Appeal No 1951 of 1975
Appeal by Special Leave from the Award of the Industrial Tribunal Gujarat in Reference II No 30 of 1974 pub lished in the Gujarat Govt
Gazette dated 23 10 1975 and Civil Appeal No 631 of 1976 Appeal by Special leave from the Award of the Industrial Tribunal Gujarat in Ref
II No 158 of 1974 published in the Gujarat Govt
Gazette Part I L dated 15 4 76
VB Patel 1
N Shroff and HS Parihar for the appel lants In CA 195175
ST Desai A P Hathi Mrs section Bhandare M section Narasimhan KC Sharma A K Sharma and A K Mathur for the appellants in CA 63176
VM Tarkunde KL Hathi and PC Kapur for the Re spondent in CA 195175 and Res
11 CA 63176
SS Khanduja SK Jain and Mrs Laxmi Arvid for Re spondent Nos
12 In CA 63176
The Judgment of the Court was delivered by SHINGHAL J
These two are companion appeals by special leave
They have been heard together at the in stance
of the learned counsel for the parties and will be disposed by a common judgment
Appeal No 1951 of 1975 is directed against the award of the Industrial Tribunal Gujarat dated September 24 1975 in the dispute between the Alembic Glass Industries Ltd Baroda and its workmen while appeal No 631 of 1976 arises out of the Tribunal s award in the dispute between Jyoti Limited Baroda and its workmen
Speaking broadly the dispute in both cases related to the workmen s demand for 10 days sick leave with retrospective effect and its accumulation over a period of three years ie upto 30 days
The workmen particularly felt aggrieved because by virtue of the first proviso to section 49 of the  hereinafter referred to as the Act they were not entitled to the sickness benefit for the first two days of sickness except in the case of a spell of sickness following at an interval of not more than 15 days the spell of sickness for which sickness benefit was last paid
It was also a grievance that the benefit under the scheme of the Act was much less than the normal earnings of an employee and was not beneficial to the workmen
The demand was resisted by the Companies in both cases
In the case of the Alembic Glass Industries Ltd it was contended that the Act provided more than adequate sickness benefits and any additional 82 benefit would place unproductive financial burden on the industry and would have an all round adverse effect on other industries
It was also urged that section 99 of the Act gave wide powers to the Employees  State Insurance Corpora tion to enhance the benefit and it was therefore the proper authority to examine the demand
The Company also contended that there was no practice of giving any such sick leave in the industries in Baroda or in the State of Gujarat
In the case of Jyoti Ltd an objection was taken that the reference was incompetent and the Tribunal had no jurisdiction to entertain it
It was also pointed out that the benefit of sickleave of 7 days per year was initially given to the workmen under an award dated August 29 1958 which contained a specific direction that it would be automatically discon tinued when the benefits of the Employees  State Insurance scheme would become available to the workmen and also that the reasonableness of the demand could not be examined by the Tribunal
An objection was also taken that the workmen had benefited a lot under the entire scheme of the Act and it would not be reasonable and proper to confer any addi tional benefit as the demands would place a heavy financial burden on the Company which it Could not bear
The demand according to the Company would create an absurd position inasmuch as a worker would receive more wages by remaining absent than on duty
The Company also pleaded that the demand for sickness leave could not be granted retrospec tively or allowed to accumulate
While the reference in the case of Jyoti Ltd Baroda was still pending the Tribunal gave its award dated Septem ber 24 1975 in the case of the Alembic Glass Industries Ltd The Tribunal inter alia awarded 7 days sick leave with full pay and dearness allowance to the workmen of that Company in a year with the facility of accumulation upto 21 days
It was stated before the Tribunal on behalf of the workmen of Jyoti Ltd that the arguments advanced and the contentions made in the case of the Alembic Glass industries may be considered as those made in their case also
The reference in the case of Jyoti Ltd proceeded accordingly and resulted in the award dated March 9 1976 to which reference has been made above
The award was on the lines of the earlier award in the case of the Alembic Glass Indus tries case except that the direction regarding 7 days sick leave was given retrospective effect from January 1 1975
The Company applied for and obtained special leave to appeal as aforesaid with the further direction that the appeal may be heard along with the identical matter in the Alembic Glass Industries case
This is why these two have become companion appeals and are being disposed of together
The controversy in these cases is whether the benefits admissible under the Act in the matter of the grant of sick leave are such as to justify the rejection of the workmen s demand and the setting aside of the Tribunal s awards in that respect
It has been argued by the learned counsel for the appel lants that as the benefits of sections 47 and 49 of the Act are already admissible to workmen in Baroda with effect from December 14 1969 and they are quite adequate the Tribunal committed an error 83 of law in granting the additional benefits mentioned above
Reference in this connection has been made to section 61 of the Act which provides that when a person is entitled to any of the benefits provided by the Act he shall not be enti tled to receive any similar benefit admissible under the provisions of any other enactment
The argument was raised in the Tribunal but was rejected
A similar question arose for consideration in The Hindustan Times Ltd New Delhi vs Their Workmen1 and was answered as follows by this Court Mr Pathak has tried to convince us that in view of the provisions of the  no provision need be made about sickness leave at all
That this Act has been applied to the Company and that the workmen of the Company get the benefit of this Act is not disputed
It is difficult to see however how the benefit that the workmen will get under this Act can affect the question of sickness leave being provided for the workmen
This Act it has to be noticed does not provide for any leave to the workmen on the ground of sickness
