l Appeals Nos
1091 to 1093 of 1971
Appeals by special leave from the award dated April 15 1971 of the Industrial Tribunal Maharashtra Bombay in References IT Nos 20 of 1969 70 of 1970 and 105 of 1969
VM Tarkunde R A Jahagirdar and IN Shroff for the appellant in all the appeals
KT Sule
Janardan Sharma and Indira Jaisingh for respondent No 1 in all the appeals
Urmila Kapoor and Kamlesh Bansal for respondent No 2 in all the appeals
The Judgment of the Court was delivered by Vaidialingam J
These three appeals by special leave arise out of the Award dated April 15 1971 of the Industrial Tribunal Maharashtra Bombay in Reference IT Nos 20 and 105 of 1969 and 70 of 1970
The main questions that arise for consideration in these appeals relate to the award of Dearness Allowance Classification of Grades and Fixation of Wages and a direction given by the Industrial Tribunal regarding the Incentive Bonus Scheme as modified by the Company
There is also a minor point regarding a particular clause in the Gratuity Scheme as framed by the Tribunal in Reference IT No 20 of 1969
Though there are certain other matters dealt with in the Award in Reference IT No 20 of 1969 they are not the subject of controversy in these appeals
We will now state the circumstances under Which the Refer ences came to be made to the Tribunal
570 The appellant was started as a proprietary concern in the year 1944 and was later transformed to a public limited Company and registered as such under the Indian Companies Act 1962
From its inception the Company has been dealing in the business of manufacturing and selling pharmaceutical products
It had its factory in Jogeshwari in Greater Bombay
At the time of the Reference the Company was employing about 714 workmen of whom 558 were operatives and 156 were members of the clerical and subordinate staff
All these employees were covered by the demands comprised in all the References
The wage scales of the workmen had been determined originally in Reference ITNo 23 of 1959
The wage scales of the operatives were as follows Unskilled A Rs 1 52 0 092 23 0 12 2 93
Unskilled B 125 096 185 009 230 Semi skilled A 2 00 0 12 2 72 0 18 3 80
Semi skilled B 1 76 0 11 2 64 0 15 3 39
Skilled 2 59 0 13 2 85 0 22 3 95 0 30 4 25
The wage scales of the clerical and subordinate staff were as follows 200 260 Junior Chemist Rs 120 10 12 Manufacturing Assistant140 10 220 15 310 Store keepers Store Assistants 180 10 260 15 350 Stenographers Junior Clerk 60 8 90 10 146 EB 15 215
Intermediate Clerks75 8 115 12 175 EB 15 250
Senior Clerks 115 10 255 15 315 EB 20 395
 In addition to the basic wages referred to above the employees were getting dearness allowance which in the case of operatives was equal to 80 of the revised textile scale of dearness allowance and in the case of clerical and subordinate staff 100 of the revised textile scale of dearness allowance
The nomenclature of the grades of the operatives was changed by a consent award in Reference IT No 170 of 1961
The grades and wages as per this award were as follows Unskilled Rs 1 25 0 06 1 85 0 09 2 30 Semi skilled A 1 52 0 02 2 33 0 12 2 93 Semi skilled B  1 76 0 11 2 64 0 15 3 39 Skilled 2 00 0 12 2 72 0 18 3 39 Highly Skilled 2 59 0 13 2 85 O 22  3 95 
O 30 4 25
 The dearness allowance of the operatives and clerical and subordinate staff underwent a change by the award in Reference IT No 402
of 1963
Under that award the dearness allowance 571 of the operatives was increased to 90 of the revised textile scale of dearness allowance from January 1 1964 and to 95 of the revised textile scale of dearness allowance from July 1 1964
The dearness allowance of the clerical and subordinate staff was supplemented at different slabs with effect from January 1 1964 as follows  Basic salary upto Rs 100 Basic salary of Rs 101 to 200 Basic salary of Rs 201 to 300 Basic salary of over Rs 300 
Operatives  dearness allowance plus Rs 7 50 Operative   dearness allowanceplus Rs 15
Operatives dearness allowance plus Rs 22 50
Operatives  dearness allowance plus Rs 25
 Though the award prescribed to the clerical and subordinate staff the same rate of dearness allowance of the operatives plus a fixed amount as referred to above the Company continued to give them dearness allowance equal to 100 of the revised textile scale of dearness allowance
This was also supplemented with the fixed amount depending upon the slab of the salary
There was a settlement on June 24 1966 between the Company and its employees in and by which the wages of the opera tives and the clerical and subordinate staff underwent a final revision
The wages of the operatives were fixed as follows Unskilled Rs 1 25 0 10 2 75
Semi skilled B 1 60 0 12 2 32 0 15 3 67
Semiskilled A 1 80 0 15 2 85 0 20 4  45 Skilled 2 10 0 203 10 0 25 5 10
Highly skilled 2 75 0 20 3 75 0 25 5 00 0 30 6 50
 Similarly the wages of the clerical and subordinate staff were as follows  Junior Clerk Rs 75 6 105 10 155 15 260 E B 17 311
Intermediate Clerk 90 8 130 12 190 15 295 E B 18 349
Senior Clerk 125 10 195 15 270 20 390 E B 25 440
Steno and Storekeeper180 10 260 15 380 E B 20 4 460
 The above basic scales in respect of all the categories were again supplemented by dearness allowance as provided for in the award passed in Reference IT No 402 of 1963
The Company had also an Incentive Bonus Scheme by virtue of which a large number of operatives were getting on an average an additional sum of Rs 28 per month
The Company further revised 572 from about November 1 1969 the wage scales of Drivers and Watchmen as follows  Drivers Rs 70 6 100 9 145 12 205 E B 15 250
Watchmen 45 4 65 6 95 E B 8 135
The above was the pattern of the wage structure and dearness allowance for the operatives and the clerical and subordinate staff
The Unions concerned made a demand for introducing the following scheme of dearness allowance in respect of all the workmen with immediate effect  Wage slab 
When the working classVariation in the cost of living in dearness allow dex figure is inance for every 10 the group of 401 points rise or 410
upto 100 100 per cent 5 per cent From Rs 101 to 200 50 per cent2 12 per cent From Rs 201 and above 25 per centII percent Minimum dearness allowance Rs 100
Minimum variation Rs 5
 They also demanded that the above scheme of dearness allow ance was to have retrospective effect from August 1 1967
In the same demand the Unions required that the workmen should be granted one month s wages for every year of service as gratuity in case of resignation dismissal discharge death or termination of service for any reason
By this demand the Unions required modification of the then existing pattern of payment of dearness allowance at 95 of revised textile scale of dearness allowance to operatives and 100 of revised textile scale of dearness allowance plus Rs 750 to Rs 25 paid to the clerical and other staff
The Company did not agree to the demand and in consequence by order dated January 14 1969 the Government of Maharashtra referred for adjudication to the Industrial Tribunal the demands
This Reference was registered as Reference IT No 20 of 1969
The Unions again made a demand for revision of scales of pay as well as the classification of employees their grades and their fitment in the revised scales of pay
As against the then existing six categories of workmen and their wage scales of the operatives the Unions demanded new classification and gradation into eight grades with new wage scales
Similarly as against the then existing five grades of the clerical and subordinate staff the Unions demanded the creation of six categories with enhanced wage scales
These demands again were not accepted by the Company which led to the State Government making a reference Oil January 9 1970 which reference was registered as Reference IT No 70 of 1970
573 The Company some time in the year 1959 had introduced an Incentive Bonus Scheme
This was introduced according to the appellant because of the fact that the workmen were not giving a substantial production
The basis of the scheme introduced by the appellant was that if the workmen gave only 30 of the 100 production expected of them their performance would be considered zero
On the other hand if they gave production above 30 and upto 100 they would be eligible for payment of Incentive Bonus which would be from 31 to 100 points
In other words for the 70 points above the first 30 points the workmen would get Rs 501 as Incentive Bonus which would work out approximately to about Rs 7143 per point
The appellant desired that the then existing floor limit of 30 ought to be raised to 75 without varying the quantum of Rs 501 that was originally payable on achievement of 100 production
What was intended was that the 25 points between 75 and 100 points Were to be made eligible for payment of Incentive Bonus of Rs 2 for each point
The Company served a notice of change on the workmen under section 9A of the 
As the workmen protested against this change this led the Government to make a Reference to the Industrial Tribnual for adjudication
This was numbered as Reference IT No 105 of 1969
The appellant resisted the claims made for revision of dearness allowance and wage scales as well as the modification sought for in the gratuity scheme
The appellant also wanted the Tribunal to uphold the notice of change given by it under section 9A of the in respect of the Incentive Bonus Scheme
In particular the appellant contended that it was not a comparable concern with the units referred to by the Unions and that any modification in the scale of dearness allowance and wages would be beyond its financial capacity
The appellant also relied oil the coming into force of the Drugs Price Control Order 1970 with effect from May 16 1970
According to the appellant the wages and dearness allowance paid by it to the workmen were far higher than what were paid by other units in the region
The Company also referred to the various awards wherein it had been held that it could not be compared with an International Company having branches in Bombay or with foreign concern though incorporated in India
The wage scales had been fixed by Settlement dated June 24 1966 and that nothing has happened since the date of Settlement to justify a revision of wage scales and dearness allowance
The appellant further urged before the Tribunal that the double linking of dearness allowance as required by the Unions had never been adopted for the Pharmaceutical units in the Bombay region
According to the appellant the revision 574 effected regarding the Incentive Bonus Scheme was justified and the amount of 2 offered per point was much more than the prevailing rate of Rs 7143p
per point
It also opposed the revision of the then existing gratuity scheme as demanded by the Unions
According to the appellant the gratuity scheme which was in force had been introduced by a consent award in 1963
The appellant filed copies of balance sheets and profit and loss accounts from 1962 63 to 1969 70 and various other charts in support of its plea that it will not be able to bear the additional financial burden that would result if the wage scales and dearness allowance are revised as per the demands made by the Unions
It will be seen from the facts mentioned above that thr main controversy between the parties related to the revision of wage structure and dearness allowance
As the demands of the workmen related to regrouping in different grades the operatives and the clerical and subordinate staff and as this involved a very radical change in the existing pattern of grades the Tribunal felt that the opinion of an expert should be obtained on the advisibility of the reclassification
In this regard both the Unions and the against filed a joint application on December 22 1970 requesting the Tribunal to appoint Sri N L Gadkari retired Chief Inspector of Factories Maharashtra State as an assessor
They also prayed that the points mentioned in the application be referred for the opinion of the assessor
