Judgement

MUDHOLKAR, J. : This is an appeal by special leave against an award made by the court of Industrial Tribunal, West Bengal, Calcutta.

2. The relevant facts are these: The Western India Match Co., (respondent) has got a factory with an office attached thereto in Alambazar, which is a suburb of Calcutta. It has also got a sales office at Calcutta which is situate in the commercial area. Certain disputes arose between the factory employees and the respondent, pursuant upon the presentation of a charter of demands by them to the respondent on January 25, 1957. These demands were seven in number. The demands included enhancement of the dearness allowance and alteration of the basis of computing it. They also included a demand for the revision of pay scales. The respondent was unwilling to concede the demands and thereupon the appellant-union approached the Labour Commissioner, West Bengal. Apparently on his suggestion certain conferences were thereafter held between parties and the Conciliation officer with a view to arrive at a settlement. During those conferences certain counter proposals were put forward by the respondent but they were not accepted by the union. Eventually the Government of West Bengal by its order dated January 14, 1958 referred the dispute relating to the dearness allowance alone to the Fourth Industrial Tribunal at Calcutta but not the other disputes. Conciliation proceedings regarding other disputes were resumed after the aforesaid reference was made and on May 23, 1958 a settlement was reached between the Union and the respondent on all issues excepting the one relating to grades and scales of pay. It was agreed that this issue be referred for adjudication to the same tribunal which was dealing with the question of dearness allowance. Upon this the Government of West Bengal referred that issue to the Fourth Industrial Tribunal, West Bengal by order dated June 3, 1958.

3. Before dealing with the contentions of the parties it would be desirable to set out some more facts. The Western India Match Co., has got factories not only at Alambazar but also at Bareilley in Uttar Pradesh, Ambernath in Maharashtra, Tiruvottiyur in Madras and at Port Blair. The factory at Alambazar was established in the year 1930. Besides these factories the respondent maintains separate sales offices at various places in India to push sales and execute orders. One of such sales offices is located in the city of Calcutta.

4. At the time of the reference 1,866 persons were employed in the factory at Alambazar. Out of them 1,504 were daily-rated or piece-rated employees and the remaining 362 were monthly-rated employees. Amongst them 27 were officers, 67 clerks and 32 supervisors. The rest were bearers, watchmen, malis, fitters etc. Apart from the officers all the monthly-rated employees admittedly fall within the definition of workers under the Factories Act.

5. In the year 1946 a union called the Wimco Mazdoor Union was formed comprising only of the daily-rated and piece-rated workers. This union was given recognition by the respondent. In the year 1950 another union called the Wimco Employees Union comprising solely of the monthly rated employees, other than officers, was formed and was duly recognised by the respondent. One of the conditions under which the recognition was given was that its membership should consist only of monthly-rated employees of the factory except the officers.

6. Shortly after the recognition of this Union it entered into an agreement with the management of the respondent company whereby the scales of pay, dearness allowance and various conditions of service of the monthly paid employees at Alambazar factory were settled. The date of this agreement is September 29, 1951.

7. Certain disputes arose between the Union and the respondent in the year 1954 which were referred by the government of West Bengal by its order dated September 1, 1954 to the Second Industrial Tribunal, West Bengal, for adjudication. In th