3. Appellate decision to have effect subject to the modifications recommended by the Bank Award Commission.- (1) The appellate decision shall have effect as if the modifications recommended in Chapter XI of the Report of the Bank Award Commission, dated the 25th day of July, 1955, had actually been made therein, and the appellate decision as so modified shall be the decision of the Appellate Tribunal within the meaning of the Industrial Disputes (Appellate Tribunal) Act, 1950 (48 of 1950), and the award shall have effect accordingly.

(2) Notwithstanding anything contained in sub-section (1), the recommendations in Chapter XI of the Report of the Bank Award Commission in relation to the banking companies incorporated in the former State of Travancore-Cochin specified in that Chapter shall be modified and shall be deemed to have been modified—(a) with effect from the 1st January, 1955, in relation to the C Class banks known as the South Indian Bank Limited, Trichur, and the Catholic Syrian Bank Limited, Trichur, as if--

(1) in clause (1) of the said recommendations-- (i) under the heading `C Class', after the entry (viii), Travancore Bank', the entries `(ix), South Indian Bank, Trichur' and `(x), Catholic Syrian Bank, Trichur', had been inserted; (ii) items (i) and (ii) under sub-clause (b) had been omitted; and

(2) in clause (2) thereof, after the words `Travancore Bank', the words `the South Indian Bank, Trichur, and the Catholic Syrian Bank, Trichur' had been inserted; and (b) with effect from the 1st January, 1956, in relation to the C Class banks known as the Palai Central Bank Limited, Palai, and the Travancore Forward Bank Limited, Kottayam, and the D Class banks, as if in clause (1) of the said recommendations, items (i) and (ii) under sub-clause (b) had been omitted.

(3) The arrears of emoluments payable to the workmen of the banking companies specified in sub-section (2) by reason of the modifications effected by that sub-section shall be paid as follows:-- (a) in the case of the banking companies specified in clause (a) of that sub-section-- (i) the arrears for the year 1955 shall be paid in two equal instalments of which the first shall be paid within ---------------------------------------------------------------------

(4) For the purposes of this section, the expression `the former State of Travancore-Cochin' means the State of Travancore-Cochin as it existed immediately before the 1st November, 1956.

(5) Notwithstanding anything contained in the foregoing provisions of this section, the Central Government may, from time to time by notification in the Official Gazette, make in lieu of the adjustment of the dearness allowance recommended in clause 1 (e) of Chapter XI of the Report of the Bank Award Commission, such adjustment there-of as it thinks fit for any period subsequent to the 31st December, 1957, with reference to the rise or fall, as compared to 144 (1944=100), of the average all-India cost of living index for any period immediately preceding that period; and upon the issue of such notification the adjustment of dearness allowance so made for any period shall be deemed to have been recommended in clause 1(e) of the Report of that Commission: Provided that any adjustment so made shall, so far as may be, bear to the rise or fall of the cost of living index the same ratio as is indicated between the adjustment of dearness allowance and the rise or fall of the cost of living index in the formula recommended in that clause.