The Assessor submitted his report on February 22 1971 in which he recommended the continuance of the then existing grades
The Unions while demurring to the report of the Assessor requested the Tribunal by their application dated March 25 1971 to fix for the then existing five grades the following wage scales Unskilled 
Rs 85 8 125 10 225 Semi skilled B 100 10 150 12 210 15 285
Semi skilled A 120 12 180 15 255 18 345
Skilled 140 15 215 18 305 20 405
Highly skilled 225 25 350 30 500 35 675
 The appellant when the Reference came up for hearing raised an objection to the selection of wage scale by the Unions for the existing grades of the operatives on the ground that such a selection was not permissible being contrary to the provisions of s104 of the 
The Unions ultimately made it clear to the Tribunal that their demand for revision of wage scales of the existing five grades of operatives is to be as follows  Unskilled Rs 60 5 85 7 155
Semi skilled B 70 6 100 8 180
Semi skilled A 85 8 125 10 225
Skilled 100 10 150 12 210 15 285
Highly skilled 120 12 180 15 255 18 345
 575 It is on the basis of this claim that the question of revision has been dealt with by the Tribunal
Regarding the financial incapacity pleaded by the appellant the Tribunal after an analysis of the balance sheets and profit and loss accounts held that the average net profit of the Company during the years 1965 66 to 1969 70 works out to about Rs 1384691 
It is also of the view that the apprehensions of the appellantregarding the possible impact of the Drugs Price Control Order 1970 are not justified
It is the view of the Tribunal that in spite of the price freeze effected in 1963 the appellant has been doing very good business from 1962 63 to 1969 70
Ultimately the Tribunal found that the financial condition of the appellant is quite sound
Regarding the comparable concerns in the region the Unions referred to as many as twenty units
One of the units relied on as comparable with the appellant was Ms Burroughs Wellcome  Co India Private Ltd Bombay
The appellant opposed its being compared with the concerns relied on by the Unions on the ground that those units were either foreign concerns doing business in India or Indian units working in collaboration with foreign concerns
The appellant in turn relied on several other concerns as being comparable with it
The appellant very strongly relied on certain previous awards in support of its contention that it has been held in those awards that the appellant cannot be compared with foreign concerns or with the concerns working in collaboration with foreign concerns
The Tribunal after a consideration of the materials placed  before it in this regard ultimately held that Ms Burroughs Wellcome  Co India Private Ltd was a unit which could be considered as a comparable concern with the appellant
The Tribunal having regard to the grades and scales of pay obtaining in Ms Burroughs Welcome  Co India Private Ltd held that the wage scales for the five grades for the operatives of the appellant should be as follows  Unskilled 
Rs 42 3 71 4 112 Semi skilled B 47 3 50 82 4 122 Semi skilled A 50 4 90 5 50 134 Skilled 55 5 50 110 6 50 155 50 High skilled 72 7 142 8 182 9 5C 220
 The Tribunal fixed the following grades and scales of pay for the clerical and subordinate staff Junior Clerks and Laboratory Assistants Rs 85 7 50 145 10 195 12 259 17 323 Intermediate Cierks 120 10 200 12 260 15 335 18 353 Senior Clerks 185 15 305 20 365 25 465 576 The Tribunal did not accept the large demand made by the Unions for a general adjustment in increments of the employees
Nevertheless in view of the revision of the scales of wages it gave certain directions so that the employees may be fitted in the appropriate revised wage scales
The parties very hotly contested the question of dearness allowance as well as the pattern to be adopted
As there were different systems of dearness allowance for the operatives and the clerical and subordinate staff the Unions desired that a common scheme of dearness allowance on a slab system should be adopted
The Tribunal having regard to the decisions of this Court in Greaves Cotton and Co and others vs Their Workmen1 and Bengal Chemical  Pharmaceutical Works Ltd vs Its Workmen2 held that there was no justification for having two systems of dearness allowance one for the operatives and the other for the members of the clerical and subordinate staff
Accordingly the Tribunal held that all the employees should get the same dearness allowance irrespective of the fact whether they were operatives or members of the clerical and subordinate staff
As the dearness allowance has to be fixed on industry cum region basis the Tribunal examined the system of dearness allowance followed in the region by the industries belonging to the pharmaceutical units
The Unions had submitted statements Exs
DU 1 and MU 1 containing a list of pharmaceutical units in support of their contention that such units were adopting a slab system of dearness allowance
The Company on the other hand referred to certain awards of the Industrial Tribunals in support of its stand that slab system of dearness allowance is not considered as an appropriate mode of providing neutralization
The Unions also relied on certain awards wherein the slab system of dearness allowance had been introduced by the Industrial Tribunals
Though the Tribunal had held that most of the units referred to in Exs
DU 1 and MU 1 cannot be considered for the purpose of being treated as units comparable with the appellant nevertheless it held that the practice adopted by those units regarding the grant of dearness allowance can be taken into account as providing a guide regarding the system of dearness allowance adopted in the region
On this basis the Tribunal accepted the statements in Exs
DU 1 and MU 1 and held that the slab system of dearness allowance was prevalent in a large number of units belonging to pharmaceutical industry
In this view the Tribunal further held that slab system of dearness allowance can be adopted if the financial burden consequent on the adoption of the said system can be safely borne by the Company
1 2 577 The Tribunal then proceeded to consider the system obtaining in Burrough Welcome Company regarding the payment of dear ness allowance
The system in the said Company which was common for operatives as well as the clerical and subordinate staff was as follows Basic Salary Dearness allowance per Variationfor month at the Bom points
bay working class cost of living index 491 500
Rs 1 100
150 percent 5 Per cent Rs 101 200 1 50 Per cent on the 1st 21 Per cent Rs 100
71 Per cent on the balance
Rs 201 300 150 per cent on the 1st 114 per cent
Rs 100
721 Per cent on the 2nd Rs 100 and 36 14 per cent on the balance
Minimum Dearness allowance Rs 4 Rs 101
In the said Company the above scale of dearness allowance was however limited only to employees drawing a basic salary upto Rs 360 per month
The appellant accepted before the Tribunal that the scheme of dearness allowance obtaining in Burroughs wellcome Company would cast a lesser financial burden than the scale of dearness allowance as demanded by the Unions
In fact the Company had filed two charts Exs
C 12 and C 13 showing the burden which it will have to bear if the scheme of dearness allowance as demanded by the Unions was introduced
 The Company had worked out the demands in different ways and that is why it filed two statements
According to the appellant the additional financial burden will be about Rs 87812500 as per exhibit C 12 and Rs 125269300 as per exhibit C 13
The Tribunal is of the view that under exhibit C 13 the Company had taken into account a sum of Rs 18629300 payable to some members of the staff drawing a salary of over Rs 200per month and amongst whom were also included 52 chemists
According to the Tribunal the 52 chemists are not covered by the Reference and therefore the burden will have to be calculated only in respect of the workmen covered by the Reference and to whom dearness allowance is being fixed
On calculation the Tribunal found that about a lakh of rupees payable to 52 chemists and included in exhibit C 13 by the appellant will have to be deducted from Rs 125269300 Accordingly it held that as per the calculation of the appellant under exhibit C 13 leaving out the 52 chemists the total burden will only be Rs 1152693 00
Taking 578 into account the tax relief that the Company will get the Tribunal ultimately held that the additional financial burden that the appellant will have to bear will only be Rs 55500000
As it had already held that the average annual gross profits of the Company are over Rs 400000000 the Tribunal held that the Company can easily bear this additional burden
The Tribunal is further of the view that though the financial impact of the Drugs Price Control Order on the business activities of the Company has had to be seen the impact will not be such as to make the appel lant s financial position difficult
For all these reasons the Tribunal fixed for the operatives and the clerical and subordinate staff of the appellant dearness allowance on a system prevalent in Burroughs Wellcome Company
The system of dearness allowance fixed by the Tribunal is as follows  Basic salary Dearness allowance per Variation month at the Bom bay working class cost of living index 521 530
Rs 1 100 150 per cent Rs 101 200 150 per cent on the 1st Rs 100
72 12 per cent on the balance
Rs 201 300 150 Per cent on the 1st 100 Rs72 12 Percenton the 2
Rs 100
36 14 per cent
on the balance
Minimum dearness allow ance Rs 101 _ percent _ 12 per cent Rs 4
The Tribunal has further directed that dearness allowance in accordance with the above scheme will be payable only to em ployees drawing a basic salary upto Rs 300 per month
It will be seen that the Tribunal while adopting the scale of dearness allowance obtaining in Burroughs Wellcome Company has made a departure in fixing the scale of dearness allowance on the basis of the Bombay Working Class Cost of Living Index 521 to 530
The dearness allowance scheme obtaining in Burroughs Wellcome Company was on the Bombay Working Class Cost of Living Index 491 to 500
The dis rent cost of living index was adopted by the Tribunal in view of the fact that the appellant was Paying incentive wages to its operatives and with a view to lessen the financial burden on the Company
Another feature of the scheme adopted by the Tribunal is that it puts a ceiling on the employees drawing basic wages upto 579 Rs 300 per month alone being eligible for dearness allowance whereas under the practice originally obtaining in the Company there was no such limit
The Tribunal held that the revised wage scales and dearness allowance would be effective from October 1 1969 and directed the Company to pay the arrears within three months from the date of the Award becoming enforceable
At this stage it may be mentioned that the appellant is not challenging this direction regarding the date from which the wage scales and dearness allowance are to take effect though it very vehemently attacks the fixation of the scale of revised wage scales and dearness allowance by the Tribunal
Regarding gratuity the Company had already a scheme which had been introduced under the Settlement Award in Reference IT No 141 of 1962
It is not necessary to set out the scheme that was prevalent in the Company because the only
objection of the appellant to the revised scheme evolved by the Tribunal is in respect of raising the ceiling from 15 months to 17 12 months
The demand in this regard by the Unions was that the ceiling should be raised from 15 months basic wages to 20 months basic wages
However the Tribunal did not accept the claim of the Unions in toto
On the other hand it adopted the practice obtaining in the Burroughs Wellcome Company and accordingly fixed the ceiling at 17 12 months basic wages
