Judgement

BHAGWATI J.- The facts and circumstances which led to the present Appeal may be shortly stated as under.

2. The appellant, the management of the Tea, Estates in Assam represented by the Indian Tea Association, Calcutta, used to supply certain quantities of rice and other articles of food at concession rates to their workmen. Before February 1950, the supply of rice at such concession rates to an adult male worker was 5 seers per week. From February 1950, the rice quota was reduced by half-a-seer per week and for the said cut the employers agreed to pay cash compensation at the rate of 6 pies per working day. Due to shortage of cereals, the Government of India notified on the 18th November 1950, "an All India Cereal Ration Scale which laid down that no adult male worker was entitled to get more than 3.5 seers of rice per week". The result was a further cut of another seer of rice per week in the supply of rice at concession rates. The workmen claimed compensation in cash for this cut in the rice quota. This led to a dispute between the employers and the workmen and that dispute was referred for adjudication by the Government of Assam by its notification dated the 30th October 1950. In that adjudication proceeding which, was numbered as reference No. 14 of 1950, the workmen claimed cash compensation at a certain rate. The employers on the other hand contended, that whatever concessions had been given to their workmen in respect of the sale price of rice were ex gratia and therefore the workmen had no legal claim for compensation in respect of the quantity of the cut in rice ration so imposed. The employers contended in the alternative that even if they were under an obligation to pay cash compensation, the amount would be far less than the amount claimed by the workmen.

3. The Tribunal gave its award on the 11th December, 1951, which was published in the Assam Gazette on the 2nd February, 1952. It held that the system of rice benefit at concession rate was part of the worker s wage and the employers were under legal obligation to pay cash compensation to the workmen for the said cut in the supply of rice. It also fixed the rate of compensation for the rice cut. The employed filed an appeal being Appeal No. Cal. 27 of 1952 before the Labour Appellate Tribunal. At the hearing of that appeal, the employers did not reiterate their contention that they were under no legal obligation to pay cash compensation for the rice cut. They only questioned the, rate of compensation which had been awarded. The contention of the employers was accepted, and the rate of compensation for the rice cut was reduced. This award was pronounced by the Labour Appellate Tribunal on the 2nd April 1954.

4. In the meanwhile, on the 11th March 1952, the Govt. of Assam issued a notification in exercise of the powers conferred on it by the Minimum Wages Act and fixed the minimum wages of workmen employed in the Tea Gardens of Assam at certain cash rates. Under the terms of that notification, the Government of Assam fixed the minimum wages which were to come into force with effect from the 30th March 1952, consisting of basic wages and dearness allowance at the rates specified in the Schedule annexed thereto. Paragraph 2 of the said notification is important and it runs as follows:-

"2 The rates are exclusive of concessions enjoyed by the workers in respect of supplies of foodstuffs and other essential commodities and other amenities which will continue unaffected. The existing tasks and hours of work may continue until further orders".

5. It appears that the minimum wages so fixed exceeded the total of the cash wages which the employers were paying to their workmen and the value of the concession at which rice was being supplied as also the amount of compensation for the cut which they were directed to pay by the award made in Reference No. 14 of 1950. The employers therefore contended that the Govt. s minimum wage notification had the effect of absorbing