SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1960 Supreme(SC) 106

SUPREME COURT OF INDIA
4th April, 1960
P.B. GAJENDRAGADKAR, K.N. WANCHOO AND K.C. DAS GUPTA, JJ.
Management of Chandramalai Estate, Ernakulam, Appellant
Versus
Its Workmen and another, Respondents.
Civil Appeal No. 347 of 1959.
Advocates Appeared
Mr. S. Govind Swaminathan, Senior Advocate (Mr. P. Ram Reddy, Advocate, with him), for Appellant; M/s. Jacob A. Chakramakal and K. Sundararajan Advocates, for Respondent (No. 1); Mr. K. R. Chaudhury, Advocate, for Respondent (No. 2).

Advocates:
JACOB A.CHAKRAMAKAL, K.R.CHAUDHARY, K.SUNDARARAJAN, P.RAM REDDY, S.GOVIND SWAMINATHAN

A strike is not justified if the workers do not exhaust reasonable avenues for peaceful achievement of their objectives before resorting to strike.

Headnote:

INDUSTRIAL DISPUTES ACT, 1947 - SECTION 10(1)(D) - EXCESSIVE PRICE CHARGED FOR RICE - REFUND - CUMBLY ALLOWANCE - STRIKE - JUSTIFICATION - WAGES FOR STRIKE PERIOD - AWARD - VALIDITY.

Fact of the Case:

The management of Chandramalai Estate charged excessive prices for rice sold to workers after decontrol, stopped payment of cumbly allowance from 1949 to 1954, and refused to pay wages for a strike period. The Industrial Tribunal awarded the workers a refund of the excessive price, cumbly allowance for the years 1949 to 1953, and 50% of their total emoluments for the strike period.

Finding of the Court:

The court held that the management was liable to refund the excessive price charged for rice, as it was not justified in charging more than the cost price. The court also held that the cumbly allowance had become a part of the workers' conditions of service and that the management was liable to pay it for the years 1949 to 1953. However, the court held that the strike was unjustified and that the workers were not entitled to wages for the strike period.

Issues: 1. Whether the management was liable to refund the excessive price charged for rice. 2. Whether the workers were entitled to cumbly allowance for the years 1949 to 1953. 3. Whether the strike was justified and whether the workers were entitled to wages for the strike period.

Ratio Decidendi: 1. The management was liable to refund the excessive price charged for rice because it was not justified in charging more than the cost price. 2. The workers were entitled to cumbly allowance for the years 1949 to 1953 because it had become a part of their conditions of service. 3. The strike was unjustified because the workers did not exhaust reasonable avenues for peaceful achievement of their objectives before resorting to strike.

Final Decision: The court allowed the appeal in part and set aside the award in so far as it directed the payment of 50% of the total emoluments for the strike period but maintained the rest of the award.

Judgment

DAS GUPTA, J. : On August 9, 1955, the Union of the workmen of the Chandramalai Estate submitted to the Manager of the Estate a memorandum containing fifteen demands. Though the Management agreed to fulfil some of the demands the principal demands remained unsatisfied. On August 29, 1955, the Labour Officer, Trichur, who had in the meantime been apprised of the position by both the management of the Estate as well as the Labour Union advised mutual negotiations between the representatives of the management and workers. Ultimately the matter was recommended by the Labour Officer of the Conciliation Officer Trichur for conciliation. The Conciliation Officer s efforts proved in vain. The last meeting for Conciliation appears to have been held on November 30, 1955. On the following day the Union gave a strike notice and the workmen went on a strike with effect from December 9, 1955. The strike ended on January 5, 1956. Prior to this, on January 5, the Government had referred the dispute as regards five of the demands for adjudication to the Industrial Tribunal, Trivandrum. Thereafter by an order dated June 11, 1956, the dispute was withdrawn from the Trivandrum Tribunal and referred to the Industrial Tribunal, Ernakulam. By its award dated October 17, 1957, the Tribunal granted the workmen s demands on all these issues. The present appeal has been preferred by the management of the Chandramalai Estate against the Tribunal s award on three of these issues. These three issues are stated in the reference thus :

"1. Was the price realised by the management for the rice sold to the workers after decontrol excessive; and if so, are the workers entitled to get refund of the excessive value so collected?

2. Are the workers entitled to get cumbly allowance with retrospective effect from the date it was stopped and what should be the rate of such allowance?

3. Are the workers entitled to get wages for the period of the strike?"

2. On the first issue the workmen s case was that after the control on rice was lifted by the Travencore-Cochin Government in April, 1954, the management which continued to sell rice to the workmen, charged at the excessive rate of 12 annas per measure for rice bought in excess of a quota for 1 1/2 measure per head. This according to the workmen was improper and unjustified and they claimed refund of the excess which they have been made to pay. The management s case was that the workmen were not bound to buy rice from the Estate s management and secondly, that only the actual cost price and not any excess had been charged. The tribunal held on a consideration of oral and documentary evidence that the management had charged more than the cost price and held that they were bound to refund the same.

3. The second issue was in respect of a claim for cumbly allowance. Chandramalia Tea Estate is situated at a high altitude. It is not disputed that it had been customary for the Estates in this region to pay blanket allowance to workmen to enable them to furnish themselves with blankets to meet the rigours of the weather and that it had really become a part of the terms and conditions of service. But in spite of it the management of this Estate stopped payment of the allowance from 1949 onwards and resumed payment only in 1954. The management s defence was that any dispute not having been raised about this till August 9, 1955, there was no reason for raising it at this late stage. The Tribunal rejected this contention, and awarded cumbly allowance of Rs. 39 per workman - made up of Rs. 7 per year for the years 1949, 1950 and 1951 and Rs. 9 per year for the years 1952 and 1953.

4. On the third issue while the workmen pleaded that the strike was justified the management contended that it was illegal and unjustified. The Tribunal held that both parties were to blame for the strike and ordered the management to pay workers 50 per cent of their total emoluments for the strike period.

5. On the question of excess price of rice ha







Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top