Regarding the notice of change issued to the workmen by the appellant under s9A of the proposing to alter the existing floor limit of 30 to 75 in the Incentive Bonus Scheme the Tribunal on the joint application of the parties dated April 10  1970 appointed on April 28 1970 Sri B Tulpule as Assessor to examine the question of revising the existing scheme of Incentive Bonus
The Assessor submitted his report on August 27 1970 making the following recommendations  1 The base performance index for all sections in the Company s factory should be revised and raised to 60 per cent
2 Consequent upon the revision of the base index as above an amount of Rs 100 per day should be added to the basic wages of the workers this addition being independent of any other revision of the wage structure that the Tribunal may decide upon
3 The revised rates of incentive should continue beyond 100 pet cent performance Though the Unions generally accepted the recommendations the appellant was opposed particularly to the second and third 580 recommendations
The Tribunal after a consideration of the objection is of the view that recommendations Nos 2 and 3 were beyond the scope of the terms of reference made to him
Therefore those two recommendations were negatived
Regarding the first recommendation it is stated by the Tribunal that the Unions accepted the same and that the Company also was not opposed to that suggestion made by the Assessor regarding the raising of the base performance index to 60
In dealing with this aspect the Assessor in his report had stated as follows If the base index of any incentive scheme is raised from X to Y the workers will stop getting the incentive earnings which they used to get for the performance range from X to Y This is also the main anxiety expressed by both the Unions in the present case
At the outset I asked the management whether the implication of their proposed change was such a reduction in the workers  total pay packet at any given level of performance
The management categorically assured me that that is not their intention
Their purpose in proposing the change is stated by them to induce workers to raise their performance above the prevailing level
 The Tribunal in its Award had stated that the matters men tioned in the above paragraph including the assurance stated to have been given by the appellant were not denied
Therefore the Tribunal in view of the common measure of agreement between both the parties regarding the first recommendation is of the view that if the pay packet of the workman is to be protected at the wage raise base index performance of 60 some scheme may have to be worked out
But as the necessary materials for the purpose of evolving a scheme were not available the Tribunal has thrown out a suggestion that the said question should be dealt with by the appellant in consultation with the Unions and frame a scheme by common consent if possible
Accordingly the Tribunal left the matter to the parties to deal with the matter with the observation that if it is found that no scheme could be framed by consent the Unions will be free to raise any dispute that may be available to them in that regard
We have
exhaustively referred to the questions referred to the Tribunal as well as the decision of the Tribunal on those points
In these appeals as mentioned earlier the controversy relate to 1 Scale of Dearness Allowance 2 Fixation of Wage Scales Classification and Grades 3 Raising of the ceiling to 17 2 months basic wages in the gratuity scheme
 and 4 the direction given by the Tribunal
regarding the Incentive Bonus Scheme
581 As the main points in great controversy between the parties before us relate to the pattern of dearness allowance and the classification and grades of employees and the fixation of the revised wage scales we will take up for consideration those matters
The very _first objection of Mr Tarkunde learned counsel for the appellant is regarding the manner of ascertaining grosser of its when revising the wage scales and awarding dearness allowance
We have already pointed out that the Tribunal has proceeded on the basis that the average annual gross profits of the Company are over Rs 400000000
The appellant had submitted balance sheets and profit and loss accounts for the year 1962 63 to 1969 70
It is enough to refer to the particulars that could be gathered for the five preceding years namely 1965 00 to 1969 70
For those years the figures are as follows Particulars 1965 66 1966 67 1967 68 1968 69 1969 70 Paid up capital 4500000 4 50 000 0 4500000 54 00 00 0 Reserves and Surplus 2152186 2925376442151547856975714988 Sales 21997640 23866647 303593803299445637152031 Depreciation 5449195 55035784 8241111775916719 Development rebate 972426 8266105840110858144511 Provision for taxation 1915000 1590300185050016985001639000 Net Block 4601566 4905509 545821257459977375386 Net Profit 954591 1443489 159709416045011323779 From the above statement it will be seen that the average net profits work out to Rs 138469100 The net profits have been arrived at by the Company after deducting taxation depreciation and development rebate
It is on the basis of the net profits so arrived at that the appellant appears to have urged before the Tribunal that the wage scales and dearness allowance are to 1fixed
The Tribunal rejected this contentions
On the other hand the Tribunal has held that when considering a revision of wage structure what is to be taken into account is not the net profit  but gross profits without any deductions having been made for taxa tion depreciation and development rebate
It is on that basis
that the Tribunal held that the average gross profits  of the Company exceed Rs 400000000
The gross profits without deducting taxation depreciation and development rebate for the years 1965 66 to 1969 70 will be
proximately as follows Year Gross profits Rs 1965 66
3511752 1966 6736  57000 1961 6843 37698 1968 6945 25134 1969 7040 24009 9 L1031 Sup
Cf72 582 From the above it will be seen that the figure of Rs 400000000 arrived at by the Tribunal as average annual grossprofits appears to be prima facie correct
Mr Tarkunde learned counsel for the appellant found con siderable difficulty in challenging the view of the Tribunal that gross profits are to be arrived at without decucting taxation and development rebate
He rather strenuously urged that there is absolutely no warrant for arriving at gross profits without deducting depreciation
On the other hand Mr K T Sule learned counsel for the respondent No 1 whose contentions have been adopted by Mrs Urmila Kapoor learned counsel for the second respondent pointed out that the approach made by the Tribunal is correct and is also supported by the decisions of this Court
Mr Tarkunde referred us to sections 205 and 211 of the  as well as  Schedule VI therein
We do not think it necessary to refer to those provisions as in ouropinion they have no relevance or bearing when considering a revision of wages and award of dearness allowance under industrial adjudication
Those provisions are intended for  a totally different purpose
We will presently show by reference to the decisions of this Court that the Tribunal was justified in computing gross profits without deducting taxation depreciation and development rebate
In view of the decisions to which we will immediately refer to Mr Tarkunde was prepared to accept the position that at any rate taxation and development rebate cannot be deducted but he still maintained that depreciation has to be deducted
In Gramophone Company Ltd vs Its Workmen1 this Court in dealing with a gratuity scheme had to consider the principles applicable for ascertaining the financial capacity of an employer
In that decision the employer contended that before the real profit for each year can be4 arrived at the provisions made for taxation and for development reserves should be deducted
On this basis it was further contended that if these deductions are made there will not be any profit left which will enable the Company concerned to frame a gratuity scheme
This claim for deducting taxation and development rebate reserves was negatived by this Court as follows  When an industrial tribunal is considering the question of wage structure and gratuity which in our opinion stands more or less on the same footing as wage struc 11964 583 ture it has to look at the profits made without considering provision for taxation in the shape of income tax and for reserves
The provision for income tax and for reserves must in our opinion take second place as compared to provision for wage structure and gratuity which stands on the same footing as provident fund which is also a retrial benefit
 It was further observed that if an industry is in a stable condition and the burden of provident fund and gratuity does not result in loss to the employer that burden will have to be borne by the employer like the burden of wage structure in the interest of social justice
It was finally held that the contention on behalf of the Company therein that provision for taxation and provision for reserves should take precedence over provision for gratuity cannot be accented
From the above decision it is clear that Fixation of wage structure stands more or less on the same footing as framing of a gratuity scheme and the principles applicable for ascertaining the profits are the same  2 Provision for taxation and provision for reserves cannot take precedence over for gratuity and fixation of wages and 3 The provision for income tax and for reserves must take second place as compared to provision for wage structure and gratuity
The above decision categorically rules out any deduction of taxation
It also excludes from deduction all provision for reserves which will take in depreciation reserve also
But Mr Tarkunde contended that the above decision is an authority for the proposition that the only two items that could be deducted are provision for taxation and provision for development rebate reserve
If so the counsel urges that the deduction of depreciation reserve as claimed by the appellant is justified and that the Tribunal erred in declining that item to be deducted
We are not inclined to accept this contention of Mr Tarkunde
The above decision is in our opinion an authority for the proposition that the provision for taxation and provision for reserves which expression will take in depreciation reserve also cannot be deducted for the purpose of computing the profits
At any rate the said decision had no occasion to consider whether depreciation reserve can be deducted or not
We have already pointed out that the only claim made by the appellant therein was for deducting provision for taxation and for development rebate reserve and that claim was rejected
Therefore looked at from any point of view the above decision is certainly not in favour of the contention of Mr 584 Tarkunde that depreciation reserve has to be deducted before arriving at profits
In The Indian Link Chain Manufacturers Ltd vs Their Work men1 this Court had occasion to consider the principles applicable to ascertain the financial capacity of a company in fixing wage scales and dearness allowance and framing of a gratuity scheme
The Principle applicable was stated as follows It is pertinent to notice that gratuity and wages in industrial adjudication are placed on the same footing and have priority over Income tax and other reserves as such in considering the financial soundness of an undertaking for the purposes of introduction of a gratuity scheme the profits that must be taken info account are those computed prior to the deduction of depreciation and other reserves
 The decision in Gramophone Company vs Its Workmen 2 was quoted with approval in this decision
The Company in that case had calculated profits after deducting depreciation
This method was deprecated by this Court as follows  All these profits it may be mentioned are computed after deducting depreciation and this should betoken into account in considering the desirability of formulating a gratuity scheme for the Appellant
