An appeal has been filed on behalf of the Divisional Superintendent, Pakistan Railway, Multan Cantonment against the judgment dated 5th June 1974 of the learned Authority set up under the Payment of Wages Act, 1931, whereby the respondents who are mates of Pakistan Western Railway, Engineering Branch were awarded wages of Rs. 264 each allegedly deducted from their pays from 1st March 1973 to December 1973 with the direction that they were entitled to 40% increase of their basic pay in the consolidated scales of pay enforced prior to 1st February 1972 to adjust them in the National pay scales enforced with effect from the said date. It has been maintained in the memorandum of appeal that the aforesaid directions passed by the learned Authority are against law and facts of the case and that the petitions made by the respondents to the learned Lower Court were not competent for want of jurisdiction. In view the objections taken by the appellant the respondents petitioners before the learned Authority the following issues were framed at the Trial Stage.
(1) Whether the pay scale No. 1 of the petitioner is equivalent to the N. S. P. No. 2 and accordingly if they are entitled to increase of 40% or 30% of the pays already drawn by them.
(2) in the course of the proceedings one more issue was adopted regard--ing the maintainability of the petition at the request of the appellant vide order dated 5th April 1974.
2. Prior to the enforcement of National pay scales the respondents as gang mates in Pakistan Western Railway, Multan Division, were drawing their consolidated pay in the pay scale of Rs. 70-1- -85+Rs. 7.50 per month while pay scale of Keymen and Gangmen Junior to them was Rs. 70-1-85 plus Rs. 5 per month and Rs. 70-1-85 respectively. Accordingly to Notification No. 1(2)-NG-Imp/71, Government of Pakistan, Ministry of Finance dated 3rd March 1972, Part 1(1) the National pay scales were to be fixed as given in the schedule annexed to the Notification wherein no addition to or, alteration in the said scale could be made except with the approval of President. According to the schedule read with percentage increase formula given under part I (c) (11) of the Notification in case the pay of Civil employer is to be adjusted in National scale of pay Nos. 1 and 2 an increase of 40% would be allowed subject so a minimum of Rs. 20 and a maximum of Rs.
40. In case the pay is to be fixed in National pay scale Nos. 3 and 4 the percentage increase on the existing basic pay was allowed to be 30% subject to minimum of Rs. 20 and a maximum of. Rs.
40. The National pay scale No. 1 is Rs. 100-2-116/EB-3-140 was to be given against the posts the maximum of the existing scale of which (called revised prescribed scale) did not exceed Rs. 100 N. P. & No. 2 i e. 110-3-152/EB -4-160 was allowed against the post the maximum of the existing scale of which exceeded Rs. 100 but did not exceed Rs.
120. The National pay scale No. 3 is Rs. 120-3 -15Ca/EB-5-180 was allotted to the posts the maximum of the existing scale of which exceeded Rs. 12.0 but did not exceed RR.
140. A notification was issued by the Railways Department as contained in their Gazette, dated 20th October 1972 according to which all cases of anomalies were to be referred for scrutiny to the anomalies committee to be set up by the Railway's authority and that authority in its turn was to forward the case to tile Central anomalies Committee for final decision. In the meanwhile a representation was made on behalf of the Railway workers of the category of the respondents to adjust their pay scales according to the original notification fixing the national pay scales and in accordance with the case made out by them. As a result of the said representation the anomalies Committees established by the Railway Administration, the fixation of the pays of the respondents was found to be free from any anomaly. In a letter of the Railway Board No. E-73-PC-1/7 105, dated 1st November 1973, to Vice-Chairman, Pakistan Railway Lahore, it was directed that action may be taken in this behalf of the Railway administration in pursuance of letter No. 561-E/147/1 (E-policy, dated 22nd November 1973. The relevant directive g1ven in regard to the fixation of pay of Keymen and Head Trollymen in N. P. scales is as follows :-- "I am directed to state that the representation from united Union of Pakistan Western Railway workers for improvements etc. in the National scales of pay of the category of Keymen, Head trollymen and mates of branch lines, as also of the Cabinmen/Shunting Master, Pilot Jamadars and the Mistries of Loco Sheds and Shops alongwith their recommendations of the anomalies Committee, have been given due consideration. As there is no anomaly involved, a representation made on behalf of the workers cannot be accepted."
3. Later on a consolidated statement including the record, made by the anomalies Committees was forwarded to the Central Government the Railway Administration for the approval of the President as a result of which Railways Hoard Lahore Notification No. E-72-PC-1/2-11 dated 22nd July 1972 was published in the Gazette, Extraordinary of the Pakistan Railway dated 20 October 1972 with approval of the President. According to this Notification in part 1(c) it was laid down as follows:-
(c) In the case of the existing Railway servants is those who have been in the non-gazetted service since before 1st March 1972, initial pay in the scales of pay of the post held by them on the 1st March 1972 will be fixed at the stage equal to or if there be no such stage at the stage next above, the aggregate of the following, viz :
(1) The existing basic pay, i.e. the basic pay that would have been admissible on the 1st March 1972, but for the issue of this Notification.
