Judgment

SHAH, J:- By order dated February 24, 1965 the Chief Commissioner of Delhi referred for adjudication, industrial disputes between the appellant company and its workmen relating to dearness allowance and introduction of a scheme of gratuity for the benefit of the workmen. The Industrial Tribunal Delhi framed the following "gratuity scheme":

"(1) On death or retirement on attaining the age of supernnaution or on becoming mentally or physically unfit for further service. One month s wages for each year of service or part thereof in excess of six months subject to a maximum of 15 months wages. In case of death of employee the gratuity shall be payable to his nominee or if there is no nominee to his legal heirs.

(2) On termination after five years service for any cause whatsoever except by way of retrenchment or resignation. 15 days wages for each year of service or part thereof in excess of six months subject to a maximum of 15 months wages.

(3) On resignation after 10 years of service. 15 days wages for each year of service or part thereof in excess of six months subject to a maximum of 15 months wages.

Provided that if termination is for any misconduct causing financial loss to the company, the amount of loss shall be deducted from the gratuity payable. The word wages in this Scheme shall mean the total pay packet of the workman including dearness which he was last drawing."

2. The Tribunal also directed that "all workmen who were appointed in 1960 or earlier should get dearness allowance at Rs. 3 for every ten point rise in the cost of Consumer Price Index base 1962 over and above their existing wages with effect from 1st January, 1965. In case of workmen appointed after 1960, the Consumer Price Index base 1960 on the date of his appointment shall be found out and he shall be given Rs. 3 as dearness for every ten point rise in cost of Consumer Price Index base 1960 above it with effect from 1st January, 1965 or such later date on which the limit of 10 point rise in cost of Consumer Price Index base is crossed." The Tribunal also directed that dearness allowance will not be enhanced till the limit of ten points be "crossed" and that dearness allowance once granted will not be reduced till the Consumer Price Index falls by more than 10 points. The Company has appealed to this Court with special leave.

3. In the view of the Tribunal, the financial position of the company "is very sound" and that it has "financial capacity and stability to bear the additional burden of dearness allowance and of the gratuity scheme." In reaching that conclusion the Tribunal relied upon a news item published in the newspapers that 2000 Russian Tractors were being immediately imported by the company even though the agency of the Company was being terminated. In relying upon newspaper reports the Tribunal may have erred. But the conclusion of the Tribunal is founded upon a review of several other circumstances. It is true that one of the primary, lines of business of the company was of selling tractors as agents of Russian manufacturers. That agency was in danger of being terminated because the State Trading Corporation had arranged to take over the agency. But the balance sheets of the company show that the agency was only one of the many lines of business and the closure of the agency of the tractor manufacturers was not likely to affect the financial structure of the Company seriously. The Tribunal has on appreciation of evidence come to the conclusion that the financial position of the company was sound and assuming that the Tribunal is governed by the strict rules prescribed by the Evidence Act, sitting in appeal with special leave we will not be justified in interfering with the finding of the Tribunal even if it be open to the criticism that a part of the evidence relied upon is not in law relevant.

4. The company had on its roll 244 workmen out of whom 118 entered employment after 1960. The company has been paying to its workmen wage