 In the end the provision made for depreciation and which had been deducted by the Company for calculation of profits was added back
From the above decision it is clear that profits are to be computed prior to the deduction of depreciation and other reserves
The said decision directly holds that provision for depreciation and other reserves cannot be deducted in computing profits be ascertained for framing a gratuity scheme
This decision again reiterates the legal position that gratuity and wages in industrial adjudication and placed on the same footing and have priority over Income tax and other reserves
In fact as pointed out by us earlier provision made for depreciation and which had been deducted by the Company for arriving at profits was added back
by this Court
Mr Tarkunde urged that this Court in The Indian Link Chain Manufacturers Ltd vs Their Workmen1 has misunderstood and misinterpreted the earlier decision in Gramophone Company Ltd vs Its Workmen 2  
According to the counsel the error committed by this Court was on proceeding on the basis that the decision in 1  2 19642 LLJ 131
585 Gramophone Company Ltd vs Its Workmen1 has laid down that depreciation reserve should not be deducted in computing the profits available for framing a gratuity scheme or when fixing a wage scale We have no hesitation in rejecting this contention of Mr Tarkunde
We have already expressed our views regarding the scope of the decision in Gramophone Company Ltd vs Its Workmen1 and no error has been committed by this Court in The Indian Link Chain Manufactures Ltd vs Their Workmen2
On the other hand the latter decision is directly in point to the effect that provision for depreciation cannot be deducted
We may also refer to the observation of this Court in Ahme dabad Millowners  Association Etc
vs The Textile Labour Association3 that  it is the figure of gross profit which is more important because it is not disputed that wages payable to the employees are a first charge and
all other liabilities take their place after the wages
 Mr Tarkunde referred us to the statements contained in certain leading text books on principles of Accounting Book Keeping and Accounts and Accountancy regarding the nature of depreciation reserve
In Principles of Auditing by F R M De Paula 8th Edition it is stated that the main object of providing for depreciation of wasting assets is to keep the original capital intact
In Balance Sheets how to read and understand them by Philip Tovey3rd Edition the distinction between a Reserve and Depreciation has been stated
The author says that depreciation should be written of before arriving at the year s profit and that reserve is built up by setting aside portions of the profits itself
The author proceeds to state that depreciation represents the estimated wear and tear which will ultimately reduce the property and plant to scrap value
In Book Keeping and Accounts by Cropper Morr s and Fison 19th Edition when dealing with the Trial Balance Trading and Profit and Loss Accounts it is mentioned that depreciation is the term employed by the Accountants to indicate the gradual deterioration both in the value and the usefulness of those assets which by reason of their nature and uses steadily decline in value
Again in Accountancy by William Pickles 3rd Edition the author has defined Depreciation as the permanent and continuing diminution in the
quality quantity or value of an asset
it Is further stated that the provision for depreciation does not depend upon what the business can afford as the debit therefore is an 1 1964 2 LLJ131 2  3  586 essential one constituting not an appropriation of but a charge against profits for the period in question
Based upon the above statements contained in the text books referred to above Mr Tarkunde urged that the principle in Accountancy is that depreciation must be deducted before ascertaining the profits
In our opinion the above statements may have considerable bearing in the preparation of profit and loss accounts having due regard to the provisions of the and Mercantile usage but they have no bearing on the question of fixation of wage structure and dearness allowance in an industrial adjudication
From what is stated above it follows that the Tribunal was justified in arriving at gross profits without deducting the provision for Depreciation
As already mentioned by us Mr Tarkunde has accepted that the Tribunal was justified in not deducting the Provision made for taxation and development rebate
The result is that the average gross profits of the appellant being about Rs 400000000 as held by the Tribunal is correct
In the fixation of wages and dearness allowance the legal position is well established that it has to be done on an industry cumregion basis having due regard to the financial capacity of the unit under consideration vide Express Newspapers Private Ltd and Another vs The Union of India and others1 Greaves Cotton and Co and others vs Their Workmen 2  and Bengal Chemical  Pharmaceutical Works Ltd vs Its Workmen3
It has been further stated in Greaves Cotton add Co and others vs Their Workmen 2  as follows  The principle therefore which emerges from these two decisions is that in applying the industry cum region formula for fixing wage scales the Tribunal should lay stress on the industry part of the formula if there are a large number of concerns in the same region carrying on the same industry in such a case in order that production cost may not be unequal and there may be equal competition wages should generally be fixed on the basis of the comparable industries namely industries of the same kind
But where the number of industries of the same kind in a particular region is small it is the region part of the industry cum region formula which assumes importance  1 2  3  587 It has been further emphasized in Ahmedabad Millowners  Association etc
vs The Textile Labour Association1 that industrial adjudication should always take into account when revising the wage structure and granting dearness allowance the problem of the additional burden to be imposed on the employer and ascertain whether the employer can reasonably be called upon to bear such burden
The principles to be borne in mind have been stated in the said decision as follows   It is a long range plan and so in dealing with this problem the financial position of the employer must be carefully examined
What has been the progress of the industry in question what are the prospects of the industry in future has the industry been making profits and if yes what is the extent of profits what is the nature of demand which the industry expects to secure what would be the extent of the burden and its gradual increase which the employer may have to face  These and similar other considerations have to be carefully weighed before a proper wage structure can be reasonably constructed by industrial adjudication 
As pointed out in Greaves Cotton and Co and others vs Their Workmen 2  one of the principles to be adopted in fixing wages and dearness allowance is that the Tribunal should take into account the wage scale and dearness allowance prevailing in  comparable concerns carrying on the same industry in the region
 The factors which have to be taken into account for ascertaining comparable concerns have also been laid down by this Court
In Workmen of Balmer Lawrie and Co vs Balmer Lawrie and those principles have been stated as follows Besides it is necessary to emphasise that in dealing with the comparable character of industrial undertakings industrial adjudication does not usually rely on oral evidence alone
This question is considered in the light of material fact and circumstances which are generally proved by documentary evidence
What is the total capital invested by the concern what is the extent of its business what is the order of the profits made by the concern what are the dividends paid how many employees are employed by the concern what is its standing in the industry to which it belongs these and other matters have to be examined by industrial adjudication in determining the question as to whether one concern is com parable with another in the matter of fixing wages
Now 1  2  3  588 it is obvious that these questions cannot be decided merely on the interested testimony either of the workmen or of the employer and his witnesses  In Workmen of New Egerton Woollen Mills vs New Egerton Woollen Mills and others1  the above principles have again been reiterated
From the decisions referred to above it follows that two principal factors which must weigh while fixing or revising wage scales and grades are 1 How the wages prevailing in the establishment in question compare with those given to the workmen of similar grade and scale by similar establishments in the same industry or in their absence in similar establishments in other industries in the region and 2 What wage scales the establishment in question can pay without any undue strain on its financial resources
The same principles substantially apply when fixing or revising the dearness allowance
The question is whether the Tribunal has adopted the above principles when revising the wage scales and dearness allowance in the case of the appellant
The Unions had relied on as many as twenty one concerns located in the region of Greater Bombay and belonging to the same pharmaceutical units of industry as units comparable with the appellant
The appellant opposed its being compared with those concern on the ground that the units relied on by the Unions were companies haying foreign collaborations or connections and as such possessing several advantages
The appellant in turn relied on several concerns in the region as comparable units
Before we refer to the concerns relied on by the Unions and the appellant as comparable concerns it is necessary to deal with an objection raised by Mr Tarkunde that no foreign unit doing business in India or no unit in India doing business in collaboration with a foreign concern can ever be considered for purposes of comparison
According to the appellant such concerns have distinct advantages of international research facilities reputation in business which enables such concerns to market their products more easily and thus enable them to pay higher wages to their employees
In view of the special technical facilities that may be available to them their output will be far higher though the number of employees will be much less and as such they will be able to pay to their lesser number of employees higher wages
In this connection Mr Tarkunde relied on certain awards of the Industrial Tribunal 11969 589 wherein it is held that the comp es having foreign collaboration though in the same region and in the same industry cannot be considered for the purposes of comparison with purely local On the other hand Mr Sule has opposed the above position and urged that the question as to who is the employers is absolutely immaterial so long as the tests for the purposes of comparability as laid down by this Court are satisfied and the capacity to bear the financial burden is established
We will deal with aspects in the first instance
It must be stated at the outset that the Unions placed reliance on certain information contained in the prospectus of the Company and certain statements contained in the book Indian Pharmaceutical Industry published in 1963 and 1969 to show that the appellant concern is also one which has foreign collaboration and as such it is to be ranked as a concern with foreign attachment
has recorded a finding in favour of the appellant that it is not a unit having foreign collaboration
Therefore this finding is III favour of the appellant
The question that now arises for consideration is whether in law there is any objection or prohibition in an industrial tribunal when dealing with comparable units in a region from taking into account concerns having foreign collaboration
It is no doubt true that some of the concerns relied on by the Unions are concerns working in collaboration with foreign firms
