Holding

The Fourth Pay Commission recommendations must be fully implemented, and interim reliefs do not confer any additional entitlement beyond the new pay scales; employees must receive pay parity with central government employees.

Summary

The Delhi Transport Corporation (DTC) Workers' Union filed a writ petition under Article 32 seeking a mandamus directing DTC to implement, from 1 January 1986, the Fourth Pay Commission recommendations for its employees, as per Office Orders dated 15 September 1983 and 7 February 1984. The Union argued that employees were entitled not only to the new pay scales but also to the interim reliefs ('head start') they had received during the interregnum between the old and new scales. DTC contended that any interim benefits would merge into the new scales and that granting additional payments would create a discriminatory advantage over central government employees. The Court examined the language of the 7 February 1984 order, noting that it intended to maintain parity with central government employees and that interim benefits were only to bridge the period before the new scales took effect. It held that the overriding consideration was the full implementation of the Fourth Pay Commission scales, and that employees should neither be paid less nor more than their central government counterparts, with no extra entitlement from the interim reliefs. Consequently, the petition was dismissed without any further order.

Issues considered

Whether DTC employees are entitled to retain interim reliefs ('head start') in addition to the pay scales recommended by the Fourth Pay Commission.
Whether the implementation of the Fourth Pay Commission recommendations must ensure parity with central government employees, precluding any additional payments.
Interpretation of the Office Orders dated 15 September 1983 and 7 February 1984 regarding the merger of interim benefits into the new pay scales.

Legislation cited

Constitution of Indias. Article 32

Subjects

Fourth Pay Commissioninterim reliefhead startpay scalesDelhi Transport CorporationArticle 32Writ of mandamusgovernment employee parity

Judgment

D.T.C. WORKERS' UNION & ORS.
A v.
DELHI TRANSPORT CORPORATION ' , .•.
APRIL 2, 1991

B [T. KOCHU THOMMEN AND R.M. SARAI, JJ.]

Pay Scales-D. T.C. employees-Implementation of recommen- ,•'
dations of Fourth Pay Commission-:-Office Order No. DGM(IR)/84/90 ~
dated 7.2.1984-Construction of. ,_,.,"

c The D. T.C. Workers' Union and some of its members,have filed r
this Writ Petition under Article 32 of the Constitution praying, as the ~
main relief, for issue of a Writ of Mandamus or Direction to the ,l_ 1

respondent-Corporation to implement w.e.f. 1.1.86 the recommenda- r·
I
tions of the Fourth Pay Commission as approved by the Government of
India to the Central Government employees as per the undertakings "' ,:.,
D given to its employees vide Office Orders No. PLD-IX (465)/83/10589
dated 15.9.1983 and DGM(IR)/84/90 dated 7.2.1984. Relying on the ....
undertakings given in the said Office Orders it has been contended on
behalf of the petitioners that the D.T.C. employees will be entitled not
only to new pay-scales as recommended by the Fourth Pay Commission
to the corresponding categories in the Central Government but more in
E the shape of interim reliefs which they had enjoyed during the period of
interregnum between their original pay-scales and the new pay-scales.

On behalf of the Co11>0ration it has been submitted that all the
reliefs which its employees had earlier received, be it additional pay-
ment in the nature of interim relief in the sum of Rs.SO or Rs. 70 as the
F case may be, or the reviSed interim pay-scale, pending adoption of the
new scale recommended by the Fourth Pay Commission, would merge
into the new scale and they would have no entitlement to any additional 1
payment as any such differential treatment will be discriminatory and,,A-.~/ '"t·
therefore, unsustainable. ~

G '
Disposing of the Writ Petition, this Court, r
'
HELD: The overriding consideration behind the Order dated
7 .2.1984 is that, as in the case of all Government employees, so in the ,
case of the Corporation employees, the new scales recommended by tb0
Fourth Pay Commission should be fully implemented. Whatever may
H be the amounts actually payable in terms of the interim reliefs, the

984
WORKERS' UNION v. D.T.C [THOMMEN, J.] 985.

~ employees of the Corporation should neither be paid less nor more than
A
the Government employees in the corresponding categoties. [989C]

All employees, whether retained on the original pay-scale or
placed on the revised interim pay-scale during the period preceding
1.1.86, will be placed on the pay-scale adopted as per the recommenda-
tions of the Fourth Pay Commission in sucli a way that they will be B
fitted exactly in positions corresponding to their positions on the earlier
)'>-- pay-scales. But the corresponding positions in the new pay-scales will
naturally carry better emoluments, so as to maintain parity with the
Government employees in like categories. We have no doubt that the
-., recommendations of the Fourth Pay Commission will be fully imple-
mented in terms thereof. [9890-E]
c
ORIGINAL JURISDICTION: Writ Petition No. 320 of 1987.

(Under Article 32 of the Constitution of India).
D
Jitender Sharma for the Petitioners.

Kapil Sibal, Ms. Tamali Das Gupta, Ms. J. Wad and Mi.
R. Venkataramani (NP) for the Respondent.

