ARVIND KUMAR SHARMA Vs. JAIPUR NAGAUR ANCHALIK GRAMIN BANK

JUDGEMENT

(1.) IN this writ petition, the petitioners have prayed for issuance of an appropriate writ, order or direction directing the respondent not to deduct dearness allowance for the salary of the employees/officers of Jaipur Nagaur Anchalik Gramin Bank (for short, the Bank) by impounding the same and, further directing the respondent to make payment to the employees/ officers of the amount so far impounded.

(2.) BRIEFLY stated the facts of the case are that petitioner No. 1 is an employee of Jaipur "nagaur Anchalik Gramin Bank and petitioner No. 2 is the Union which represents the majority of the employees employed on different posts in the service of Bank all over Rajasthan and it represents the interest of the member employees of the Bank. It is stated that petitioner No. 2 is a Union registered under the Trade Union Act, 1926. It is further stated that the Bank is a Regional Rural Bank established under sub-section ( 1) of Sec. 3 of the Regional Rural Banks Act, 1976. The respondent Bank is a bank sponsored by the United Commercial Bank which is a nationalised Bank. It is also stated that the Regional Rural Bank i. e. respondent Bank is an agency or instrumentality of the Government and is a State within the definition of Art. 12 of the Constitution of India. The case of the petitioner is that the employees/officers are governed by the provisions of various legislation, including the Payment of Wages Act, 1936 and that pay scale and payment of dearness allowance to Bank employees/ officers are governed by the State Government's rules and circulars issued from time to time. The case of the petitioners is that whenever there is an increase in dearness allowance, the Bank has issued circulars from time to time, whereby arrears of Dearness Allowance have been impounded. The petitioners have referred to Circulars dated 23rd July, 1984, 5th February, 1985 and 12th January, 1988. Vide Circular dated 23rd July. 1984, it was directed that though the revised rates of Dearness Allowance are applicable from 1st August, 1983, the arrears of increase in the Dearness Allowance from 1st August, 1983 to 31st May. 1985 have been impounded. However, a direction was made to pay arrears of increase in Dearness Allowance to the officers/employees for the month of June, 1984 and prepare salary for July 1984 at the revised rates, as per the schedule given in the said Circular. Similarly in the Circular dated 5th February, 1985, it was stated that though, the revised rates of Dearness Allowance are applicable as from 1st August, 1984, arrears of increase in Dearness Allowance from 1st August, 1984 to 31st Jan. , 1985 have been impounded. It was directed that the arrears of Dearness Allowance from 1st August, 1984 to 31st Jan, 1985 shall be calculated by the Bank as per the revised rates. In the Circular dated 12th January, 1988 it was stated that consequent upon the revision of the Dearness Allowance admissible to the State employees the Bank has also decided to revise the Dear-nes Allowance admissible to Banks officers/employees with effect from 1st July, 1987. However, it was stated that the amount of arrears of increase in Dearness Allowance with effect from 1st July. 1987 upto 31st December, 1987 shall be impounded by the Bank. The arrears of increase of Dearness Allowance from 1st July 1987 will be prepared by the Branches and the said amount shall thereafter be transferred to the head office. In short the case of the petitioners is that impounding by the Bank of the Dearness Allowance as per the above referred circulars is without any authority of law and also against the provisions of the Payment of Wages Act and, therefore, the petitioners are entitled to seek the direction as prayed in the writ petition.

(3.) THIS proviso gives certain powers to the Central Government with regard to determination of the remuneration of the officers and other employees appointed by the Regional Rural Bank and it further provides that in determining such remuneration the Central Government shall give due regard to the salary structure of the State Government and local authorities of comparable level and status in the notified area. There is no dispute between the parties that by virtue of various circulars the State Government while granting increase in Dearness Allowance to officers and employees of the State Government also directed that the amount of increase in DA with effect from a particular period shall be credited to General Provident Fund Account of the employees and, thus, it being so, the arrears of DA of a particular period have been impounded, it is also clear from the various orders referred to above that the Bank has issued circulars directing for impounding of the Dearness Allowance. It is also clear from the orders of the Central Government that there are directions for impounding DA if the same is done in the case of the employees of the State Government on comparable basis. After perusing the various circulars and orders of the State Government and the order of the Central Government, dated 12th January, 1984, we are satisfied that the impounding has been made by virtue of the directions issued by the Central Government and the Central Government derives its power under Section 17 of the Regional Rural Bank Act, 1976. In view of the powers conferred upon the Central Government, the Regional Rural Banks are well within their authority to abide by the Circulars and orders issued by the Central Government. While issuing the orders, the Central Government has taken into consideration the salary structure of the employees of the State Government of comparable level. There is, thus, no illegality in the impounding of the D. A.