JASWANT SINGH, J.

(1) THIS appeal by special leave is directed against the award dated 21/02/1977 of the Industrial tribunal. Gujarat in reference 13 of 1975 made on 21/01/1975, by the government of Gujarat in exercise of its powers under S. 10(l)(d) of the Industrial Disputes Act, 1947 (XIV of 1947) (hereinafter called the Act) for adjudication of the dispute relating to five demands viz. washing allowance, woollen jersey, unclean allow- ance, transport allowance and variable dearness allowance linked with Ahmeda- bad cost of living index and adequate dearness allowance equal to that of textile workers of Ahmedabad (which is 100% neutralisation) sponsored by the Chemicals Kamdar Sangh, Mithapur (hereinafter referred to as the Sangh).

(2) BRIEFLY stated, the facts leading to the appeal are : The appellant is a public limited company registered under the Indian Companies Act and has its factory at Mithapur in the State of Gujarat. As per its practice and policy of recognising and negotiating with the Union enjoying the support of largest number of its workers, it carried on its dealings with the Sangh (which was the recognised union) till 25/01/1973 when the Assistant Commissioner of Labour, Ahmedabad declared as a result of the verification made by him that the Tata Chemicals Employees Union (hereinafter referred to as "the Employees Union") was entitled to be recognised under the Code of Discipline in view of the fact that 55 % of the total number of the employees of the con- cern were its members and addressed a communication to the appellant request- ing it to recognise the said union. Pursuant to this communication, the appel- lant accorded recognition to the Employees Union with effect from 25/01/1973. Thereupon the Sangh filed a Special Civil Application challenging the aforesaid order of the Assistant Commissioner of Labour in the High court of Gujarat which was summarily rejected vide order dated 3/04/1973. On 18/06/1973, the Employees Union submitted a charter of demands to the appellant which included inter alia a demand for dearness allowance at 100% of Ahmedabad Cotton Textile Rate popularly known as the Textile Dearness Allowance. In respect of these demands, the Conciliation Officer summoned a conciliatory meeting for 26/07/1973. Meanwhile on 9/07/1973, the Sangh representing about 800 workmen of the concern submitted the afore- said charter of demands before the management which also included a demand for dearness allowance as paid to the workers of the Cotton Textile Industry. The charter also contained an intimation to the management of the Sanghs intention to resort to strike for realisation of its demands. As negotiations between the parties for an amicable settlement did not prove fruitful, the Sangh wrote to the Conciliation Officer, Rajkot, on 17/07/1973 requesting him to intervene. After preliminary discussions with both the parlies, the Con- ciliation Officer admitted the case for conciliation on 30/08/1973. As the conciliation proceedings held by him from time to time between Septem- ber 7, 1973 and 6/11/1973 (to which the Employees Union was also made a party at its request) did not lead to a settlement between the parties, the Conciliation Officer submitted his failure report to the State government on 14/12/1973. On even date, the appellant arrived at an agreement with the Employees Union in respect of the demands submitted by the latter on behalf of its daily rated and monthly rated members including clerical staff. It was agreed between the parties to this settlement that it would remain in force for a period of three years with effect from January 1, 1974. A notice with regard to the settlement with the Employees Union was put up on general notice board by the appellant on 17/12/1973. On 21/01/1975, the State government made, as already stated, a reference to the Industrial tribunal for adjudication of the dispute respecting the aforesaid demands raised by the Sangh. In the course