Judgment

DESAI, J.:- In exercise of the power conferred by S. 4(k) of the U. P. Industrial Disputes Act, 1947 (Act for short) the Government of Uttar Pradesh by its order dated May, 23, 1975 referred the following dispute to the Industrial Tribunal for adjudication. The reference is in Hindi. Agreed translation of the industrial dispute referred for adjudication reads as under :-

"Whether the variable dearness allowance payable by the employers to their workmen should be revised and it should be linked with the consumer price index for industrial workers at Kanpur computed by Labour Bureau, Simla? If yes, then from what rate (sic) and with what other details."

2. There are two rival unions of the workmen employed by the Indian Oxygen Ltd. (Company for short) in its industrial undertaking at Kanpur. They are the Indian Oxygen Karamchari Union (Karamchari Union for short) and the Indian Oxygen Shramik Sangh (Shramik Sangh for short). There is a federation of trade unions formed at various centres where the Company has its industrial undertakings. Shramik Sangh is affiliated to the federation. Karamchari Union claims to represent to workmen employed by the Company at Kanpur. The demand and the consequent industrial dispute which led to the reference was espoused by Karamchari Union.

3. The Karamchari Union in its statement of claim stated that the Company is a unit of the multi-national British Oxygen Company. The Indian Unit of the multi-national corporation operates under the name and style of M/s. Indian Oxygen Ltd. The industrial activities of the Company comprises manufacture and sale of industrial and medical gases etc. It was stated that while the wage structure is uniform in respect of workmen employed by the Company all over the country the dearness allowance formula varies from centre to centre. Briefly it was stated that the workmen of the Company employed at Bombay, Madras, Hyderabad, Bangalore and Delhi are in receipt of higher dearness allowance compared to the workmen employed in Kanpur Unit. The immediate provocation for raising the demand was an award by the Industrial Tribunal, Delhi by which the dearness allowance of the workmen employed in Delhi unit was linked to consumer price index for Delhi prepared by the Labour Bureau, Simla which resulted in a substantial increase in the dearness allowance available to the workmen posted at Delhi. Soon after the award was published the Karamchari Union submitted a demand oil Jan., 7, 1975 for revising the rate of dearness allowance, for workmen employed in Kanpur unit and as there was no adequate response from the employer, the matter was taken into conciliation. The Company in its attempt to thwart the demand being pursued entered into a settlement with the Shramik Sangh in respect of the dearness allowance and then approached the Labour Commissioner, Kanpur for registering the settlement. Failing to obtain the registration, the Company unilaterally enforced the new scheme of dearness allowance linked to the all-India average consumer price index prepared by Labour Bureau, Simla. The Karamchari Union did not accept the revisel formula, and pressed its demand that the dearness allowance should be linked to All-India consumer price index number prepared by Labour Bureau, Simla for Kanpur centre, after adopting the linking factor as has been done in the award by the Industrial Tribunal at Delhi. The conversion ratio was suggested at 4.83 linked to January, 1970 index number.

4. The Company consistent with the employer culture put forth number of preliminary objections so as to delay the adjudication of the demand. All the preliminary objections failed as per the decision of this Court in Indian Oxygen Ltd. v. The Workmen, (1979) 2 SCR 911. After the matter went back for adjudication on merits it was contended on behalf of the Company that the settlement arrived at between the Shramik Sangh and the Company would be binding on the members of the Karamchari Union and the Tribunal