Judgment

DAS GUPTA, J.: This appeal by the employer the Muir Mills Co. Ltd., Kanpur is against the decision of the Labour Appellant Tribunal of India, Bombay modifying an award of the Adjudicator Kanpur in a reference made by the Government of U. P. under the provisions of Ss. 3, 4 and 8 of the Industrial Disputes Act, 1947. The matter in dispute referred was originally set out in these terms:

"Whether the employers have wrongfully and/or unjustifiably reduced the wages of their workmen of carding department, given in the annexure? If so to what relief are the workmen entitled and from what date?"

2. By an order dated April 25, 1955, the Government amended this issue by substituting therefore the following:

"Whether the employer have wrongfully and/or unjustifiably reduced the wages of their workmen of Carding Department, given in the annexure, by discontinuing the payment of production and/or special bonus if so, to what relief are the workmen entitled and from what date?"

3. It will be noticed that the issue as re-framed by the amendment indicated the manner in which the reduction in the wages of these workmen had been alleged to be made, viz., "discontinuing the payment of production and/of special bonus". To understand how the question of such a reduction arose and also the considerations which arise in deciding the question whether the reduction, if any, was wrongful and/or unjustifiable a few facts need to be mentioned: The appellant company is a textile mill employing in its Carding Department workmen known as Inter Tenters. Roving Tenters, Draw Frame Teneters and Slubbers. All these workmen are paid wages on piece rate basis. Before 1948 the rates in force per hank were -2/3/- for the Inter Tenters, -/2/3/- for the Slubbers and Draw Frame Tenters and -/2/5/- for the Roving Tenters. In addition to this these workmen were entitled to receive further emoluments if there production exceeded a certain norm. The rates for these further emoluments then in force were two annas per rupee of basic earnings of Rs. 15 to Rs. 25 per month and three annas per rupee for basic earnings above Rs. 25 per month. Apart from these emoluments payment was also made at 9 pies per hank if the production on any day was 7 hanks or more. Though both these additional emoluments were related to production the Tribunals below have described the first kind as production bonus and it will be convenient to adhere to that description here.

4. These two kinds of additional payments which the workmen would receive only if there production would reach and surpass certain standards had the result of increasing the total emoluments received by some of the workmen much above what they would be getting under the fixed rate per hank. The right to receive these additional emoluments had become a part of the terms of service of these workmen. With effect from 1-12-1948, however the appellant-company stopped the system of paying such additional employments but instead raised the fixed rate per hank to -/3/9/- for Inter Tenters, -/3/6/- for Slubbers and Draw Frame Tenters and -/4/9/-for Roving Tenters. This was done immediately after an order had been made by the Government under the provisions of S. 3 of the U. P. Industrial Disputes Act, 1947, laying down the standards of basic wages and dearness allowance for different industries in the Province.. Clause 2 of this order fixed the minimum basic wage for cotton and woolen textile industries in Kanpur and certain other areas at Rs. 30 per month. Clause 3 provided for payment of dear food allowance. Clause 5 provided that persons who are already employed on 30-11-1948, in any industrial textile concern shall receive wages at the increased rates mentioned therein. Clause 7 provided that "every employee of an industrial concern or undertaking to which this order applies, shall be paid wages including dear food allowance in accordance with the provisions of cls. (2), (3), (5) and (6)." There is a proviso to the clause which