Judgement

MITTER, J.:- This is an appeal by special leave form an award of a National Tribunal under an order of reference reading:

"Whether the demand of the workmen for a share in the incentive payment allowed by Government to cement producers is justifies ? If so, what should be the basis and the quantum payable for the year 1963 and subsequent years ?"

2. The-cement producers involved were 14 in number set out in Schedule I to the said Order. Out of the total, the Tribunal was not called upon to go into the cases of five cement producers as they had not received any incentive payment and the demand in respect of these five companies was dismissed. Even out of the nine left, three of the producers entered into settlements with their workers as a result whereof the cases of six only are left for consideration. The names of the companies and the incentive payments involved in this appeal are as under :-

Name of the Company Payment for 1963. Payment for 1964

Rs. Rs.

1. India Cement Ltd. 56,713-50 22,265-00

2. Sone Valley Portland Cement Co. Nil 22,000-00

3. Dalmia Dadry Cement Ltd. 1,19,760-00 1,22,496-00

4. Jaipur Udyog Ltd. 5,16,661-00 Nil

5. Kalyanpur Lime & Cement Works

Ltd. 17,923-00 20,305-00

6. Mysore Iron and Steel Co. Ltd. 20,86,759-00 Nil

3. The background of the dispute is as follows. "Cement and gypsum products" became a scheduled industry under S. 3 (1) of the Industries (Development and Regulation) Act of 1951 being an Act to; provide for development and regulation of certain industries. Under S. 2 of the Act the Union of India was empowered to take control of the said industry. S. 18 (g) (1) of Chapter III-B of the Act with the heading "Control of Supply, distribution, Price etc. of certain articles" enable the Central Government to provide for regulating the supply and distribution of any article or class of articles relatable to any Scheduled industry and trade and commerce therein by notified order. Sub-s. (2) of S. 18 (g) illustrates the powers comprehended by sub-s. (1). These include, inter alia, powers for controlling the prices at which any such articles or class thereof may be bought or sold, regulation of the distribution of such articles etc. On October 31, 1961 Government of India made an order under S. 18 (g) known as the Cement Control Order of 1961 superseding an earlier Order of 1958. The relevant portions of the Orders are set out below:

"Cl. 3. Producers to sell cement to Corporation ........... (1) Every producer shall sell ........

(a) the entire quantity of cement held in stock by him on the date of commencement of this order; and

(b) the entire quantity of cement which may be produced by him before the date of commencement of this Order up of the 31st March, 1966 (Inclusive) except such quantity as may be mutually agreed upon from time to time between him and the Central Government to the Corporation, and deliver the same to such person or persons as may be specified by the Corporation in this behalf from time to time.

(c) Notwithstanding any contract to the contrary, no producer shall dispose of cement held in stock or produced by him except in accordance with the provisions of sub-clause (1).

Cl. 6. Controlled price of cement.

(1) The price at which a producer may sell cement at other than -

(i) water-proof (hydrophobic) cement;

(ii) rapid hardening cement and

(iii) low heat cement;

shall be as specified in the schedule;

* * *

(2) (a) The price at which the Corporation may sell cement other than -

(i) water-proof (hydrophobic) cement;

(ii) rapid hardening cement; and

(iii) low heat cement;

to any person shall be Rs. 94 - 00 per metric tonne free on rail destination railway station plus the excise duty paid thereon:

Provided that the Corporation may, with the prior approval of the Central Government, allow a rebate, discount or commission in the price of cement sold to the Government for the Directorate General of Supplies and Disposals:

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There was only one Schedule to the Order which ran;

The Schedule