The Judgment of the Court was delivered by
E
THOMMEN, J. This petition has been filed by the D.T.C.
_.... Workers' Union and some its members. The main relief sought by
them,-as contained in prayer (a), reads:

"Issue a Writ of Mandamus or -Direction to the respondent F
the Delhi Transport Corporation to implement w .e.f.
1.1.86 the recommendations of the Fourth Pay Commission
as approved by the Government of India to the Ce;ntral
Government employees as per the undertakings given to its
empk>yees vide Office Order No. PLD-IX(465)/83/10589
dated 15.9.1983 and DGM(IR)/84/93 elated 7.2.1984." G

The petitioners as well as the respondent, the Delhi Transport
Corporation, rely heavily upon the Office Order No. DGM(IR)/84i90
dated 7.2.1984 issued by the Deputy General Manager of the res-
pondent-Corporation, although they differ in their construction of
what it contains. We shall, therefore, read the whole Order; H
986 SUPREME COURT REPORTS [1991] 1 S.C.R. .

" ...... Before Interim Relief was announced by the Cent- ...,.
A ral Government for its employees to be paid w.e.f. 1.6.83,
the Wage Group constituted by the Government oflndia for
considering the demand regarding revision of pay-scales of
the employees of the Delhi Transport Corporation gave its
report recommending revision of pay-scales of all the Class
B III & IV employees as an interim measure pending receipt
of Fourth Pay Commission report. Thus the revised scales ~
themselves were in the shape of an interim relief. As in-
terim relief was announced by the Government for its emp-
loyees almost simultaneously some unions approached the
Management opposing the introduction of new scales and ~
asking for the interim relief as at the Government rates. It
c was explained to them that the revised scales have a greater
in built advantage as the benefit in some cases go even over
hundred rupees while interim relief for workers was fifty to ~
seventy rupees. However, an option was given vide circular
No. PLD-IX(465)/83/10589 dated 15.9.83 to the employees
D of the Corporation either to avail the benefit of interim
relief and retain the old pay scales or to avail the benefit i:>f
the revised pay-scales. In reference to the clarification
sought by the Unions, it was made asbolutely clear beyond
any ambiguity to the employees that-( 1) there is abso- _....
lutely no intention to de-link the DTC ·from the Central
Government pay-structure and DA pattern arbitrarily or
E
unilaterally; (ii) if the Fourth Pay Commission granted any
further interim relief or benefit before the final report,
such benefit will be available to the DTC employees; (iii)
the differential in the head start now g_iven in the pay-scales
will be maintained even while implementing the scales
F recommended by the Fourth Pay Commission and (iv) the
pay scales recommended by "the Working Group would be ...--.A-
enforceable for a period of four years or the receipt o(
report of the Commission whichever is earlier, It has
already been made amply dear that differential in "head
start" given in the revised pay scales wUI be maintained
even while impiementing the scales recommended by the
G
·Fourth Pay Commission. In fixation of pay in· the sca.0s to -.(
be recommended by the Fourth Pay Commission, the emp-
loyees coming over to the revised scales of pay will be given
due benefit of Central Government Interim Relief so as to
ensure that they are not at any disadvantage because of
H having opted for the revised scales now. For instance, if the
WORKERS' UNION v. D.T.C [THOMMEN, J.) 987

"-! pay of an individual in the pay-scale of Rs.260-400 drawing
A
a basic pay of Rs.260 per month who had opted for Interim
Relief at Central Government rates is fixed at Rs.310 p.m.
by adding Rs.50 as .Interim Relief to Basic Pay of Rs.260
whereas the pay of an employee who has opted for cor-
responding revised pay-scale of Rs.284-440 and is drawing
Basic pay of Rs.284 p.m. will be fixed at Rs.334 p.m. by B
adding Rs.SO to his Basic Pay of Rs.284. In this connection
our circular No PLD-IX (465) 83 dated 20.9.83 refers·.

It has been clearly shown in the above illustrations as

- -.#- to how the revised pay-scales will be beneficial to the emp-
loyees. It is opted that the employees will not be mis-led
now by any such interpretation which is being placed on the c
Ministry of Finance's O.M. of 28th November, 1983."
~
Referring to the concept of "head start" mentioned in the Order,
Mr. ~itender Shanna. appearing for the petitioners, submits that it
being the intention of the Corporation to protect the interim relief D
granted to the employees, nothwithstanding the recommendations of
the Fourth Pay Commission, the employees are entitled to the interim
relief, referred to as the "head start", in addition to the pay-scale
recommended by the Fourth Pay Commission. In other words, accord-
AIL_
ing to Mr. Sharma, the employees will be entitled not only to the new
pay-scale recommended by the Fourth Pay Commission, but more in E

- the shape of interim reliefs which they had enjoyed during the period
of the interregnum between their original pay-scale and the new pay-
scale.

