Gajendragadkar, J. - (1.) This appeal arises out of an industrial dispute between the appellant Amritsar Rayon and Silk Mills and its workmen. The dispute originally related to seven demands made by the respondents against the appellant and these seven demands were referred by the Punjab Government for industrial adjudication to the Industrial Tribunal, Jullunder, under S. 10(1)(d) of the Industrial Disputes Act. 1947. The Tribunal has made its award in respect of these demands. In the present appeal, which has been brought to this Court by special leave, we are concerned with the award in so for as it deals with the respondents' claim for a gratuity scheme. The appellant urged that no case had been made out for the framing of gratuity scheme. This plea has been rejected by the Tribunal and a gratuity scheme has been framed. It is the propriety and the validity of this scheme which are challenged before us by Mr. Kapur on behalf of the appellant in this case.
(2.) The scheme framed by the Tribunal read thus: (1) In case of death of an employee while he is in the service of the concern or his becoming incapable of serving further due to physical or mental disability, one month's basic wages for each year of his service. In case of death, the gratuity will be payable to the heirs of assigns of the deceased workmen. (2) On termination of an employees' service by the concern after he has put in five years' service - Halt a month's basic wages for each year of his service. (3) No gratuity would be payable to an employee who resigns his job but if he has served for fifteen years continuously and is rendered unfit to serve further by old age or protracted ill health, he shall be given gratuity calculated at the rate of one month's basic wages for each completed year of his service. (4) No gratuity would be payable to an employee who is dismissed for misconduct.
(3.) In rejecting the appellant's contention that no scheme should be framed, the Tribunal has found that the appellant which was started in 1934 is the biggest Textile Mills in Amritsar and its career so far has been one of success all along the line. The invested capital of the concern is Rs. 14 lakhs and its working capital is Rs. 2,70,000. On its roll are employed 1,250 employees whose monthly wage bill comes to Rs. 1,20,000. It is admitted that the appellant has been paying bonus to its workmen since 1946 and has allowed dividend on invested capital. It contributes to the Provident Fund and the Employees State Insurance Scheme. Having regard to this financial position of the appellant, the Tribunal has held and we think rightly, that the appellant cannot successfully resist the demand for the framing of a gratuity scheme.;