In Chemical Industries and Pharmaceutical Laboratories Limited Cipla Bombay vs Their Workmen1 it was held by the Industrial Tribunal that the Cipla cannot be compared to Glaxo Laboratories Raptakos Brett and other pharmaceutical concerns which are either subsidiaries of foreign concerns or are closely linked with them
It was further held that if any comparis on could be madein can only be with concerns like Kemp  Company
Sandu Pharmaceutical Fair Deal Corporation Edison Continental Laboratories Bengal Chemicals and such other indigenous concerns
Again in Alembic Chemical Works Ltd Baroda vs Its Workmen 2  the Tribunal held that Alembic cannot be compared to concerns like the Glaxo Laboratories and others who have associations in different degrees and forms with certain foreign concern of international repute
On this reasoning the Tribunal relied more on the scales wages prevailing in concerns like the Jhandu Pharmaceutical Cipla
Kemp  Co and such similar concerns although it held that 2 1958 ICR Bombay 1305
1 1957 ICR Bombay 1206
590 Alembic is a much bigger concern than the said units
It must be stated that in both these awards concerns with foreign collaboration have been eliminated from consideration on the ground that they cannot be regarded as comparable concerns and to that extent they support Mr Tarkunde s contention
In Reference IT No 223 of 1959 which related to the appellant Company the workmen placed reliance on Indian units of foreign concerns for being treated as comparable units
The appellant however pointed out that those units which have international fame and repute in world market were in a position to sell their products more easily and profitably and hence they cannot be treated as comparable units
The Tribunal no doubt accepted the contention of the appellant that the Unions had selected some of the bigger concerns for comparison and held that it would be more appropriate if the appellant is placed somewhere in between the bigger and smaller concerns
In this view the Tribunal took to the financial capacity of the appellant
Again in Reference IT No 402 of 1963 relating to the appellant wherein the dearness allowance was revised the appellant had contended that it should not be compared with the units like Ciba Dumex Glaxo Sandoz and the like
The Tribunal held that the appellant cannot be compared with international pharmaceutical units having branches in Bombay or with foreign concerns like Glaxo Ciba Sandoz etc which though incorporated in India are subsidiaries of foreign companies having all the advantages of connection with respect of home companies in Europe and America
The Tribunal referred to the award in Reference IT No 223 of 1959 and held that a fair cross section of the industry has to be taken into account for fixing a scale of dearness allowance which will be within the financial capacity of the appellant
But how ever the Tribunal held that the appellant is a firm of good reputeand standing and that it has very fair prospects
Though in Reference IT No 223 of 1959 the Tribunal did not specifically eliminate from consideration units having foreign collaboration as such nevertheless in Reference IT No 402 of 1963 the Tri bunal has held that the appellant cannot be compared with international pharmaceutical companies having branches in Bombay or with concerns though incorporated in India are subsidiaries of foreign companies
From what is stated above it is no doubt true that in the three awards one of which specifically relates to the appellant concerns having foreign collaboration have been eliminated for purposes of comparison
But no legal principle on the basis of which such a decision has been arrived at has been stated in any of these awards
591 In our opinion so long and to the extent that concerns having foreign collaboration are doing business in India and in a particular concerned region we do not see any reason why they should not be taken into account for purposes of being treated as comparable units provided the tests for such purposes as laid down by this Court are satisfied
No doubt some of those concerns may be having an advantage in various matters
But merely because that they possess such advantage in the field of business is not a circum stance for eliminating such concerns for purposes of comparability
The object of industrial adjudication is as far as possible to secure uniformity of service conditions amongst the industrial units in the same region
If a concern having foreign collaboration properly satisfies the tests of comparability it would be improper to regard  such unit as uncomparable merely on the ground that it is a con cern with foreign collaboration or interest and that the unit with which it is sought to be compared is entirely of Indian origin and resources
The object of Industrial
Law is to improve the service conditions of industrial labour so as to provide for them the ordinary amenities of life with a view to bring about industrial peace which would in turn accelerate productivity of the country resulting in its prosperity
The prosperity of the country in its turn will help to improve the condition of labour
The principles regarding fixation of wage scales and dearness allowance have been laid down in several decisions by this Court and they apply equally to all industries irrespective of the character of the employer
The worker is interested in his pay packet and given reasonable wages he can be expected to be a satisfied worker
There is no justification from the stand point of view of the employees for fixing different wage scales merely because of the fact that some workmen are in the employ of purely local concerns while some others are in the employ of units though in the same region working in collaboration with foreign concerns
As the paramount consideration is the interest of the worker the character of the employer is irrelevant provided  the latter s financial capacity to bear the burden is established
In the ultimate analysis the character of the employer or the destination of profits has no relevance in the fixation of wages and dearness allowance
We are fortified in the above view by The decision of the Constitution Bench of this Court in Hindustan Antibiotics Ltd vs The Workmen and others1
In that case on behalf of the appellant it was urged that as it was a government company in the public sector the principles governing the fixation of wages applicable to companies in the private sector do not have any relevance
On 119671SCR652 592 the other hand on behalf of the workmen it was contended that in fixing the wage structure including dearness allowance the question who is the employer is irrelevant and that only the needs of the employee are of paramount importance
The contention on behalf of the workmen was accepted by this Court and it was held that the same principles that have been laid down by the industrial adjudication and the courts regarding the fixation of wage scales and dearness allowance in respect of companies in the private sector apply with equal force to companies in the public sector also
It was further held that in the application of the industry cum region principle to be adopted to distinction can be made between one unit and another in the same industry in the fixation of wage scale provided the test of financial capacity is satisfied
It was further held that by and large the acceptance of the principle of industry cum region will be more conducive to industrial relations and that the same principles evolved by the industrial adjudication in regard to private sector undertakings will govern those in the public sector undertakings having a distinct corporate existence
Though the decision cited above had to deal with a claim for differentiation being made on behalf of a company in the public sector and which claim was rejected in our opinion the basic principle underlying the said decision will apply even with respect to the question whether the units having collaboration with foreign concerns can be taken into account for purposes of comparison In our opinion the above decision warrants the conclusion that such units having foreign collaboration or foreign companies doing business in India can be taken into account for purposes of being considered whether they are comparable units
Of course the test laid down by this Court for treating one unit as a comparable one will have to be satisfied and once that test is fulfilled there can be no distinction made between such units and purely local units
Therefore in our view the Tribunal in the case before us was perfectly justified in taking into account for purposes of comparison units having collaboration with foreign concerns and foreign units doing business in India in the same region and being in the same industry
It follows therefore that the principles laid down to the contrary in the awards relied on by Mr Tarkunde are erroneous
Coming to the units relied on by the parties as comparable units
as mentioned earlier the Unions relied on as many as 21 concerns as comparable with the appellant
No doubt some of the units relied on by them were units having collaboration with foreign concerns
The appellant also in turn filed statement exhibit C 26
referring to six companies which could be treated as comparable concerns 593 The Tribunat rejected most of the units relied on by the Unions on the ground that the information furnished regarding such units
were not adequate and complete regarding various factors necessary to constitute a comparable unit
We have also gone through the statements filed by the Unions
In exhibit DU 2 one of the Unions furnished information regarding the business performance of about nine concerns till the year 1964 65
Similarly in exhibit DU 3 another Union had given the average performance of nearly ton units for the years 1962 63 to 1964 65
As it would be more desirable to consider the financial capacity of the appellant in the light of the trading results disclosed in the balance sheets and profit and loss accounts from the years 1965 66 to 1969 70 it must he considered that the information furnished in Exs
DU 2 and DU 3 cannot he considered to be upto date and helpful
The Unions also did not make any further attempt to supplement the informa tion contained in these two exhibits by furnishing information regarding the years subsequent to 1964 65
No doubt the Unions have furnished particulars regarding one unit Burroughs Welcome India Private Ltd which will be dealt with later
Therefore the rejection by the Tribunal of most of the units relied on by the Unions was justified
The appellant Company relied on six units mentioned in exhibit C 26
Those units are Cipla Chemo Phama Zandu Opil Sigma and Bengal Chemicals
But the Company did not furnish information regarding the business performance of these concerns for a period of years in the immediate past
But it will be noted that the four units referred to in exhibit C 26
namely Zandu Cipla Opil and Sigma had been considered by the Industrial Tribunal in its previous award Reference IT No 402 of 1963 when the scale of dearness allowance obtaining in the appellant Company was revised
On that occasion the Tribunal had held that it was only Cipla which came nearest to the appellant Company and even there the dearness allowance obtaining in Cipla cannot be taken for comparison
That means that these four units were left out of account and were not treated as units comparable with die appellant
No fresh materials were placed by the appellant regarding these four units after the decision of the Tribunal in Reference IT No 402 of 1963
Therefore the Tribunal in the present case was justified in rejecting the claim of the appellant that those four units are comparable concerns
The elimination of the four units
thus left for consideration only two concerns namely Chemo Phama and Bengal Chemicals
Even here the Unions had furnished statements Exs
