( 1 ) THE petitioner, an ex-officer of Air Force, joined service of the respondent as Assistant with effect from 10. 6. 1991. According to his conditions of service under the respondent, his last drawn salary under the Indian Air Force was protected and fixed at Rs. 1690/ -. There is no dispute about the fact the petitioner had graduated in law and he was, in fact, recommended for granting two advance increments on that count. However, the head office of the respondent company brushed aside the demands and the recommendations of the departmental heads by impugned letter dated 24th March 1992. ( 2 ) LEARNED counsel on both sides relied upon The General Insurance (Rationalization and Revision of Pay Scale and other Conditions of Service of Supervisory, Clerical and Subordinate Staff) Second Amendment Scheme, 1990, whereunder, inter alia, the following provision was made: " (1) GRADUATION INCREMENTS/allowance TO EMPLOYEES IN THE SCALE OF ASSISTANT: (a) An employee who is appointed or promoted to any post in the scale of Assistant and who has qualified as a Graduate of a recognized University on or after the 1st day of January 1973, and has not reached the maximum of the scale shall be granted two increments in the scale with effect from the date of publication of results of the examination, or the 1st day of _____ July, 1990, or the date of appointment in the scale of Assistant, whichever is later, provided he has not already received graduation increments or qualification pay for having qualified as such graduate or any advance increments on appointment, otherwise than by way of protection of emoluments granted to ex-Servicemen; provided that. . . . . . . . . . . . . . . . . . (b ). . . . . . . . . . . . . . . . . " ( 3 ) THE requirements of the above provision having been fully met by the petitioner, he was entitled to be granted two increments in the scale, immediately on appointment as a matter of right. The argument of learned counsel, Mr. Sandip C. Shah appearing for the respondent that it was the discretion of the management to grant or not to grant the so-called graduation increments as, in fact, it was in the nature of special allowance, has no legal basis or substance.
The argument of learned counsel, Mr. Sandip C. Shah appearing for the respondent that it was the discretion of the management to grant or not to grant the so-called graduation increments as, in fact, it was in the nature of special allowance, has no legal basis or substance. Plain reading of the aforesaid provision clearly entitled the petitioner to two advance increments over and above the minimum pay, which was protected for his being an ex-serviceman. The recommendations made by the local and regional offices to the head office of the respondent were based on proper understanding and consideration of the case of the petitioner and it was illegal for the head office to reject the demand and the recommendation without assigning any reason. It is clarified under the aforesaid scheme itself, the graduation increments/allowance payable to the employee in the scale of Assistant is not to be treated as part of basic salary. No other issue was raised or argued. ( 4 ) THEREFORE, the petition is allowed with the direction that the petitioner's salary shall be fixed from the date of his appointment in accordance with the aforesaid scheme notified by notification dated 6. 7. 1990 and the arrears due upon application of the scheme shall be paid to the petitioner as expeditiously as practicable but not later than 30th January 2010. Rule is made absolute accordingly with cost quantified at Rs. 5,000/-, which shall be paid by respondent no. 1 to the petitioner.