Judgment

MATHEW, J.:- These two appeals, by special leave are directed against a supplementary award dated October 15, 1971, passed by the Industrial Court. Maharashtra, Bombay, in Miscellaneous applications (IC) Nos. 1, 2 and 3 of 1970, filed by the respondent, the Mill Mazdoor Sabha, hereinafter called the Sabha . By the supplementary award, the Industrial Court has modified an existing award of the Industrial Court, Maharashtra, Bombay dated April 25, 1962, passed in reference (IC) Nos. 131, 138, 139 and 155 of 1961, and published in the Maharashtra Government Gazettee dated June 14, 1962, by directing with retrospective effect from January 1, 1971, that the employees in Silk and Art Silk Industry who were concerned in the dispute shall be granted dearness allowance at the rate of 99 per cent neutralization of the rise in the Bombay Consumer Price Index 106 (old series) on the basis of the minimum wage of Rs. 30/- per month of 26 working days.

2. We will deal with appeal No.276 of 1972 first. The Appellant is the Silk and Art Silk Mills Association, Ltd., a public company having its registered office in Bombay, hereinafter called the Association . For the purpose of Bombay Industrial Relation Act, 1946, the Association was recognised under section 27 rea with section 3 (23) of that Act as the Association of employers of Silk and Art Silk Textile Industry within the local area of Greater Bombay. Silk Textile Industry was started in India sometime in 1933 and the Association came into being in 1939 with 16 members having 2,000 looms. Till 1965, the Association was registering as members only mills having 25 or more looms. Thereafter, it began to register smaller units also as its members. Such smaller units numbered 308 with 2,326 looms in March, 1969. The total number of mills within and outside the State of Maharashtra which were members of the Association on March 31, 1969, was 512 with a total of 20,200 looms. According to the Association, out of the 512 units which were its members, a large number of units numbering about 444 were grey units, which means, that none of these units has its own raw materials and that they have not got any equipment for dyeing, bleaching or otherwise finishing their products.

3. On February 6, 1970, when Miscellaneous Application (IC) No. 1 was filed, the Association had, as its members, about 325 units of employers in the art silk textile industry within the local area of Greater Bombay. Out of these 325 employer-units, 90 employer-units alone were concerned with the Miscellaneous Application (IC) No. 1 of 1970, as that application sought modification of the award dated April 25, 1962, in reference Nos. (IC) 131, 138, 139 and 155 of 1961 which governed only the 90 units of the Art Silk Industry. In this case, we are directly concerned with 55 member-units only, as the remaining 35 units had gone out of business between April 25, 1962 and February 5, 1970.

4. There were two previous decisions binding on these units regarding dearness allowance. One was the award passed in reference No.97 of 1951 which granted neutralization to the extent of 75 per cent rise in the Bombay Consumer Price Index 106 (old series). The other was a settlement arrived at during the pendency of Miscellaneous Application (IC) No. 3 of 1957 which modified the award in reference No.97 of 1951 by percentage of neutralization to 80 per cent with effect from June 1, 1957.

5. The Sabha is recognised under Section 30 read with Section 3 (32) of the Bombay Industrial Relation Act as the representative Union of employees in the Silk and Art Silk Industry within the local area of Greater Bombay.

6. The demand of the Sabha in Miscellaneous Application (IC) No.1 of 1970 was, that "the employees shall be granted with effect from May 1, 1970, dearness allowance at the rate of 100 per cent neutralization of the rise in the Bombay Consumer Price Index 106 (old series) on the basis of the minimum wage in force at present, namely Rs.36.50