It provides in section 461a for periodical treatment of any insured person in case of his sickness if certified by a duly appointed medical practitioner
It is unnec essary to mention here the several provisions in the Act viz Sections 47 48 and 49 which deal with the eligibility of workmen for sickness benefit and the extent of the benefit that may be granted
Section 56 of the Act pro vides for medical benefits to the insured workmen or in certain cases to the members of his family
It appears to us clear however that in providing for periodical payments to an insured worker in case of sickness sickness benefit or for medical treatment or attendance to him or the members of his family the legislature did not intend to substitute any of these benefits for the workmen s right to get leave on full pay on the ground of sickness
 The matter came up again for consideration by this Court in Technological Institute of Textiles vs Its Workmen and others2 and it was held as follows with specific reference to the first proviso to section 49 of the Act according to which a person qualified to claim sickness benefit is not enti tled to it for the initial waiting period of two days except in the case of continuous illness of the nature mentioned therein With regard to sick leave the argument on behalf of the appellant was that benefits were granted by the  but that is not a bar to the demand of the workmen for sick leave
The reason is that the first proviso to section 49 of the Employees  State 1 1964 1 SCR 234
2 1965 2 L L3149
84 Insurance Act states that a person qualified to claim sickness benefit shall not be entitled to the benefit for an initial waiting period of two days except in the case of a spell of sickness following at an interval of not more than fifteen days the spell of sickness for which benefit was last paid
It is apparent that the Employees  State Insurance Scheme does not cover all contingencies of sickness and in any event the first two waiting days are not covered
In our opinion the tribunal was there fore justified in its view that the workmen are entitled to 7 days  sick leave with wages on pro duction of a medical certificate
 It would thus appear that the Scheme of the benefits admissible under the Act cannot be said to cover the work men s demand for sick leave to the extent allowed by the Tribunal
Section 61 of the Act cannot thus be said to be applicable for the simple reason that the benefits granted by the Tribunal are not similar to those admissible under the Act
The Act does not in fact deal with the question of sickness leave
The other question regarding the adequacy of the sick ness benefit under the provisions of the Act has been exam ined by the Tribunal with reference to the reports of the National Commission of Labour 1969 the Labour Laws Review Committee and the Norms Committee of Gujarat State which go to show that the benefit cannot be said to be adequate for it works out to about half the average wage of a workman and even that amount is not admissible for the first two days of sickness except in the case of a spell of sickness following at an interval of not more than 15 days the spell of sickness for which the sickness benefit was last paid
It has to be appreciated that a workman is prevented from earning the normal daily wages during the period of his illness and there is no justification for the argument that the rate of benefit at about half his wage under the Act should be considered sufficient so as to deny him the bene fit of sick leave on full emoluments for a period of 7 days when he is certified by a competent medical officer to be ill for that or a longer period
Sickness is a serious misfortune to a workman for it not only prevents him from earning his normal wages but is a drain on his meagre financial resources by way of additional expenditure on food nursing and visits to the medical centre etc
It has not been disputed before us that the region cure industry basis is suitable in cases like the present for examining any controversy regarding the work man s demand for additional benefits but it has been argued by the learned counsel for the appellants that the award of the benefit of sick leave to the workers of the two Compa nies could not be justified on that basis
We find that the Tribunal has examined this aspect of the controversy also and we have no reason to disagree with the view which it has taken
As has been stated the Act came into force in the region concerned on December 14 1969 and it has not been disputed before us that till then it was the practice in the glass industries to grant sick leave with wages for periods varying from 6 to 10 days
In fact in the 85 case of the Alembic Glass Industries Ltd Baroda the Tribunal made an award for 7 days sick leave on full pay and dearness allowance in 1958 subject to the condition that the benefit would cease to apply when the benefits of the Act became available to the workmen
The benefit of sick leave was therefore lost when the Act was made applicable to the region from December 14 1969
That was obviously under a mistaken impression of the sickness benefit which the Act allowed for as has been shown it does not deal with all aspects of the demand for sickness benefit and does not at any rate provide for the grant of leave on full emoluments during the period of the workman s physical incapacity to earn his normal wages because of his sickness
It there fore appears that the Tribunal could not be said to have erred in restoring the benefit which the workmen were re ceiving under the award of 1958 for it was taken away under the mistaken impression that it had been adequately replaced by the new provisions on the coming into force of the Act
The appellants have filed a statement exhibit 7 containing information regarding the companies which have provided the benefit of sick leave to its workmen in the region
It shows that even though the Act was applicable to the workers of the Precision Bearings India Ltd Baroda Hindustan Brown Bovari Ltd Baroda the Associated Cement Companies Ltd and MS University Press Baroda the benefit of sick leave has been allowed to the workmen of
those companies
It is therefore futile to contend that the benefit should not be admissible on the ground that it had not been allowed by other companies in the region