Mr. Kapil Sibal, appearing for the respondent-Corporation, sub-
......_mits that all that the Order dated 7.2.1984 has intended to state is that F
the "head start" in the form of interim relief will not deprive the
employees of the full benefits of either the revised interim pay-scale,
i.e., the scale as revised during the interregnum, or the new pay-scale
. subsequently introduced as per the recommendations of the Fourth
Pay Commission. The employees had the option either to accept the
additional payment in the nature of an interim relief in the sum of G
Rs.50 or Rs.70 as the case may be, or the revised interim pay-scale
~/
which was itself in the nature of an interim relief, pending adoption of
the new scale recommended by the Fourth Pay Commission. But once
the employees are placed on the scale recommended by the Fourth Pay
Commission, all the reliefs which they had earlier received would
merge into the new scale and they would have no entitlement to any H
988 SUPREME COURT REPORTS (1991] 1 S.C.R.

additional payment. Any payment in addition to what the Fourth Pay
A
Commission recommended would place the employees of .the Corpo-
ration at an undue advantage in comparison -to the employees of the
Government in corresponding grade~. Any such differential treat-
ment, counsel points out, will be discriminatory and, therefore,
unsustainable.
B
Mr. Sharma, however, refers to the scales of pay relating to the
category of conductors, tailors, compositors etc. Their scale of pay
prior to June, 1983 was Rs.260-6-290-EB-6-326-EB-8-390-10-400. A
revised interim sc:ale was introduced on 1.6.1983, This scale was

c
Rs.284-8-340-10-440. ·On 1.1.86, a new scale was introduced on the
basis of the recommendations of the Fourth Pay Commission. That
scale is Rs.950-20-1150-EB-25-1500. This shows that, prior to
1.1.1986, an employee on the scale of Rs.260-400 as on 31.5.1983 had
the option either to remain on that scale and draw an additional allo-
-
wance or be placed on the revised interim scale of R_s.284-440. On
1. 1.1986 all employees in the category of conductors etc., came on the
D scale of Rs.950-1500 whether or not, prior to that date, they had, in
exercise of their option, remained on the original scale of Rs.260-400
with the additional allowances or been placed on the revised interim
scale ofRs.284-440. According to Mr. Sharma, the "head start" pro-
mised by the Corporation means the additional allmxances or revised
scales received by the employees during the interregnum, and such
E benefits have to be super imposed over the new scale of Rs.950-1500.
He further submits, insofar as none of the employees of the Corpora-
tion had opted to remain on the original scale with the additional
allowances, but had come on the revised interim pay-scale, all the
employees brought on the new pay-scale as on 1.1.86 are entitled to be
fitted with reference· to the total emoluments drawn on the revised
F interim scale.
··-i

A careful reading of the Order dated 7.2.1984 shows that certain
interim benefits were granted to the employees preceding the intro-
duction of the new pay-scale on the basis of the recommendations of
the Fourth Pay Commission. These benefits which were either in the
G nature of an additional payment or a revised -interim pay-scale were
intended to cover the period preceding the introduction of the regular.
pay-scale which came into effect on 1.1.86. The Order further .shows
that the Co~oration was to carry the same pay structure and DA
pattern as in the case of the Government employees in the correspond-
ing categories. All benefits granted· by the Fourth Pay Commission in
H the nature of interim reliefs were also to be made available to the
WORKERS' UNION v. D.T.C [THOMMEN, J.] 989

Corporation employees. The interim reliefs granted by the Corpora- A
tion in the nature of what is imprecisely referred to as "head start"
were to be maintained in implementing the scales recommended by the
Fourth Pay Commission. The figures worked out in the penultimate
paragraph of the Report indicate that whhher the employees were
retained on the original pay-scale with the additional emoluments by
B
way of interim relief or they had, as in the instant case, opted for the
revised interim scale, they should suffer no loss by reason of the option
they had exercised. But the overriding consideration behind the Order
dated 7 .2.1984 is that, as in the case of all Government employees, so
in the case of the Corporation employees, the new scale recommended

- by the Fourth Pay Commission should be fully implemented. What-
ever may be the amounts actually payable in terms of the interim
reliefs, the employees of the Corporation should neither be paid less
nor more than the Government employees in the corresponding
categories.
c

This means that all employees, whether retained on the original
D
pay-scale or placed on the revised interim pay-scale during the period
preceding 1.1.86, will be placed on the pay-scale adopted as per the
recommendations of the Fourth Pay Commission in such a way that
they will be fitted exactly in positions corresponding to their positions
on the earlier pay-scales. But the corresponding positions in the new
pay-scales will naturally carry better emoluments, so as to maintain
E
parity with the Government employees in like categories.

- In the circumstances, we have no doubt that the recommenda-
tions of the Fourth Pay Commission will be fully implemented in terms
thereof. Mr. Kapil Sibal, appearing for the Corporation, assures us
that it will be so done. Mr. Sibal's submission is recorded. In the
circumstances, no further order is required. The writ petition is F
• - accordingly disposed of. No costs.

R.N.J. Petition disposed of.