JUDGMENT :- The plaintiff is a firm of partners called Sri Ramachandra Spinning Mill, Pandalapaka. The first defendant is the State of Madras. The second defendant is one Venkata Reddi who was an employee in the plaintiffs mill. In September 1946 the first defendant appointed Mr. Sherfuddin, the then District Judge of East Godavari, as an adjudicator to report what rates of dearness allowances the plaintiffs mill (as well as another) should be required to pay to its employees.

While Mr. Sherfuddins enquiry was in progress, Government referred to Mr. Venkataramiah the wider question of the wage structure of the textile mills in the Province. Mr. Venkataramiah made an interim report recommending that the rates of pay should be on a certain basis, and on 18-12-1946 Government issued G.O. No. 4637 giving effect to his proposals. Mr. Sherfuddin made his report on 23-12-1946 and Government accepted the recommendations contained in it and directed that this should be given effect to - vide G.O. Ms. 39 dated 4-1-1947.

On 19-6-1947 Mr. Venkataramiah gave his final award and in G.O. No. 3080 Development dated 15-7-1947 Government directed that the rates mentioned in Mr. Venkataramiahs