DURGA NARAYAN Vs. CHAIRMAN, DENA BANK

JUDGEMENT

(1.) THE Government of India, by a resolution dated July 19, 1973 appointed a committee consisting of five members to standardise pay -scale, allowances and perquisites of the Officers in the 14 Nationalised Banks. The committee came to be popularly referred as the 'Pillai Committee' named after its Chairman. It submitted its report in May 1974. The Government appointed a Study Group of Bankers in September 1976 to make suggestions for the implementation of the report. The Committee suggested certain modifications in the method of implementation and submitted its further report in February 1977, and the Government adopted the report as modified by the Group of Bankers.

(2.) THE question of implementation of the report as adopted by the Government was discussed by the Indian Bank's Association with various representatives of all the Confederations of Banking Officers Organisation; and the Secretrary of this Association addressed a private and confidential letter to Chief Executives of various Banks including Dena Bank on March 15, 1978 that the Government has desired to bring Pillai Committee's recommendations in force latest with effect by May 1978. The Chief Executives were, therefore, advised to ,take steps to introduce the new scales of pay and allowances as per the Committee's report and to make appropriate fitment in the emoluments of the existing officers with effect from 1st May, 1978, or even earlier if so desired, after discussion with the organisations representing the Officers. This letter further informed the Chief Executives about the desire of the Government that all new appointments on or after 1st May, 1978 should be on the terms and conditions contained in the Pillai Committee Report.

(3.) IT is in the aforesaid background that the Dena Bank (hereinafter the Bank) offered to appoint the appellant, pursuant to his application, in the Bank as Economic Officer in the pay scale I as laid down by the Pillai Committee, which is Rs. 700 -1800, with other allowances, perquisites and benefits as per the Pillai Committee recommendations. This offer is dated 26th May 1978 and states that the present emoluments would be as under: - Basic Pay Rs. 700.00 dearness Allowances Rs. 311.00 Rs. 1011.00