Summary
Employees absorbed into Eastern Coalfields challenged fixation of their basic pay below the amount drawn with their former employer. Their chosen absorption option protected both basic pay and total emoluments. Increased allowances could not justify reducing basic pay, particularly after an earlier binding judicial direction. The employer’s appeal was dismissed.
Issues
- Whether protection of total emoluments alone satisfied the absorption option when basic pay was reduced.
- Whether the employer could depart from the earlier final direction protecting basic pay.
Held
- The applicable absorption option intended protection of both basic pay and total emoluments. Fitment into the employer’s pay scales could not reduce basic pay merely because allowances produced higher overall remuneration. The dispute concerned correct fixation within the chosen scales, rather than a right to retain the former employer’s scale. (¶ 11–17)
- Decisions concerning protection of total emoluments on revision or absorption did not authorise reduction of basic pay under these particular absorption terms. The earlier Single Judge’s direction had attained finality and independently bound the employer. (¶ 15–19)
- Benefits must extend to all absorbed employees, including retirees and the legal representatives of deceased employees, within two months, with compliance reported to the Court. (¶ 19)
Result
Appeal dismissed without costs; pay-protection benefits directed within two months for absorbed employees, retirees and deceased employees’ legal representatives, with compliance reported.