DU 8 and DU 9 regarding these two units in Ex  DU 8 the business performance of Chemo Phama froth 1965 to 1969 was given and in exhibit DU 9 the business performance of Bengal Chemicals from 1965 to 1970 was given
The 594 Unions had also furnished exhibit DU 44 regarding the business performance of the appellant
A comparison of the statements contained in Exs
DU 8 and DU 9 with the material relating to the appellant in exhibit DU 44 regarding the paid up capital reserves and surplus sales net block net profits and gross profits it is quite clear that the business performance of Chemo Phama and Bengal Chemicals do not come anywhere nor that of the appellant
The appellant in all respects stands on a much higher footing
The average gross profits of the appellant work out to Rs 4011176
while the average gross profits of Chemo Phama works out to Rs 531511 and that of the Bengal Chemicals to Rs 1139553
Therefore it is clear that these two units also cannot be treated as concerns comparable with the appellant and hence the wage structure prevailing in those concerns cannot provide any useful guidance
We have already mentioned that the Tribunal has ultimately held that Ms Burroughs Wellcome India Private Limited is a concern comparable with that of the appellant
It is no doubt a foreign company in the sense that its entire capital is held by foreign company as shown in the statement exhibit C 11 filed by the appellant
But we have already rejected the contention that such a concern cannot be ruled out of consideration for purpose of comparability
A very severe attack has been levelled by Mr Tarkunde in the Tribunal s treating Ms Burroughs Wellcome Company as a comparable unit
According to the learned counsel if the various factors relevant for the purpose of comparison are considered it will be clear that the appellant cannot stand any comparison with this unit
Mr Tarkunde further pointed out that instead of taking only one unit for purposes of comparison the Tribunal should have taken fair cross section of the industry in order to find out where exactly the appellant can be fitted in
It is no doubt true that a fair cross section of the industry should be taken into account
But in this case when all the other units have been held to be not comparable with the appellant this criticism levelled against the approach made by the Tribunal cannot be accepted
Regarding Burroughs Wellcome Company the Unions had sub mitted a statement exhibit DU 2A under a seal of confidential as it was a private limited company
A comparison of the information contained in the said statement exhibit DU 2A regarding the paid up capital  reserves and surplus sales depreciation development rebate provision for taxation net profits gross profits net block and dividend declared for the years 1967 to 1970 with the corresponding items in exhibit DU 4A with respect to the appellant shows that both the units are substantially on a par
Normally the 595 statements in exhibit DU 2A could have been extracted in this judgment but for the fact that Burroughs Wellcome Company being a private limited company and the statements having been furnished in a sealed cover they could not be made public
The paid up capital
is identical in both the concerns
The average sales of Burroughs Wellcome Company and those of the appellant are substantially the same
The difference between the net profits of the two is significantly small
The gross profits of the two units are also close to each other
No doubt there are some small differences between the two in these items but they are of no significance
The various factors which have to be taken into account for he purpose of a unit being treated as a comparable one as laid down by this Court have already been referred to
If so all those factors taken into account clearly show that Burroughs Wellcome Company is a unit comparable with the appellant
No doubt the appellant has relied on the ratio of employees to sales as well as to debt equity ration and the percentage of profit to sales in respect of the appellant and the Burroughs Wellcome Company
exhibit C 22 contains the ratio of employees to sales in 1968 69
Though there are certain other units referred to therein we will only advert to the particulars regarding the appellant and the Burroughs Wellcome Company which are as follows Ration of Employee to Sales No of Per Name of the Company Year SalesEmployees employee sale Rs Rs Unichem 68 6932994456 752 43875 Burroughs
69 25000000 425 58823 A reference to exhibit C 22 will show that the sales of the appellant is higher than that of Burroughs Welcome Co No doubt the ratio per employee is slightly less in the case of the appellant
It is also seen that the appellant employs nearly 752 workmen whereas Burroughs Wellcome Co employs only 425 workmen
In exhibit C 18 particulars regarding Debt Equity Ratio have been given
That statement contains particulars regarding the various firms including the appellant
In 1969 the capital of the appellant was Rs 10186 lakhs
It had borrowed Rs 9589 lakhs and the percentage on borrowed funds to capital works out to 941 
It is no doubt true that there is no borrowed capital in Burroughs Wellcome Co In exhibit C 18 particulars regarding nine Units have been given and it is seen that except two units all the other seven units including the appellant have borrowed
In fact it is interesting to note that Glaxo which has a capital of Rs 119681 lakhs had also borrowed Rs 26 80 lakhs
Similarly 596 Chemo Phama which had a capital of only Rs 3205 lakhs had borrowed Rs 3708 lakhs and the percentage works out to Rs 1157
We are referring to these aspects because it was stressed by Mr Tarkunde that the Debt Equity Ratio in the appellant is very high and that it has to pay a large amount by way of interest on borrowed funds which is not the case with Burroughs Wellcome Company
But the statements contained in exhibit C 18 themselves clearly show that borrowing for the purpose of business seems to be a usual pattern followed by the companies in the region
exhibit C 15 is a statement relating to percentage of profit to sales for the years 1965 66 to 1969 70
No doubt the figures given therein show that the percentage of profits has been fluctuating
but in our opinion the particulars contained in the above exhibits
relied on by the appellant do not affect the findings of the Tribunal that Burroughs Wellcome Company is a unit comparable with the appellant
Another criticism that has been levelled by Mr Tarkunde is that the Tribunal has not taken into account the prospects of the future business of the appellant
In this connection the appellant relied on the coming into force with effect from January 1 1971 of  the Drugs Price Control Order 1970
According to Mr Tarkunde whatever may have been the financial
position of the appellant in the past its future business is bound to suffer in view of this price control order
He referred us to the decision in Williamsons India Private Ltd vs Its Workinen1 of this Court wherein it has been held amongst the various factors which have to be taken into account for the purpose of fixation of wage scales and dearness allowance the prospect of future business is a very relevant circumstance
This factor according to the appellant has not been taken into account by the Tribunal
We have earlier referred to the decisions of this Court regarding the principles governing the fixation of wages and dearness allowance
It is no doubt a long range plan and the Prospects of future business amongst other factors have also to be taken into account
The case of the appellant is that in 1963 there has been a price freeze and that has affected its business and therefore the Drugs Price Control Order 1970 will affect its future business
We have already extracted in the earlier part of the judement the trading results of the appellant from 1965 66 to 1969 70
If the price freeze which came into force in 1963 had any affect then it must have been reflected in the trading results of the appellant
The 1 597 trading results of the appellant during the years 1962 63 to 1964 65 are as follows  Particulars1962 63 1963 64 1964 65 Paid up capital 4491000 44992504499500 Reserves and Surplus 476569 1010753 1505353 Sales 10241405 1566588317388705 Net Block 3907400 4371113 4345467 Provision for Taxation 934000 1065000 1515000 Depreciation297243379256390878 Development rebate 33686 100617 22329 Net Profits 442881 703567 877271 A glance of the above statement clearly shows that though the paid up capital remains the same there has been a steady rise in the reserve and surplus sales and net profits
Similarly the net block has also an increase
There has been no set back in the sales
On the other hand there has beena steady rise in the sales
No doubt for the year 1969 70 the profits did go down but the drop is comparably small and the appellant has not been able to satisfy
us that it is due to the price freeze
Then the question is regarding the impact of the Drugs Price Control Order 1970 which has come into effect from January 11971
In this connection it is necessary to refer to the speech made bythe Chairman of the Board of Directors of the appellant Companyat the Annual General Meeting held on January 9 1971
At thisstage it may be mentioned that the Accounting year of the appellant Company is from October 1 to September 30 of the succeeding year
On January 9 1971 the Chairman was giving a review of the working of the Company for the year ending September 30 1970
He had clearly stated that the impact of the Drugs Price Control Order 1970 which had come into force only recently will be felt by the Company only after the year 1970 71
The appeal was heard by us from January 3 1972 and concluded only on January 10 1972
As the Company in the previous years had been having its Annual General Meetings in early January of each year we suggested to the counsel for the appellant that as the approximate trading results for the year commencing from October 1 1970 to September 30 1971 would have been available by then they may be furnished so that it may be possible to find out the impact of the Drugs Price Control Order on the trading results of the appellant
But it was represented that the figures are not available
It is not necessary for us to cornment except to state that going by the fact that on former occasions the figure had been ready by the first week of January to enable the Annual General Meeting of the Company to be held it would not have been difficult for the appellant to have furnished at least 1031 Sup
CI72 598 the approximate figures if really the trading results had shown a decline
The appellant has missed an opportunity that was provided to it to establish that the Drugs Price Control Order has adversely affected its business
Under those circumstances it is not possible for us to disagree with the view of the Tribunal that the impact of the Drugs Price Control Order will not be such as to affect materially the business prospects of the appellant Company
We may state that if the Drugs Price Control Order mate rially affects the prosperity of the appellant s trade it would be open to it to raise a dispute for the reduction in the wage structure and in case they are able to show that in view of the Drugs Price Control Order their financial position has been weakened to such an extent that they cannot bear the burden of wage structure fixed by the present award the matter may have to be examined on its merits
The question of fixation of wage scales need not detain us very long
We have already extracted the wage scales prevailing in the appellant company as well as the categories of workmen when the reference was made
We have also referred to the fixation of wage scales by the Tribunal on a comparison with the wage scale obtaining in Burroughs Wellcome Company
The wage structure
as well as the grades that were prevalent in Burroughs Wellcome Co in pursuance of the settlement dated June 13 1966 regarding the operatives and clerical and subordinate staff have been incorporated by the Tribunal in its Award
