effect to the new Pay Scales under the Rules, a conversion table was incorporated in Schedule -II of the Rules. Rule -8 of the Rules provided that initial pay of Civil Servants as on the date on which the Rules came into force should be fixed in accordance with the corresponding payscale indicated in the II Schedule.