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1970 Supreme(SC) 464

SUPREME COURT OF INDIA
S.M. SIKRI, V. BHARGAVA AND I.D. DUA, JJ.
Burmah Shell Oil Storage and Distributing Co. of India, Ltd. (in C. A No. 1477 of 1970); The Burmah Shell Management Staff Association (In C. A. No. 1478 of 1970), Appellants
Versus
The Burmah Shell Management Staff Association and others (in C. A. No. 1477 of 1970); Burmah Shell Oil Storage and Distributing Co. of India Ltd. and others (in C. A. No. 1478 of 1970), Respondents.
Civil Appeals Nos. 1477 and 1478 of 1970, D/- 12-11-1970.
Advocate appeared
Mr. S. D. Vimadalal. Sr. Advocate, (M/s. F. N. Kaka and I. N. Shroff. Advocates, with him), for Appellant (In C. A No. 1477 of 1970) and for Respondent No. 1 (in C. A No. 1478 of 1970): Mr. A. S. R. Chari, Sr. Advocate (M/s. H. K. Sowani, K. Rajendra Chaudhuri and Pratap Singh, Advocates, with him), for Appellant (In C. A No. 1478 of 1970) and for Respondent No. 1 (in C. A No. 1477 of 1970).

Headnote:

Industrial Disputes Act No. 14 of 1947 - Workmen - Industrial dispute - Scales and grades of pay - Appeals by special leave - Reference was confined to members of junior management staff working in Maharashtra region - Main business of Company is marketing of petroleum products and oils and Marketing Area is whole of India which is divided into four areas - This reference related to Bombay area - Organisation and management of each area is divided into four functions, Marketing, Distribution, Personnel and Finance - Each one of four Areas is itself divided into several Marketing Divisions and each Division is further sub-divided into five or seven sales districts as case may be - For sale of commodities, in which Company deals, there are various outlets, such as petrol pumps, storage depots, etc - Company also undertakes the work of fuelling of aircraft at Airfields which work is done by Airfield Service Stations - Association put forward its statement of claim before Tribunal - Whether he does or does not go out of definition of workman" under exceptions – Held, In connection with promotion of sales, he has to make recommendations for selection of agents and dealers; extension or curtailment of credit facilities to agents, dealers and customers; investments on capital and revenue in shape of facilities at Agents premises or retail outlets: and selection of suitable sites for retail outlets to maximise sales and negotiations for terms of new sites - Companys representative in his district responsible for all matters affecting - Companys interests and, in particular, profitable sale of all its products - Court have already given Court reasons for rejecting this submission - Case of District Sales Representative is clearly that of a person who cannot fall within any of four classes, because his work cannot be held to be either manual, clerical, technical or supervisory - Work of canvassing and promoting sales cannot be included in any of these four classifications - He is not a workman at all within principal part of definition, and decision of Tribunal is correct - Appeals partly allowed.

Judgment

BHARGAVA, J.: - These two connected appeals by special leave are directed against an interim award of the Industrial Tribunal, Maharashtra, Bombay, in a dispute referred by the Government, relating to the revision of scales and grades of pay, dearness allowance, overtime payment, duty allowance, other allowances, and bonus for the year 1965-66, between the employers. Messrs. Burmah Shell Oil Storage and Distributing Company of India Ltd., Bombay (hereinafter referred to as "the Company") and a set of employees who were designated as junior management staff and were members of the Burmah Shell Management Staff Association registered as a trade union. The reference was confined to the members of the junior management staff working in Maharashtra region. The main business of the Company is marketing of petroleum products and oils and the Marketing Area is the whole of India which is divided into four areas, viz, Bombay, Calcutta, Madras and Delhi. This reference related to the Bombay area. The organisation and management of each area is divided into four functions, Marketing, Distribution, Personnel and Finance. Each one of the four Areas is itself divided into several Marketing Divisions and each Division is further sub-divided into five or seven sales districts as the case may be. For the sale of commodities, in which the Company deals, there are various outlets, such as petrol pumps, storage depots, etc. The Company also undertakes the work of fuelling of aircraft at the Airfields which work is done by the Airfield Service Stations. For purposes of storage and distribution of products handled by the Company, the Company maintains port installations as well as upcountry depots. The staff concerned in this reference is employed at the installations or the depots in the Maharashtra region.

2. Though the members of the Association are described as junior management staff, they claimed that they were workmen as defined in the Industrial Disputes Act No. 14 of 1947 (hereinafter referred to as "the Act") and, on that basis, raised an industrial dispute relating to salary, etc., as mentioned above. The Association served a charter of demands on the Company on 29th November, 1966. The Government referred the dispute to the Industrial Tribunal on 28th October, 1967. On 2nd December, 1967, the Association put forward its statement of claim before the Tribunal On behalf of the Company, a preliminary written statement was filed on 15th January, l968, contending that none of the members of the Association was a workman, so that the reference was incompetent. In this written statement, it was stated that the Company would request the Tribunal to decide this question as a preliminary issue and that a written statement on merits would only be filed subsequently, if it is held that all or any of members of the Association are workmen within the Act. A rejoinder statement was filed on behalf of the Association on 27th March, 1968. The Tribunal gave its finding on the preliminary issue as an interim award on 9th January, 1970. The members of the Association were classified into various categories of whom we need mention only 10 which are involved in these two appeals. Out of these 10, members of 6 categories were held to be workmen and these are:

(1) Transport Engineer

(2) District Engineers

(3) Foreman (Chemicals)

(4) Fuelling Superintendent.

(5) Chemists.

(6) SalesEngineering Representatives,

Members belonging to 4 categories were held not to be workmen. These categories are :-

(1) Blending Supervisors

(2) Foreman

(3) Depot Superintendents

(4) District Sales Representatives

Civil Appeal No. 1477 of 1970 has been brought up by the Company challenging the decision of the Tribunal in respect of the 6 categories held to be workmen, while Civil Appeal No. 1478/ 1970 has been filed by the Association challenging the correctness of the decision of the Tribunal in respect of the 4 categories held not to be workmen.

3. Some general features with regard to the










































































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