SUPREME COURT OF INDIA
D.A. DESAI AND O. CHINNAPPA REDDY, JJ.
The Workman of the Bharat Petroleum Corporation Ltd., Bombay, Appellant
Versus
M/s. Bharat Petroleum Corporation Ltd., and another, Respondents.
Civil Appeal No, 1396 (NL) of 1982
Decided on 6-10-1983.
Constitution of India, 1950 - Article 136 - Industrial dispute - Retirement age - Wage scales - Workmen of Bharat Petroleum Corporation Limited, Bombay raised an Industrial dispute with regard to retirement age of clerical staff employed in Refinery Divison of Bharat Petroleum Corporation Limited at Bombay - Demand of workmen was that retirement age of clerical staff of Refinery Division at Bombay must be raised from 55 years to 60 years in keeping with trend in Bombay region - Company resisted demand on ground that in all similar oil companies retirement age of clerical staff engaged in Refinery Division had never been fixed at 60 years - Industrial Tribunal found as a fact that wage scales of company were not much better than wage scales of other comparable concerns - Industrial Tribunal also noticed that age of retirement of clerical staff of company in its Marketing Division both at Bombay and other places was fixed at 58 years - Industrial Tribunal, therefore, held that there was no valid reason why retirement age of clerical staff employed in Refinery Division should not be raised at least to 58 years - But having regard to circumstance that clerical staff employed in Refinery Division had already been granted, under a settlement, benefits of Provident Fund and Gratuity and having further regard to fact that while number of members of clerical staff employed in Refinery Division was 148 only – Held, Court are of opinion that this argument cannot be accepted, for it would then mean that if a concern is paying highest wages in a particular line of business, there can be no increase in wages in that concern whatever may be economic conditions prevailing at time of dispute - It seems to Court therefore that where a concern is paying highest wages in a particular line of business, there should be greater emphasis on region part of industry-cum-region principle, though it would be duty of industrial court to see that for purposes of comparison such other industries in region are taken into account as are as nearly similar to concern before it as possible - Industrial courts would be justified in looking at wages paid in that region in other lines of business, it should take care to see that concerns from other lines of business taken into account are such as are as nearly similar as possible, to line of business carried on by concern before it - Informed Court that even in case of clerical staff of the Marketing Division, there is no longer any pension scheme for those that have joined Corporation after nationalisation - This again was not one of grounds on which Tribunal rested its conclusion and Court wish to say no more about it, as Court do not want to jeopardise any claim that workmen may have on that basis or any answer that Management may have in that regard - Appeal allowed.
JUDGMENT
CHINNAPPA REDDY, J. :— The workmen of the Bharat Petroleum Corporation Limited, Bombay raised an Industrial dispute with regard to the retirement age of the clerical staff employed in the Refinery Divison of the Bharat Petroleum Corporation Limited at Bombay. The demand of the workmen was that the retirement age of the clerical staff of the Refinery Division at Bombay must be raised from 55 years to 60 years in keeping with the trend in the Bombay region. The Company resisted the demand on the ground that in all similar oil companies the retirement age of the clerical staff engaged in the Refinery Division had never been fixed at 60 years. Before the Industrial Tribunal, Maharashtra at Bombay to whom the dispute was referred for adjudication, neither party led any oral evidence. The workmen relied upon several decisions of this court to establish that the trend of industry in Bombay was to fix the retirement age of the clerical staff at 60 years, while the company contented itself by filing a statement showing the age of retirement of clerical staff employed in various oil companies. The Industrial Tribunal found as a fact that the wage scales of the company were not much better than the wage scales of other comparable concerns. The Industrial Tribunal also noticed that the age of retirement of the clerical staff of the company in its Marketing Division both at Bombay and other places was fixed at 58 years. The Industrial Tribunal, therefore, held that there was no valid reason why the retirement age of the clerical staff employed in the Refinery Division should not be raised at least to 58 years. But having regard to the circumstance that the clerical staff employed in the Refinery Division had already been granted, under a settlement, the benefits of Provident Fund and Gratuity and having further regard to the fact that while the number of members of the clerical staff employed in the Refinery Division was 148 only, there were as many as 1095 workmen in the non-clerical category, who would also surely raise a dispute to revise their retirement age, the Industrial Tribunal thought that in the interest of industrial harmony, it would be proper to raise the retirement age of the clerical staff to 58 years only and not to 60 years. The workmen have preferred this appeal under Art. 136 of the Constitution. As before the Industrial Tribunal, so too before us, the workmen relied on the trend in the Bombay region while the company relied on the position in other oil companies.
2. In fixing the age of retirement, several factors have to be taken into consideration. These factors have been explained at length in Guest, Keen Williams Private Ltd. v. P. J. Sterling (1960) 1 SCR 348, Dunlop Rubber Company Limited v. Workmen, (1960) 2 SCR 51, Imperial Chemical Industries (India) Pvt. Ltd. v. Workmen, (1961) 2 SCR 349, British Paints (India) Ltd, v. Its Workmen, (1966) 2 SCR 523, G. M. Talang v. Shaw Wallace & Co., (1964) 7 SCR 424 and Burmah Shell Oil Storage & Distributing Company of India Ltd. v. Their Workmen, (1970) 1 Lab LJ 363 (SC).
3. Guest, Keen, Williams Private Ltd. v. P. J. Sterling, (AIR 1959 SC 1279) was a case from Calcutta and it may not be useful to discover the trend in the Bombay region. However, some of the relevant factors to be taken into account in fixing the age of superannuation have been stated and we may usefully extract the observations made by the learned judges in that case. It was said (at p. 1287) :
"In fixing the age of superannuation industrial tribunals have to take into account several relevant factors. What is the nature of the work assigned to the employees in the course of their employment? What is the nature of the wage structure paid to them? What are the retirement benefits and other amenities available to them? What is the character of the climate where the employees work and what is the age of superannuation fixed in comparable industries in the same region? What is generally the practice
referred to : Guest, Keen, Williams Private Ltd. v. P.J Sterling
Dunlop Rubber Co. (India) Ltd. v. Workmen
Imperial Chemical Industries (India) Pvt. Ltd. v. Workmen
British Paints (India) Ltd. v. Its Workmen
G.M. Talang v. Shaw Wallace and Co. Ltd
Greaves Cotton and Co. Ltd. v. Their Workmen
French Motor Car Company Ltd. v. Their Workmen
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