Judgment

VAIDIALINGAM, J.:- These three appeals by special leave, arise out of the Award dated April 15, 1971 of the Industrial Tribunal, Maharashtra, Bombay, in References (I.T. Nos. 20 and 105 of 1969 and 70 of 1970).

2. The main questions that arise for consideration in these appeals relate to the award of dearness allowance, classification of grades and fixation of wages and a direction given by the Industrial Tribunal regarding the Incentive Bonus Scheme as modified by the Company. There is also a minor point regarding a particular clause in the Gratuity Scheme as framed by the Tribunal in Reference (I.T. No. 20 of 1969). Though there are certain other matters dealt with in the award in Reference (I.T. No. 20 of 1969), they are not the subject of controversy in these appeals.

3. We will now state the circumstances under which the References came to be made to the Tribunal

4. The appellant was started as a proprietary concern in the year 1944 and was later transformed to a public limited Company and registered as such under the Indian Companies Act, 1962. From its inception, the Company has been dealing in the business of manufacturing and selling pharmaceutical products. It has its factory in Jogeshwari in Greater Bombay. At the time of the Reference, the Company was employing about 714 workmen, of whom 558 were operatives and 156 were members of the clerical and subordinate staff. All these employees were covered by the demands comprised in all the References. The wage scales of the workmen had been determined originally in Reference (I.T. No. 23 of 1959). The wage scales of the operatives were as follows:-

"Unskilled A Rs. 50-0.09-2.23-0.12-2.93

Unskilled B 1.25-0.06-1.85-0.09-2.30

Semi-skilled A 2.00-0.12-2.72-0.18-3.80

Semi-skilled B 1.76-0.11-2.64-0.15-3.39

Skilled 2.59-0.13-2.85-0.22-3.95-0.30-4.25"

5. The wage-scales of the clerical and subordinate staff were as follows:-

"Junior Chemist Rs. 120-10-200-12-260

Manufacturing Assistant 140-10-220-15-310

Store-keepers}

Store Assistants} 180-10-260-15-350

Stenographers}

Junior Clerk 60-8-90-10-140-E.B.-15-215

Intermediate clerks 75-8-115-12-175-E.B.-15-250

Senior Clerks 115-10-255.15-315-E.B.-20.395."

6. In addition to the basic wages, referred to above, the employees were getting dearness allowance, which in the case of operatives was equal to 80 per cent of the revised textile scale of dearness allowance and in the case of clerical and subordinate staff 100 per cent, of the revised textile scale of dearness allowance.

7. The nomenclature of the grades of the operatives was changed by a consent award in Reference (I.T. No. 170 of 1961). The grades and wages as per this award were as follows:

"Unskilled Rs. 1.25-0.06-1.85-0.09-2.30

Semi-skilled A 1.52-0.02-2.33-0.12-2.93

Semi-skilled B 1.76-0.11-2.64-0.15-3.39

Skilled 2.00-0.12-2.72-0.18-3.39

Highly skilled 2.59-0.13-2.85-0.22-3.95-0.30-4.25"

8. The dearness allowance of the operatives and clerical and subordinate staff underwent a change by the award in Reference (I.T. No. 402 of 1963). Under that award the dearness allowance of the operatives was increased to 90 per cent of the revised textile scale of dearness allowance from January 1, 1964 and 95 per cent of the revised textile scale of dearness allowance from July 1, 1964. The dearness allowance of the clerical and subordinate staff was supplemented at different slabs with effect from January 1, 1964, as follows:-

"Basic salary upto Rs. 100 Operatives dearness allowance plus Rs. 7.50

Basic salary of Rs. 101 to 200 Operatives dearness allowance plus Rs. 15

Basic salary of Rs. 201 to Rs. 300 Operatives dearness allowance plus Rs. 22.50

Basic salary of over Rs. 300 Operatives dearness allowance plus Rs. 25"

9. Though the award prescribed to the clerical and subordinate staff the same rate of dearness allowance of the operatives plus a fixed amount, as referred to above, the Company continued to give them dearness allowance equal to 100 per cent of the revised textile scal