We also find that such a benefit has been allowed in the case of glass industries by Shree Vallabha Glass Works Ltd Vallabh Vidyanagar Ogale Glass Works Ltd Oglewadi and Vijay Glass Works Bombay
Even the Alembic Glass Industries Ltd has allowed 6 days sick leave in a year to its employ ees in Bangalore and it is permissible to accumulate it upto 12 days in addition to the current year s leave under a settlement dated July 17 1969 which is being continued even after the coming into force of the Act
Learned coun sel for the appellants have invited our attention to the case between the Textile Labour Association and the Ahmeda bad Millowner s Association where the demand for sick leave was refused but as the Tribunal has pointed out the demand there was for a month s leave every year in addition to 15 days casual leave and pay in lieu of privilege leave
The Full Bench of the Industrial Court in that case considered the paying capacity of the mills also and held that the additional leave demanded by the workmen would be very much beyond the paying capacity of the industry
As against this the Tribunal has examined the financial capacity of the two companies in question and has given adequate rea sons for holding that they are in good financial position and can bear the additional burden of sick leave
Learned counsel for the appellants have in fact not advanced any argument to the contrary
Mr ST Desai has raised the argument in the case of Jyoti Ltd Baroda that the Tribunal laboured under a misconception that 86 the sickness benefit would be lost for the first two days of sickness under the first proviso to section 49 of the Act that the Tribunal should not in any view of the matter have given the benefit of 7 days sick leave and that the workmen did not deserve anything more than sickness benefit for the first two days also
According to him what has been awarded by the Tribunal is additional privilege leave for 7 days in the garb of sick leave
The argument is however futile because as has been stated the Tribunal has cor rectly examined the controversy and given adequate reasons for allowing the benefit of 7 days sick leave in the manner set out in the award
Such a leave could not be categorised as privilege leave as by its very nature it would be admissible only in the case of actual sickness certified by a registered medical practitioner
It would thus appear that the appellants have not been able to show that the awards in question are illegal or unjust or would adversely affect the economy or the indus trial peace or lead to imbalance in the conditions of service in other industrial establishments
It appears however that it was not necessary in the circumstances of the case to award the benefit of the sick leave with retro spective effect from January 1 1975 in the case of Jyoti Ltd Baroda
The appeals therefore fail and are dismissed except that the award in the case of Jyoti Ltd Baroda is made effective from the date of its commencement
The appellant companies shall pay to the workmen  the costs of these appeals one set of counsel s fees
PBR Appeals dismissed


Summary:
The workmen s demand for grant of sick leave and its accumulation upto a period was rejected by the employers on the ground that the provided more than adequate sickness benefits and that any additional benefits would place a financial burden on the industry and would adversely affect other industries in the region
The Tribunal to which the dispute was referred partly granted the workmen s demand
On appeal to this Court it was contended that section 61 of the debarred a person enti tled to any of the benefits under that Act from receiving similar benefit under the provisions of any other Act and as such the workmen were not entitled to the benefit of sick leave
Dismissing the appeals HELD 1 The  does not deal with the question of sick leave
The scheme of the benefits admissible under the Act does not cover the work men s demand for sick leave to the extent allowed by the Tribunal
Section 61 is not applicable because the benefits granted by the Tribunal are not similar to those admissible under the Act
84 C The Hindustan Times Ltd New Delhi vs Their Workmen 1964 1 SCR 234 and Technological Institute of Textiles vs Its Workmen and others applied
2 Sickness benefit under the Act cannot be said to be adequate for it works out to about half the average wage of a workman which benefit is not admissible for the first two days of sickness except under the conditions provided in the Act
A workman is prevented from earning the normal daily wages during the period of his illness and there is no justification for the argument that the rate of benefit at about half his wage under the Act should be considered sufficient so as to deny him the benefit of sick leave on full emoluments for a period of 7 days when he is certi fied by a competent medical officer to be ill for that or a longer period
Sickness is a serious misfortune to a work man for it not only prevents him from earning his normal wages but is a drain on his meagre financial resources by way of additional expenditure on food nursing and visits to the medical centre etc
84 E F 3 The Tribunal could not be said to have erred in restoring the benefit which the workmen were receiving under an earlier award
The benefit of sick leave to the employ ees in the region was lost when the Act was made applicable to the region from December 14 1969
This was obviously under a mistaken impression
The Act does not deal with all aspects of sickness benefit and does not provide for the grant of leave on full emoluments during the period of a workman s physical incapacity to earn his normal wages because of his sickness
85 B C 4 There is no force in the argument that the Tribunal had granted additional privilege leave for 7 days under the garb of sick leave because by its very nature sick leave would be admissible only in the case of actual sickness certified by a registered medical practitioner
86 B 5 There is no evidence to show that the benefit had not been allowed by other companies in the region
The Tribunal had examined the financial 81 capacity of the companies and had given adequate reasons for holding that they were in good financial position and could bear the additional burden
85 H 6 It has not been shown that the awards are illegal or unjust or would adversely affect the economy or the indus trial peace or lead to imbalance in the conditions of service in other industrial establishments
86 C