Case Note & Summary
The case involves appeals by the U.P. State Road Transport Corporation against a common judgment of the Allahabad High Court which confirmed Labour Court awards holding that certain drivers were entitled to retire at 60 years. The drivers were initially appointed in 1979 with a pay scale of Rs.185, which was less than Rs.200, placing them in Group D under the Service Regulations of 1981, entitling them to retirement at 60 years. However, in 1982, based on the Second Pay Commission recommendations, the Corporation revised the pay scale of drivers to Rs.335 and above, and by resolutions in 1984 and 1985, the Board of Directors placed drivers in Group C, fixing their retirement age at 58 years. The drivers were paid arrears and continued to draw Group C salary until retirement. The Labour Court and High Court held that the drivers were entitled to retire at 60 years as they were appointed before the revision. The Supreme Court, however, found that the pay revision was retrospective and the drivers had accepted the revised pay scale and Group C classification. The Court held that the age of superannuation for drivers placed in Group C is 58 years, and the appeals were allowed, setting aside the impugned orders.
Headnote
A) Service Law - Retirement Age - Classification of Employees - Regulation 8(1) and Regulation 37 of U.P. State Road Transport Corporation Employees (Other than Officers) Service Regulations, 1981 - The dispute pertains to the age of superannuation of drivers whose pay scale was revised from below Rs.200 to Rs.335 and above, placing them in Group C. The Supreme Court held that once the pay scale is revised retrospectively and the employee is placed in Group C, the retirement age is 58 years, not 60 years. The Court allowed the appeals of the Corporation and set aside the orders of the Labour Court and High Court (Paras 1-10).
Issue of Consideration
Whether the drivers of U.P. State Road Transport Corporation, whose pay scale was revised from below Rs.200 to Rs.335 and above, are entitled to superannuation at 60 years (Group D) or 58 years (Group C) under the U.P. State Road Transport Corporation Employees (Other than Officers) Service Regulations, 1981.
Final Decision
Appeals allowed. Impugned judgment and order of the High Court and the awards of the Labour Court are set aside. The age of superannuation of the respondent drivers is held to be 58 years.
Law Points
- Retirement age
- Classification of employees
- Pay scale revision
- Retrospective application of service regulations
- Group C and Group D distinction
