Case Note & Summary
The dispute arose between the Rajasthan State Electricity Board and its employees regarding the entitlement to pay-scales for Meter Readers. The Board had entered into a settlement on February 22, 1972, which was to remain in force until March 31, 1974, revising pay-scales effective from April 1, 1969. A second settlement on December 2, 1972, aimed to clarify ambiguities in the first settlement, categorizing Meter Readers into two grades. Employees appointed before December 6, 1972, successfully challenged the second settlement, leading to the High Court granting them pay-scale No. 3. However, employees appointed after April 1, 1974, contended they were entitled to the same pay-scale based on the first settlement. The Board argued that the first settlement had expired and that the second settlement had clarified the pay-scales. The High Court ruled in favor of the employees, but the Board appealed to the Supreme Court. The Supreme Court held that the first settlement was clarified by the second settlement, and the Board had the authority to appoint Meter Readers in Grade II after April 1, 1974. The court found that the appointment orders clearly stated the employees were in pay-scale No. 2, and thus they were not entitled to pay-scale No. 3. The court set aside the High Court's judgment and dismissed the writ petitions, directing the parties to bear their own costs.
Headnote
A) Employment Law - Pay Scale Entitlement - Employees appointed after 1.4.1974 not entitled to pay-scale No. 3 - Electricity (Supply) Act, 1948, Section 79(c) and (k) - The court held that the first settlement was clarified by the second settlement, and the Board had the authority to appoint Meter Readers in Grade II after 1.4.1974, thus denying entitlement to pay-scale No. 3 for those appointed after this date (Paras 290B-C).
Issue of Consideration
Whether the employees appointed after 1.4.1974 are entitled to pay-scale No. 3 or pay-scale No. 2.
Final Decision
The Supreme Court allowed the appeals, set aside the judgment of the High Court, and dismissed all writ petitions, directing the parties to bear their own costs.
Law Points
- Industrial Disputes Act
- 1947
- Electricity (Supply) Act
- 1948
- Rajasthan State Electricity Board Employees (Emoluments) Regulations
- 1978
- pay scale entitlement
- settlement validity
- statutory regulations


