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SUPREME COURT OF INDIA
C.A.Vaidialingam : J.M.Shelat
Pharmed Private
Versus
Workmen
Case No. : 2801 of 1969
Date of Decision : 12/2/69
Industrial Disputes Act – Issue Related to Dearness Allowance – Appeal, by special leave, by appellant company, is directed against the award, of Industrial Tribunal, in Reference (IT) – On a joint application made by appellent and respondents, Deputy Commissioner of Labour (Administration), by virtue of delegation of powers made in his favour by government of Bombay, referred, by his order following questions for adjudication: "All permanent workmen shall be paid dearness allowance as under with retrospective effect from January 1966 – Tribunal has committed a serious error in recording a finding that Chemo Pharma Ltd. and Cipla were not comparable with appellant, without considering materials placed before it by appellant – Finding of tribunal regarding financial ability of appellant to bear additional burden is not justified by evidence on record – Tribunal, in any event, has committed an error in law in having granted full neutralisation when increasing rate of dearness allowance – What should be the rate of variation – Held, Industrial tribunal has taken note of fact that company and Union, by 1966 settlement, have agreed to 2% rise with every 10 points. – It has also adverted to fact that rise in variation is to be on consolidated wages and not on basic wages. – It took view that a variation of 2 5% for every rise or fall of 10 points in price index above 600 is proper. – Though normally this court does not interfere with the percentage of variation fixed by an Industrial tribunal, unless it is very onerous and not related to evidence in the case, it must not be missed that, in this case, there is a guidance afforded by terms of the agreement entered into between the parties. – Court have already referred to fact that in respect of demand No. 1 relating to dearness allowance, parties agreed that between cost of living index figure 581 and 600 rate of dearness allowance was to be fixed at 22% rise on the vages arrived at after working at 500 index figure. – As an interim measure in same settlement, there is also provided, by agreement, that workmen are to be given increased rates of dearness allowance : (a) between cost of living index figure 601 and 610 at 24% rise, and (b) between cost of living index figure 611 and 620 at 26% rise. – That shows that parties, by agreement, have provided in respect of variation by 2% for every 10 points. – That, furnishes a safe guide which should not have been ignored by Industrial tribunal. – Court have to effect a slight modification in variation fixed by Industrial tribunal. – Court is also of view the grant at rate of 2.5% rise in dearness allowance, as awarded by Industrial tribunal, will involve company in an annual burden of Rs. 2,43,000/ and that imposing such a large burden at once might create hardship on company – Court would allow a variation of only 2% on every rise of fall of 10 points and in consumer price index above 600 – Appeal Allowed
C.A.VAIDIALINGAM,J.
(1) THIS appeal, by special leave, by the appellant com- pany, is directed against the award, dated 26/06/1969 of the Industrial Tribunal, Maharashtra, Bombay in Reference (IT) No. 287 of 1967.
(2) ON a joint application made by the appellent and the respondents, the Deputy Commissioner of Labour (Administration), Bombay, by virtue of the delegation of powers made in his favour by the government of Bombay, referred, by his order dated 2/09/1967 the following questions for adjudication: "All permanent workmen shall be paid dearness allowance as under with retrospective effect from January 1966 : Up to and including Bombay As provided in settlement dated
Consumer Price Index 600 April 6, 1966.
points.
When the Bombay Consumer 45% rise on the wages arrived at
Price Index is in the range after working at 500 index figure
of 601/610 as per Clause 2 of the settlement
dated 10th October, 1964.
Variation for every ten 5% rise or fall on the wages arrived
points thereafter at after working at 500 index figure
as per Clause 2 of the settlement
dated 10th October, 1964."
Úf In the questions noted above and which relate to a claim for dearness allowance, it will be seen that there is a reference to two settlements, one dated 10/10/1964 and the other dated 6/04/1966 and it is necessary to refer to those agreements in so far as they relate to payment of dearness allowance as they provide the background for the present reference. The first settlement was arrived at between the parties matters. Item 2 of the settlement related to wage scales. The material portion of the settlement in this regard was as follows :
"WAGE Scales
(1) The management shall give to permanent and temporary workmen an ad hoc increase in their wages with retrospective effect from 1/04/1964 in the following proportion up to 30/06/1964 after which new wage scales as mentioned in (B) below shall be introduced from 1/07/1964.
(i) between index 10 paise for permanent workers ;
figures 480 and above and 10 paise for temporary workers;
but less than 489
(ii) between index 10 paise for permanent workers ;
figures 490 and above and 10 paise for temporary workers ;
but less than 499
(iii) at index 12 paise for permanent workers ;
figure 500 and 10 paise for temporary workers ;
(iv) between index 3% rise on the wages arrived after
figures 501 and working at 500 index figure for
520 permanent workers.
Úf To cite an example for the figures at (i) for permanent workers : 60 paise previous rate.
3 paise rise in index figure
i. e., above 450 at 5%
73 paise at index figure 479
10 paise at index figure 489
s 490 and above and 10 paise for temporary workers ; but less than 499 (iii) at index 12 paise for permanent workers ; figure 500 and 10 paise for temporary workers ; (iv) between index 3% rise on the wages arrived after figures 501 and working at 500 index figure for 520 permanent workers. Úf At group (ii) a permanent worker will get 74 paise and for (iii) group, 75 paise i. e., 75 paise by 192 hours==Rs. 144.00 in group (iv) Rs. 144.00 plus 3%=Rs. 4.32 more i. e., Rs. 148-32 (Rs. 144.00 plus Rs. 4.32), in group (v) Rs. 144.00 plus 5%=7.20 more i. e., Rs. 151.20 (Rs. 144.00 plus 7.20). (B) The following hourly wage scales in paise shall be introduced with retrospective effect from the 1/07/1964 for the perma- nent workmen only : (a) Unskilled 63 P.—4 P.—85.5 P.
(b) Semiskilled B 66.15 P.—2 P.—96.15 P.
(c) Semiskilled A 69.30 P.—21 P.—106.80 P.
(d) Skilled 74.55P.—3P.—119.55P.
se for temporary workers ; but less than 499 (iii) at index 12 paise for permanent workers ; figure 500 and 10 paise for temporary workers ; (iv) between index 3% rise on the wages arrived after figures 501 and working at 500 index figure for 520 permanent workers. Úf The above incremental rates include the agreed ½ P. rise." It was further stated that in view of the consolidated wages the demand for dearness allowance was withdrawn.
(3) FROM the
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