Judgment

Arijit Pasayat, J.—Hindustan Steel Works Construction Limited (hereinafter referred to as the ‘employer’) calls in question legality of the judgment rendered by Division Bench of the Andhra Pradesh High Court affirming the order passed by the learned Single Judge holding that withdrawal of construction allowance which was being earlier allowed to the employees working at the Vishakhapatnam was in violation of Section 9-A of the Industrial Disputes Act, 1947 (in short the ‘Act’). According to the employees as urged in the writ petition it was done without following the mandatory provisions of Section 9-A and was in violation of principles of natural justice.

2. Factual aspects need to be noted in brief are as follows:

Employer started construction work of Vizag Steel Plant in 1979 and employees stationed there were paid Project/construction allowance. The employer discontinued payment of construction allowance and had paid City Compensatory allowance. The withdrawal continued w.e.f. 7.4.1992. On 22.8.1974 a circular was issued by the employer notifying revision of pay scales w.e.f. 1.1.1974. On 17.1.1975 the Ministry of Finance, Govern­ment of India issued Office Memorandum wi