(2) An amount of increase, to be determined in accordance with the percentage increase formula given below :- PERCENTAGE INCREASE FORMULA th S. No.National scales of pay in which pay is to be fixed.Percentage increase of the existing basic pay.
1. 1 and 240 % subject to minimum of Rs. 20 and maximum of Rs. 40.
2. 3 and 430 % subject to a minimum of Rs. 20 and maximum of Rs. 40.
Note.-(a) Where the aggro gate of (t) and (ii) above exceeds to the maximum of the relevant national pay scale, the excess will be allowed as a personal pay, subject to subsequent reduction under rule 2031 (F R 37) R.
11. Stall will continue to draw the same amount of emoluments consisting of the basic pay plus interim relief and. ad hoc relief drawn by them before 1st March 1972, even if the basic pay as fixed in the National scales is less. The difference between the emoluments drawn before 1st March 1972, and the pay fixed in the National scales of pay on 1st March 1972 would hoe treated as personal pay and will be adjusted in subsequent increments under F. R. 37.
4. For the sake of convenience a "Ready Reckoner" for conversation of the existing pay in the consolidated scales into the National scales has been prepared by the Railway Board and is available for reference.
5. According to the percentage increase formula notified above the respondents as mates Pakistan Western Railway are ordinarily entitled to 40% increase of their existing basic pays which are less than Rs. 100 in each case and their pays need to be adjusted in National pay scale No. 1 which is Rs. 100--2-116/SB--3-140. It may be pointed out here that according to the paragraph 14 of the Notification of Gazette of the Pakistan Railway, dated 20th October 1972 it has been conceded that the incumbents of the various posts carrying non gazetted. pay scales will be entitled to automatic promotion to the next higher scales and the rider formerly imposed on the promotions in regard to earning good annual reports was withdrawn. It was also assured in the same Notification vide paragraph 4 that the basic pays of the employees in the existing prescribed consolidated scales of pay were to be increased by varying percentages allowing maximum benefits to the lowest paid staff.
6. In the background of all those circumstances the respondents' pay could not be fixed in N. P. S. No. 3 which was allowed 30%, increase and not 40% increase of existing pay scale. According to the Pakistan Western Railway Notification dated 20th October 1972 at page 37 (copy-R-1) their scales being rightly equated in column No. 4 of the Schedule in the National pay scale No. 1, they were placed in N. P. S. No. 3 in the remarks columns with the result that their pays were calculated with 30% increase instead of 40%. It is maintained on behalf of the appellant that as mates rank senior to gangmen and Keymen who according to their pays ware adjusted in N. S. P. Nos. 1 and 2 they were given senior scale No. 3 which falls next to scale Nos. 1 and 2. The contention contains no force as the calculation made in the remarks column can scarcely be reconciled with the percentage increase formula admitted in favour of the respondents in unequivocal terms in the body of the Notification dated October 1972, as well as In the original Notification published in Pakistan Notification Gazette of 8th March 1972.
7. No doubt N. P. S. No. 3 carries a better scale than N. P. S. Nos. 1 and 2. yet by calculating the respondents' pay according to the percentage increase formula allowing them 40%. increase of pay they are better benefited in that, their pay is fixed at Rs. 147 whereas their pay has been fixed at Rs. 138 in N. P. S. No 3. The principle of automatic promotion from one scale to the other stands to the advantage of the respondents even if their pay is fixed at a stage better than the maximum of the lower scale. Now there can be no Question that the fixation of their pays has been fully assured under the formula in the manner they can be put to the best of their benefits. Accordingly it must be taken to be within their option to get their pays fixed in the manner they are better benefited.
The respondents being fixed in N. P. S. No. 1 get a pay of 147 according to the ordinary calculation.
Their pays will be fixed at this stage on at March 1972. Since the rule of automatic promotion comes into play in favour of the respondents they will cross over to the scales Nos. 1 to 2 and as the next stage available to the respondents in that scale being Rs. 149, this would be their substantive pay, on 1st March 1972. Under the circumstances the respondents are held entitled to get their pays fixed at Rs. 149 each in N. P. S. No. 2 with effect from 1st March 1972 and to get their future emoluments accordingly.
8. As regards the maintainability of the petition before the learned Authority there can be hardly any difference of opinion that they sought a redress relating to correct fixation of their pays in N. P.
S. as allowed them under the service rules and they were denied their due emoluments the appellant i.e. Railway Administration, and on that mode they chose the right forum to get their wages ascertained under the law and compensate for the deducted wages. The learned counsel for the respondents has relied in this behalf on Shoukat Ali and others v. Islamic Republic of Pakistan through the General Manager. North Western Railway, Lahore (1900 PLC 59) in which it was held that the definition of wages given in the Payment of Wages Act makes it clear that the authority must decide as to what was the remuneration and was to be payable to a person employed in respect of his work done in such employment. The plea that the authority has no jurisdiction to entertain an application on that point cannot be sustained and if it is adopted it will defeat the Act itself and make it absolutely ineffective. In the circumstances there being no force in appeal it is dismissed.