P.B.GAJENDRAGADKAR, K.N.WANCHOO, K.C.DAS GUPTA
Akola Electric Supply Company Private LTD. – Appellant
Versus
J. N. Jarare – Respondent
Judgement
DAS GUPTA, J. : This appeal by special leave is against an award for the Industrial Court at Nagpur under Section 38(a) of the Central Provinces and Berar Industrial Disputes Settlement Act, 1947 dated April 29, 1961. By an earlier award dated December 4, 1959, the Industrial Court ordered the payment of gratuity to the employees of the appellant Company on certain rates. The award was to come into force from December 4, 1959. On an application by the Company under Article 227 of the Constitution, the Nagpur High Court set aside the Industrial Courts order and remanded the matter for reconsideration of the question after examining the financial condition of the Company. After remand the Industrial Court took evidence of both parties as regards the financial condition of the Company and came to the conclusion that the Company was in a very sound financial position and could easily bear the burden of payment of gratuity to the extent of Rs.50,000/- or even more. Accordingly, the Industrial Court made a fresh award directing the payment of gratuity to the Company s employees at the rate of 1/2 month s average wages-the average wage to be calculated for the period December 1,1
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