State Bank Of India And Ors vs K.P. Subbaiah And Ors

The Supreme Court ruled that the pay fixation for ex-servicemen employed by the State Bank of India must adhere to the principles established in the Fourth Bipartite Settlement, which was effective retrospectively from 1.7.1983. The Court held that the employees' pay should be revised on a stage-to-stage basis according to the new scales, ensuring protection of their last drawn pay and allowances from military service. The judgment upheld the High Court's decision, thereby affirming the employees' entitlement to proper pay fixation as per the applicable settlements.