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1960 Supreme(SC) 318

SUPREME COURT OF INDIA
12th February, 1960.
P.B. GAJENDRAGADKAR, K. SUBBA RAO AND K.C. DAS GUPTA, JJ.
Rohtas Sugar Ltd., and others, Appellants
Versus
Mazdoor Seva Sangh and others etc., Respondents.
State of Bihar, Intervener.
Civil Appeals Nos. 717 to 742 of 1957. 672
Advocates appeared
M/s. A. B. N. Sinha and B. P. Maheshwari, Advocates, for Appellants (in all the appeals); Mr. L. K. Jha, Senior Advocate, (Mr. D. P. Singh Advocate, with him), for Respondents (Nos. 1, 4, 5, 7, 8, 10, 14, 15, 21, 24, 26 to 30, 36, 37 and 39); Mr. P. K. Chatterjee, Advocate, for Respondents (Nos. 6, 9, 12, 17, 20, 22, 23, 25, 31 and 32) : Mr. L. K. Jha, Senior Advocate, (Mr. R. C. Prasad, Advocate, with him), for Intervener.

Advocates:
A.B.N.Sinha, B.P.MAHESHVARI, D.P.Singh, L.K.JHA, P.K.CHATTERJI, R.C.Prasad

Judgment

DAS GUPTA, J. : These appeals are against the order of the Labour Appellate Tribunal of India at Dhanbad by which the Labour Appellate Tribunal confirmed the order of the Industrial Tribunal awarding a retaining allowance to unskilled workmen at a rate of 5 percent of the basic wages for the period of the off season of numerous sugar industries in Bihar. The appellants - companies, the employees, in these sugar industries also challenge the correctness of the order made by the Industrial Tribunal and confirmed by the Labour Appellate Tribunal awarding the workmen attending the proceedings before the Industrial Tribunal, wages, travelling allowance and halting allowance and further directing that the workmen attending these proceedings would be treated on special leave with pay for the period of such attendance.

2. As regards these orders the appellants contend that they run counter to the pronouncements of this Court in Punjab National Bank Ltd. v. Sri Ram Kanwar, Industrial Tribunal, Delhi, 1957 SCR 220. This contention, we are bound to say, is correct. Whatever might have been said in support of the view taken by the Tribunals in ordering payment of these allowances and of granting special leave to workmen attending proceedings of necessity, if the question was res integra we are bound by the authority of Punjab National Bank s Case, 1957 SCR 220, to hold that no such allowances are payable and no such order granting leave may be made. The order of the Tribunals below allowing travelling allowance and halting allowance and special leave to workmen attending proceedings of necessity, must therefore be set aside. Mr. Sinha, learned counsel for the appellants, however, has undertaken on their behalf that no restitution will be claimed of allowances which have already been paid.

3. This brings us to the main question in controversy in these appeals. That question is whether retaining allowance should be paid to unskilled workers in these industries during the off season. Disputes over this question have been going on for many years and committee after committee has wrestled with the problem for arriving at a formula acceptable to both employers and labourers but in vain. In 1950 a reference was ultimately made to Mr. Justice B. P. Sinha (as he then was) as regards these disputes about retaining allowance. The award made by him provided for retaining allowance to skilled and semi-skilled workmen but none to unskilled workmen. Before the Appellate Tribunal who heard the appeal against that award the labourers and employers came to an agreement that no retaining allowance would be payable to the unskilled workmen. This award was in operation for a period of two years but was thereafter determined by notice given by workmen followed up by similar notice by employers. The reference out of which the present appeals arise included several other matters besides retaining allowance to seasonal employees, but with those we are no longer concerned in these appeals. Nor are we concerned with the question of retaining allowance to skilled and semi-skilled workmen as that part of the award was not disputed by the present appellants.

4. On the question of retaining allowance the main contentions on behalf of the employers were that agriculture was the primary occupation of these persons and the employment in the sugar factory was merely a subsidiary occupation, that the claim for retaining allowance was really in the nature of unemployment relief which it was the duty of the State and not the industry to give, that the relationship between the employers and these employees does not exist in the off season and so no payment of anything in the character of wages could possibly be claimed by the labour. The Tribunal overruled all these objections. It was of opinion that the working season in the factory completely covers the paddy harvesting season in North Bihar, where most of the factories are situated so that the workmen the bulk of whom










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