SWASTIK ROLLING SHUTTERS AND ENGINEERING WORKS Vs. TAKI BILGRAMI S
LAWS(BOM)-1962-8-26
HIGH COURT OF BOMBAY
Decided on August 17,1962

SWASTIK ROLLING SHUTTERS AND ENGINEERING WORKS Appellant
VERSUS
TAKI BILGRAMI(S.) Respondents





Cited Judgements :-

M/S. POLYPHARMA PRIVATE LIMITED (THANE, DARAVALI AND BHIWANDI UNITS) VS. THE WORKMEN [LAWS(INDC)-2000-9-2] [REFERRED TO]


JUDGEMENT

Chainani, C.J. - (1.)The petitioners are a registered firm carrying on business as manufactures of rolling shutters, rolling grills, etc., in Bombay. A dispute between the petitioners and their employees, who are represented by respondents 2, 3 and 4, was referred for adjudication to the industrial tribunal under S. 17 of the Industrial Disputes Act. The tribunal made its award on 6 January 1962. The petitioners have challenged this award in so far as it relates to revision of pay-scales and dearness allowance, the consequential adjustments to be made and the differences to be paid as result of the decision of the tribunal. The award in regard to the demand for gratuity has also been objected to by the petitioner.
(2.)In so far as the award relates to the pay-scales, the dearness allowance, the adjustments to be made and the differences to be paid, the petitioners have contended that the tribunal has not followed the industry-cum-region principle, that the award of the tribunal in regard to these matters is inconsistent with the findings of the tribunal itself and that though the tribunal has made an observation that the petitioners have the capacity to bear the burden imposed upon them, the tribunal has really not applied its mind and considered the financial capacity of the petitioners to bear the burden of the increases in pay and dearness allowance granted by the tribunal. It seems to us that there is considerable force in these arguments. The principles, which are to be followed in fixing pay-scales, have been laid down by the Supreme Court in Express Newspapers (Private), Ltd., and another v. Union of India, and others [1961 - I L.L.J. 339 at 367.] Two of the principles enunciated by the Supreme Court are that in the fixation of rates of wages which include within its compass the fixation of scales of wages also, the capacity of the into consideration, and that the capacity of the industry to pay is to be considered on an industry-cum-region basis after taking a fair cross-section of the industry. At p. 365 the Supreme Court has quoted with approval the observations from a decision of the Labour Appellate Tribunal in Union Drug Company. Ltd., case [1954 - I L.L.J. 766.], that the financial condition of the company must be such as to lead to the conclusion that it would be able to pay the increments year by year for an appreciable number of years, for wage-scales when settled are intended to be long-term schemes. In the present case it appears from the award that instances of wages paid in many engineering concerns, which it was stated on behalf of the workers were in several respects comparable to the petitioners' firm, were brought to the notice of the tribunal After referring to this fact the tribunal has observed in Para. 17 : "I do not think the concerns mentioned in Ex. U. 1 can be considered as comparable in all material respects to this suit."
(3.)By this observation the tribunal suggests that in the opinion of the tribunal the wages to be fixed in the present case should be somewhat lower than those given in the other concerns. The same inference is suggested by the following other observation made by the tribunal in the same paragraph : "The union cannot claim that the basic wages should be as in other comparable concerns which are paying less dearness allowance than this unit."


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