We do not think it necessary to reproduce the same
A comparison of the wage scales in Burrough Wellcome Company and the wage scales fixed by the Tribunal in the Award for the Company will show that the Tribunal has only made some slight variation in view of the fact that it accepted the report of the assessor for the continuance of the existing grades in the Company
As some of those grades were not existing in BurToughs Wellcome Company the Tribunal bad to make some slight changes
Wherever it was possible the wage structure in Burroughs Wellcome Co has been retained but the maximum has been raised a little and some slight changes have also been made in the incremental stage
Once Burrough Wellcome Company is treated as a comparable unit we are satisfied that the wage scales awarded by the Tribunal cannot be considered to be unjustified
The Tribunal s finding regarding the financial capacity of the appellant has already been referred to and we accept the same
it was however pointed out by Mr Tarkunde that in consi dering the comparability of a unit strength of the labour force has also to be given due importance
Mr Tarkunde pointed out that 599 while the appellant employs 752 workmen there are only 436 in Burroughs Wellcome Co as is seen from the Statement exhibit C 22
No doubt to this extent the two units differ but when one bears in mind the business performance of both the unitsthere is not much of a substantial difference
It may be that because of the fact that Burroughs Wellcome Co adopts more modem methods of production it was employing a smaller complement of workers
Having due regard to all the other tests that have been satisfied this difference in the strength of labour force alone in our opinion cannot be given undue importance
It is pertinent to note that this Court in Workmen of New Egerton Woollen Mills vs New Egerton Woollen Mills and others1 did not disagree with the view of the Industrial Tribunal which had treated the respondent therein and another unit as a comparable unit notwithstanding the that the respondent was employing at the material time about 3000 workmen whereas the unit which was treated as a comparable unit was having the labour force of only about 1000 men in view of the fact that all other requirements for comparability Were satisfied
In fact in the case before us the Tribunal has adverted to this difference of labour force of the appellant and Burroughs Wellcome Company but nevertheless it held that that by itself is not sufficient to eliminate Burroughs Wellcome Company as a comparable unit
We agree with this approach made by the Tribunal
An objection was taken on the basis of section 104 of the that the Tribunal has permitted the Unions to revise their demand regarding classification and grades of workmen and that the Tribunal has further committed an error in upholding the grades of Stenographers Assistants and Store keepers and merging them with that of the Senior Clerks
We are not inclined to accept this contention advanced on behalf of the appellant
We have already referred to the fact that as the question of classification and fixing grades were matters cf a technical nature at the joint request of both the parties the Tribunal appointed Sri Gadkari as an assessor
It was really in view of the stand taken by both the parties before the assessor and the Tribunal after the report was submitted by the assessor that the Tribunal has accepted the report that the existing grades should continue
But as the workmen had to be fitted in the appropriate grades the Tribunal was justified in fitting in the categories the workmen and their grades as well as their scales of wages
The above contention based upon section 104 of the  at the most can relate if at all
only to the operatives
The report of Sri Gadkari has already been referred to
He had suggested the  retention of the existing categories
The workmen have necessarily to be classified for the purpose of being put in particular categories 11969 2 LLJ782
600 and the wages also have to be suitably fixed depending upon the category in which they are so fitted
Having due regard to the nature of the reference classification though jobwise and the fixing of wages of pay and fitting the workmen in suitable categories were all matters incidental and as such the Tribunal has acted within its jurisdiction in classifying the workmen and fixing the scales of pay after fitting them in particular categories
In the view above expressed we do not think it necessary to refer to the decisions referred either by Mr Tarkunde learned counsel for the appellant or by Mrs Urmila Kapoor on behalf of the respondent No 2 as to when exactly the matter can be considered to be incidental to the question referred for adjudication
Before we take up the question of dearness allowance one other point that requires to be adverted to is the objection taken on behalf of the appellant regarding the raising in the gratuity scheme the ceiling limit from 15 months to 17 21 months  basic wages
The Tribunal has adopted the pattern obtaining in Burroughs Wellcome Company
We do not see any question of principle involved in this matter and therefore we find no merit in the objection raised by the Company
The pattern of dearness allowance that was in force in the appellant Company at the time of the reference has been indicated already
We have also referred to the scale of dearness allowance fixed by the Tribunal
There were different systems of dearness allowance for the operatives and the clerical and subordinate staff
That such a different system of dearness allowance for the employees working under the same employer is not warranted is clear from the decisions of this Court in Greaves Cotton  Co and others vs Their Workmen1 and Bengal Chemical  Pharmaceutical Works Ltd vs Its Workmen2
Therefore the Tribunal was justified in devising a uniform scale of dearness allowance applicable to all the employees of the appellant
The Unions required a common scheme of dearness allowance of slab system to be introduced for all employees
The appellant resisted the claim on the ground that there was already a scheme of dearness allowance existing in the Company and that there is no justification for revising the same
But nevertheless the Tribunal has adopted by and large the scheme of dearness allowance which was in vogue in Burroughs Wellcome Co Normally once Burroughs Wellcome Co is treated as a unit comparable with the appellant the Tribunal must be considered prima facie to be justified in introducing the pattern obtaining in that unit
However it is pointed out on behalf of the appellant that the slab system of dearness allowance does not obtain in any of the pharmaceutical industries in the region
1  2  601 The contention that because there was a system of dearness allowance in existence in the Company and therefore there was no justification for revising the same cannot be accepted
A similar contention raised in Remington Rand of India vs Its Workmen1 was rejected by this Court
In that
case there was a system of dearness allowance providing for payment of not only a rate of percentage on the basic salary but also a variation in the percentage on the rise or fall of the cost of living index
The workmen demanded revision of the scale of dearness allowance on the ground that the cost of living index had increased
The claim was resisted by the Company on the ground that the scheme of dearness allowance then existing in the Company itself provided for an increase in the cost of living index and therefore no revision is required
This contention was not accepted by this Court
It was held that a claim made by the Workmen if otherwise justified cannot be rejected on the sole ground that a provision is already made in an existing scheme of dearness allowance for adjustment depending upon an increase in the cost of living index
This Court further held that if it is established that the cost of living shows a tendency to rise very high the workmen would be entitled to claim and there may be a change in the rate of dearness allowance originally fixed so as to provide for more neutralisation
It was further held that a claim made by the workmen win have to be properly considered and adjudicated upon by the Tribunal
In fact in that case it is seen that there was only a 50 point rise in the cost of living index and nevertheless the revision of the scale of dearness allowance by the Tribunal was upheld
We may also refer to the decision of this Court in Workmen of Balmer Lawrie and Co vs Balmer Lawrie and Co2 wherein it has been held as follows  If the paying capacity of the employer increases or the cost of living shows an upward trend or there are other anomalies mistakes or errors  in the award fixing wage structure or there has been a rise in the wage structure in comparable industries in the region industrial employees would be justified in making a claim for the reexamination of the wage structure and if such claim is referred for adjudication the Adjudicator would not normally be justified in rejecting it solely on the ground that enough time has not passed after the making of the award or that material change in relevant circumstances had not been proved
It is of course not possible to lay down any hard and fast rule in the matter
The question as to revision must be examined on the merits in each 1 2  602 individual case that is brought before an adjudicator for his adjudication
 On the date when the settlement was entered into between the appellant and its workmen on April 20 1966 the cost of living  index was 630
From exhibit C 1 it is seen that in August 1969 the cost of living index had gone up to 7 90 and from exhibit DU IO dated December 8 1970 it is seen that when the second settlement was entered into between Burroughs Welcome Co and its workmen the cost of living index had gone upto 8001
It is also seen that at the time of the Award it had gone up further to about 850 points
Therefore from the date of the settlement in 1966 the cost of living index had very rapidly gone up by 220 points
At the time when the demand for revision of wage scales and dearness allowance wag made by the Unions and when the reference order was made by the Government the cost of living index had gone up very high
That clearly shows that the workmen had made out a case for revision of wage scales and dearness allowance
We have earlier referred to the scheme of dearness allowance fixed by the Tribunal in the Award
The scheme provides for payment of a particular percentage on the basic salary and it also provides for variation on 10 points
But the dearness allowance has been fixed on the Bombay Working Class Cost of Living Index of 521 530
Though more or less the same pattern of dearness allowance was obtaining in Burroughs Welcome Co  the dearness allowance in the latter was fixed at the Bombay Working Class Cost of Living Index of 491 500
The scale of dearness allowance as demanded by the Unions was on the basis of the cost of living index 401 410
It was accepted by the appellant that the scheme obtaining in Burroughs Welcome Company is more advantageous from the financial point of view than the scheme of dearness allowance demanded by the Unions
In fact the Tribunal itself has made a further concession in favour of the appellant by adopting the cost of living index of 521 530 instead of 491 500 as was obtaining in Burroughs Welcome Co The Tribunal had made this change in the cost of living index in view of the fact that in the appellant Company there was an Incentive Wages Scheme in and by which operatives were getting on an average about Rs 28 per month
Therefore the financial burden cast on the appellant by the dearness allowance scheme fixed by the Tribunal is such that the appellant can bear the burden
in order to show that in the Bombay region the pharmaceutical units were adopting the slab system of dearness allowance the Unions had filed a chart exhibit DU 1
