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I shall now consider Civil Appeal No.2300 of 1979 filed by the workmen | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The only contention of the workmen is that the Tribunal should have fixed the dearness allowance in communion with the cost of living index | Argument | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It is wrong in principle,it is said,to provide a fixed dearness allowance | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Reliance was placed on The Hindustan Times Ltd.,New Delhi v | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Their Workmen [1964] 1 SCR 234 1962 Indlaw SC 436,247 where it was observed by this Court that dearness allowance should not remain fixed at any figure but should be on a sliding scale in order to neutralise a portion of the increase in the cost of living | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Reference was also made to Bengal Chemical & Pharmaceutical Works Limited v | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Its Workmen | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
2 SCR 113 1968 Indlaw SC 183.Now,it is not a universal rule that the dearness allowance should in all cases be correlated with the cost of living index | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The Tribunal,in the present case,considered the matter and found it sufficient and in accord with justice that the wage scales should be restructured with suitable increments provided therein | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It noted that dearness allowance was being granted by the appellant at 10% of the salary subject to a minimum of Rs.50/-and house rent allowance at 30% of the basic salary | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Having regard to the not inconsiderable improvement in the level of the basic wage,it observed that there would be a consequent increase in the dearness allowance and house rent allowance | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
In view of the increase so secured,the Tribunal rejected the suggestion that a slab system should be introduced in the dearness allowance or that there should be any other modification of the principle on which dearness allowance was being presently granted | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It declared that the cumulative effect of an improved wage structure together with dearness allowance operating on a slab system would throw an impossible burden of about Rs.1 crore on the financial capacity of the appellant | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It was open to the Tribunal to adopt the position which it did | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
If the dearness allowance is linked with the cost of living index the whole award will have to be reopened and the entire basis on which it has been made will have to be reconsidered | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The award is a composite document in which the several elements of increased wage scales,larger increments,longer span of 20 years for earning increments,dearness allowance at 10% of the basic wage,besides several other benefits,have been integrated into a balanced arrangement in keeping with what the Tribunal has found to be the financial capacity of the appellant | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It is not possible to maintain one part of the award and supersede another | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Accordingly,the appeal filed by the workmen must fail | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
In the result,Civil Appeal No.2299 of 1979 is allowed in part insofar that the order dated 22nd December,1978 of the Industrial Tribunal,Maharashtra Bombay is quashed to the extent that it modifies the original award dated 20th December,1978,and the corrigendum made consequent thereto is also quashed | Ruling by Present Court | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Civil Appeal No.2300 of 1979 is dismissed | Ruling by Present Court | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
There is no order as to costs | Ruling by Present Court | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
CHINNAPPA REDDY,J.We have had the advantage of perusing the judgment prepared by our learned brother Pathak,J.we agree with him that Civil Appeal No.2300 of 1979 should be dismissed | Ruling by Present Court | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
We also agree with him that Civil Appeal No.2299 of 1979 should also be dismissed in so far as it relates to the award dated December 20,1978.However,we do not agree with our learned brother that Civil Appeal No.2299 of 1979 should be allowed in so far as it relates to the order dated December 22,1978 of the Industrial Tribunal which purports to correct the award dated December 20,1978.In our opinion Civil Appeal No.2299 of 1979 should be dismissed in its entirety | Ruling by Present Court | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
We do not propose to give our reasons to the extent we are in agreement with Pathak,J.and we propose to state our reasons for the disagreement only | Ruling by Present Court | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It is needless to recapitulate all the basic facts which have been set out in the judgment of Pathak,J.The Award of the Industrial Tribunal was made on December 20,1978.On December 22,1978 that is to say,two days after the Award was made and when everything must have been fresh to the minds of the Tribunal,the respective parties and their Advocates,the employees Union made an application under Rule 31 of the Industrial Disputes (Bombay) Rules,1957 seeking a correction of an error,which it was claimed,had crept into the Award | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The application was as follows: "In the above reference your honour was pleased to pass an award on 20th December,1978 | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