It is evident from exhibit DU 1 that out of 19 pharmaceutical units referred to therein at least 1 1 of them adopt the slab system of dearness allowance which
has been 603 introduced in the case of the appellant in the Award
No doubt it is pointed out by Mr Tarkunde that in the statement filed bay the appellant exhibit C 25 it will be
seen that none of the Indian owned units have adopted the slab system
But whether those units have adopted or not we have already indicated that no distinction can be made between a purely local unit and a foreign unit doing business in India or an Indian unit doing business in collaboration with foreign concern
When once such units can be taken into account as comparable units the pattern of dearness allowance obtaining therein can very well be considered to ascertain the system adopted by the industry as that will show the trend in the region
As pointed out above at least 11 units referred to in exhibit DU 1 have adopted the
system now introduced in the case of  the appellant by the Tribunal
Under those circumstances when such system is prevailing in the industry in the same region it cannot be held that the Tribunal has committed any error in introducing a similar pattern in the case of the appellant
The slab system has been approved by this Court as will be seen by the decisions in Greaves Cotton and Co and others vs Their Workmen2 and Bengal Chemical and Pharmaceutical Works Ltd vs Its Workmen 2 
Even in Bombay that such a pattern of dearness allowance as the one introduced in the case of the appellant is existing is seen by the decisions of this Court in Greaves Cotton and Co and others vs Their Workmen2 and Kamani Metals  Alloys Ltd vs Their Workmen 3
No doubt the industries therein were not pharmaceutical units
But that such a system exists in Bombay region is clear from the above decisions
Mr Tarkunde referred us to the Award of the Industrial Tri bunal in Reference IT No 411 of 1966 in Voltas Limited Bombay vs The Workmen Employed under them dated September 30 1969 wherein the adoption of slab system has not been approved
On the other hand Mrs Urmila Kapoor learned counsel for respondent No 2 has drawn our attention to a number of awards of the Industrial Tribunal rendered during the years 1965 to 1968 wherein the slab system of dearness allowance has been adopted in Bombay region
It is only necessary to refer to the award in the case of May and Baker Limited Bombay vs Its Workmen because that is a pharmaceutical unit
The award was given in or about June 1967 and it is seen that the dearness allowance on the pattern now given by the Tribunal in respect of the appellant has been adopted
We have already referred to the fact that in exhibit DU71 it is seen that as many as 11 pharmaceutical unit s in Bombay region have adopted the pattern of granting dearness allowance on the slab 1  3  2 3
604 system now incorporated in the present award
Though most of the units referred to therein could not be treated as units comparable with the appellant because of lack of full information regarding material factors yet those concerns can be taken into account inasmuch as the system Obtaining in those concerns will show that the slab system is not something new to the pharmaceutical units
We have already referred to the award in May and Baker Limited Bombay vs Its Workmen
These facts clearly show that the scheme of dearness allowance provided in the award before us in respect of the appellant is not anything new
On the other hand the Tribunal has only adopted the system prevailing in the region in respect of pharmaceutical units
So far as the financial burden is concerned we have already referred to the findings recorded by the Tribunal
Even on the basis that the Tribunal was not justified in proceeding on the assumption that 52 chemists are not covered by the reference in our opinion the additional burden that will be cast on the appellant can be easily borne by if
Therefore we see no error in the scheme of dearness allowance introduced in the case of the appellant by the Tribunal
The only other point that requires to be considered is in respect of the direction given by the Tribunal regarding the Incentive Bonus scheme in respect of which the appellant had given notice of change under section 9A of the industrial Disputes Act 1947
We have already referred to the nature of the scheme that originally existed and the modification sought to be made by the appellant
We have also pointed out that the Tribunal has not accepted most of the recommendations made by Sri Tulpule who was appointed as an a ssessor on the joint application of both the parties
The Tribunal has stated that it is desirable that a scheme is worked out if possible by consent of parties for the purpose of protecting the interest of the workmen at the increased base performance index
According to Mr Tarkunde the Tribunal itself should have gone into the matter and evolved a scheme
No doubt it would have been desirable if the Tribunal had actually evolved a scheme
But the Tribunal has stated that the necessary material for that purpose has not been made available and as such it has not been possible to devise a scheme calculated to afford protection to the incentive earning of a workman at the raised base performance index
In fact we also suggested to the counsel that the parties may consider the matter and submit a scheme for that purpose
But it was represented to us on February 9 1972 by Mrs Urmila Kapoor learned counsel for respondent No 2 that it has not been possible for the parties to arrive at an agreement in respect of that matter at present
Therefore there is nothing further that could 605 be done by this Court in this regard and the result is that the observations made by the Tribunal in this regard will have full effect
In the result all the conventions of the appellant are rejected and the Award of the Industrial Tribunal in respect of the matters in controversy in the appeals are confirmed
All the appeals are dismissed
In Civil Appeal No 1091 of 1971 the appellant will pay the costs of respondents Nos 1 and 2
In the other appeals parties will near their own costs
The appellant will have three months  time from today for payment of the amounts due under the award


Summary:
The appellant carried on the business of manufacturing and selling pharmaceutical products in Greater Bombay
In disputes arising bet the appellant and the respondents the Industrial Tribunal had to deal with questions relating to dearness allowance classification of grades and fixation of wages and the incentive bonus scheme as modified by the company
In appeal against the award of the Tribunal HELD  i The decisions of this Court in Gramophone Company Ltd vs its Workmen and The Indian Link Chain Manufacturers Ltd vs Their Workmen show that the Tribunal was justified in computing gross profits without deducting taxation depreciation and development rebate
The latter decision is directly in point to the effect that provision for depre ciation cannot be deducted
582E 585B C Gramophone Company Ltd vs Its Workmen and The Indian Link Chain Manufacturers Ltd vs Their Workmen  applied
Ahmedabad Millowners  Association Etc
vs The Textile Labour Association   referred to
iiSo long and to the extent that concerns having foreign collaboration are doing business in India and in a particular concerned region there is no reason why they should not be taken into account for purposes of being teated as comparable units provided that the tests for such purposes as laid down by this Court are satisfied
The object of industrial adjudication is to secure as far as possible uniformity of service conditions among industrial units in the same region
if a concern having foreign collaboration properly satisfies the tests of comparability it would be improper to regard such unit as uncomparable merely on the ground that it is a concern with foreign collaboration or interest and that the unit with which it is sought to be compared is entirely of Indian origin and resources
591A C Chemical Industries and Pharmaceutical Laboratories Limited Cipla Bombay vs Their Workmen 1957 ICR Bombay 1206 and Alembic Chemical Works Ltd Baroda vs Its Workmen   Hindustan Antibiotics Ltd vs The Workmen and Ors   relied on
iiiOn the materials before it the Tribunal was justified in treating MS Burroughk Wellcome  Co as a unit comparable with the appellant
568 The fact that Burroughs Wellcome employed a lesser labour force did not deserve much importance because the business performance of the two companies was equal
Once Burroughs Wellcome Co was treated as a comparable unit the wage scales awarded by the Tribunal could not be considered to be unjustified
598G 599A D Workmen of New Egerton Woollen Mills vs New Egerton Woollen Mills and Ors  applied
ivOn the facts of the case it was not possible to disagree with the view of the Tribunal that the impact of the Drugs Price Control  Order will not be such as to affect materially the business prospects of the appellant company
If the Order materially affects the prosperity of the appellant s trade it would be open to it to raise a dispute for the reduction in the wage structure and in case they are able to show that in view of the Drugs Price Control Order their financial position has weakened to such an extent that they cannot bear the burden of the wage structure fixed by the present award the matter may have to be examined on its merits
598B C Williamsons India Private Ltd vs Its Workmen  referred to
vThe Tribunal had acted within its jurisdiction in classifying the workmen and fixing the scales of pay after fitting them in particular categories
The objection based on section 104 of the must be rejected
599E 600B viWhen the Tribunal raised in the gratuity scheme the ceiling limit from 15 months to 17 12 months according to the pattern obtaining in Buroughs Wellcome Company there was no question of principle involved justifying an objection by the appellant company
60OC D viiThere were different systems of dearness allowance for the operators and the clerical and subordinate staff in the appellant company
That such a different system of dearness allowance for employees working under the same employer is not warranted is clear from the decisions of this Court in the cases of Greaves Cotton  Co and Bengal Chemical  Pharmaceutical Works Ltd Therefore the Tribunal was justified in devising a uniform scale of dearness allowance applicable to all the employees of the appellant
600E F Greaves Cotton and Co and Ors
vs Their Workmen  and Bengal Chemical  Pharmaceutical Works Ltd vs Its Workmen   relied on
viiiFrom the date of the settlement in 1966 the cost of living index had very rapidly gone up by 220 points
At the time when the demand for revision of wages scales and dearness allowance was made by the Unions and when the reference order was made by the Government the cost of living index had gone up very high
That clearly showed that the workmen bad made out a case for revision of wage scales and dearness allowance
The contention of the appellant that because a system of dearness allowance already existed there should be no revision of the same could not be accepted
6O2C 601A Co  and Remington and of India vs Its Workmen  followed
569 ixWhen the slab system of dearness allowance was prevailing in the industry in the region the Tribunal committed no error in introducing a similar pattern in the case of the appellant
603C D Kamani Metals  Alloys Ltd vs Their Workmen   referred to
xIn regard to the incentive Bonus Scheme the Tribunal had stated that the necessary material for that purpose had not been made available and as such it had not been possible to devise a scheme calculated to afford protection to the incentive earning of a workman at the raised base performance index
This Court could do nothing furtherin this regard and the result would be that observations made by the Tribunal will have full effect
604G H