In the said award,Your Honour has observed,at the end of Para 22,'In view of the increase that is being allowed in the basic pay,I do not propose to revise the existing scheme of Dearness Allowance'.Further,it appears that the Tribunal intended to grant the increase of Rs.150/-to each draughtsman and Rs.100/-to all other workmen in their basic pay | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The Union therefore prays the honourable Tribunal to clarify the position and correct the award accordingly | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
On this application,the Advocate for the employer company made the following endorsement: "Submitted to whatever this Hon'ble Tribunal desires to do | Argument | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Thereafter the Tribunal made an order on the same day in the following terms: "There can be no doubt that a flat increase of Rs.150/-to each of the employees in the category of Draftsmen and of Rs.100/-to each employee in the other categories has been granted under my award | Ruling by Lower Court | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
This order was made in the presence of Shri Manak Gagrat,Advocate for the Company and Shri N.P.Mehta,Advocate for the workmen | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The endorsement made on the application by the Advocate for the company does not indicate that the company had any objection to the award being corrected as sought by the employees union | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
On the other hand the endorsement reads as if there was tacit agreement on the part of the Company to the correction sought by the union | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The order dated December 22,1978 of the Tribunal also does not reveal that there was any opposition by the company to the application for correcting the award | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Even so we propose to examine whether the correction sought by the employees union was within the bounds of the authority of the Tribunal or whether it was in effect a fresh award | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The primary and basic question considered by the Industrial Tribunal,in making the award dated December 20,1978 was the question of revision of the wage-scales | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Implicit and intrinsically connected with the question of revision of the wage-scales were the questions of fitment of employees into the wage-scales and flat or ad-hoc increase of salaries of workmen wherever considered necessary | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It cannot possibly be doubted that an Industrial Tribunal deciding upon the wage-scales of the employees of an establishment would have full liberty to propose ad-hoc increase of salaries as part of the revision of wages | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Nor can it be doubted that fitment into the revised pay scales is certainly a part of the revision of pay scales | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
This in our opinion is elementary and fundamental to the jurisdiction of the Industrial Tribunal in revising wage-scales | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
In the present case the Industrial Tribunal on a consideration of the material placed before it came to the conclusion that the company was in an undoubted position to bear the additional financial burden | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
At the end of paragraph 15 of the Award,the Tribunal stated: "But there can be no doubt that the company can very well bear the additional burden | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The question is what should be the extent of such burden | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
At the end of paragraph 18 of the award the Tribunal said: A" mere reading of Exhibit U-15 will immediately dispel the misgivings about the future of the present company | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
For some years to come this is likely to be one of the few Consulting Engineers who will be securing major contracts | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Again in Paragraph 19 it was said: "I have no doubt that the present Company would be able to bear the additional burden for the years to come | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
This is further borne out from the trading results of the Company for the year 1968-69 to 1977.The profits have increased all along | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The copy of the letter dated July 23,1973,alongwith | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
the Annexures from the Company to the Director General,Posts & Telegraphs,Delhi (Ex.C-27) indicates the important projects the Company was handling in India and abroad,and the amount of foreign exchange earned and repatriated | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
I will; therefore,proceed on the ground that the present Company can bear the additional financial burden".Finally at the end of paragraph 21 | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
the Tribunal said : In view of this position,the Company can easily bear some burden that might fall as a result of the upward revision of the wage-scales | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The question is to what extent the relief should be given to the employees | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
After expressing himself in categoric terms about the capacity of the company to bear the additional financial burden,the Tribunal went on to say: "I only propose to modify the existing structure of the scales with flat increases in each category".The Tribunal then considered the question whether Draftsmen should get a higher flat increase and the question whether the existing scheme of Dearness Allowance should be revised | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The Tribunal then observed: "......the flat increase of Rs.150/-in the category of Draftsmen and Rs.100/-in the case of the other categories would be fair".Thereafter various other matters were considered and finally the Tribunal revised the wage scales in the manner already mentioned by my brother Pathak,J.The question of "Fitment" was then considered in the following manner: " Fitment:- If as on 1st January,1976,an employee is drawing a salary less than the beginning of the respective grade,he should be first stepped up to the beginning of the grade | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
If the pay of an employee does not coincide with any step in the revised pay scale,and falls between two steps in the reclassified pay scales,the basic pay of that employee shall be fixed at the step higher in the revised scale | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
After fixing the salary of the employees in the scales as above,the employees should be given increments in the new scales as noted below:- (i) Employees who have completed 5 years or more as on 1st January,1976,3 increments | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
ii) Employees who have completed 4 years of service as on 1st January,1976,2 increments | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
iii | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
All other employees with more than one year's service shall be given one increment | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Now,if,without any flat or ad hoc increase of salary,the workmen were to be fitted into the revised scales of pay,it would obviously result in serious anomalous situations | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
In the case of several senior employees,the revised scale would yield but a very small and almost a token increase in the size of the pay packet whereas the junior employees would get a large benefit | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
While workmen raising industrial disputes for revision of wage-scales are certainly minded about their future prospects in the matter of wages,they,surely would be more concerned with the immediate benefits according to them | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
That was why the Industrial Tribunal thought that an all round flat increase of Rs.150/-in the case of Draftsmen and Rs.100/-in the case of other workmen was called for | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It was clearly so intended by the Tribunal as is evident from the reference to "flat increase of Rs.150/-in the category of Draftsmen and Rs.100/-in the case of the other categories".Since there was to be a flat increase of Rs.150/-and Rs.100/-in the case of draftsmen and other workmen respectively,the revised wage scale had necessarily to commence with figures Rs.150/-and Rs.100/-above the existing wage scales | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Immediately after the award was pronounced,while the iron was still hot as it were,the employees apparently realised that the employer might take advantage of the circumstance that it was not clearly mentioned in the award that all the employees were to get additional pay of Rs.150/-and Rs.100/-respectively and might contend that the Tribunal had only revised the wage scales by increasing the salary on entry into the service and restructuring the scale of pay and never granted any ad hoc increase of salary to all employees | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Therefore,they filed an application before the Tribunal for correcting the award so as to bring out what was intended | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
As it has now turned out what the employees apparently suspected the employer might contend,is precisely what the employer is not contending,though the employer did not choose to so contend before the Industrial Tribunal itself when the employees filed the application for rectification | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The application before the Tribunal was filed under Rule 31 of the Bombay Industrial Disputes Rules 1957,which is as follows | Statute | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
A Board,Court,Labour Court,Tribunal or Arbitrator may,at any time,suo moto or on an application made by any of the parties concerned,may correct any clerical mistake or error arising from an accidental slip or omission in any proceedings,report,award or as the case may be,decision | Statute | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The omission of the words to each employee first after the figure Rs.150/-and again after the figure Rs.100/-was clearly an accidental slip or omission which the Tribunal was entitled to correct | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
We are unable to see how it can be held to be otherwise | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
We are not impressed with the submission of the learned counsel for the Company that the corrigendum was in effect a fresh award | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
We,therefore,see no ground for quashing the order dated December 22,1978 of the Tribunal | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The result of the foregoing discussion is that Civil Appeal No.2299 of 1979 has to be dismissed in its entirety | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
We have already indicated that we agree with our brother Pathak,J.,that the appeal (Civil Appeal No.2300 of 1979) filed by the workmen should also be dismissed | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
While we find lot of force in the submission of Shri V.M.Tarkunde,learned counsel for the workmen that Dearness Allowance linked to cost of living index is ordinarily the best and the most scientific method of computing dearness allowance,it cannot always be said that an illegality warranting interference under Article 136 is committed if some other method is adopted | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The Tribunal has given satisfactory reason for adopting a different mode and we are not disposed to interfere with the award of the Tribunal | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
In the result both the appeals are dismissed without any order as to costs | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The Order of the Court was as follows | Ruling by Present Court | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
In view of the opinion of the majority both the appeals are dismissed and there is no order as to costs | Ruling by Present Court | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |