GAJENDRAGADKAR, J. - (1.) A claim for an increase in the dearness allowance made by then workmen of the management of Remington Rand of India was referred for adjudication to the Industrial tribunal at Delhi and had been partly allowed. Against the award pronounced by the tribunal partially upholding the claim of the workmen, two cross-appeals have been brought to this Court by special leave. The company in its Appeal No. 12 of 1961, contends that no case had been made out for an increase in the existing rate and schemes of dearness allowance, whereas the workmen in their Appeal No. 13 of 1961 argue that the relief granted by the award in insufficient; the higher rates of dearness allowance should have been awarded and that the revised rates should have been brought into force, not from 1 December 1959, but from the date when the demand was made by the workmen in that behalf.
(2.) IT appears that on 9 April 1953, a comprehensive agreement was reached between the parties in respect of several terms of employment. Amongst the items included in the compromise was one in relation to the dearness allowance. This is how the agreement had fixed the payment of dearness allowances "DEARNESS ALLOWANCE. Rate of dearness allowance when Variation in the Slab in rupees. the working class cost of living percentage in Col. index is in the 351-360 group (2) to be allowed (March 1953 figure). per 10-point movement in the index figures for Delhi. (1) (2) (3) 1-100 .... 70 per cent of the basic pay ... 5 101-200 .... 35 per cent of the basic pay ... 2 1/2 201 and .... 17 1/2 per cent of the basic ... 1 1/4 over pay Miximum Rs. 200. Minimum Rs. 58." It is common ground that by virtue of the operation of the clause providing for the variation in the payment of the dearness allowance with the rise in the index of cost of living, at present the workmen are paid on the first hundred 95 per cent, on the second hundred 47 1/2 per cent and on the third hundred 23 3/4 per cent of the basic pay. This percentage is determined on the cost of living index base 401-410.In 1958, a dispute was raised by the workmen in regard to dearness allowance and in fact, on 3 September 1958, they had given a strike notice to the company. Subsequently, the matter was discussed by the company with its workmen and as a result of the discussions, an interim settlement was evolved by consent. By this interim settlement, it was agreed that the adjustment in the dearness allowance by reference to the rise in the cost of living index will be made by the management every month instead of every six months as was being done till then. It was also agreed that the minimum dearness allowance in Delhi Rs. 60 per month. This agreement was to be effective from the month ending 20 August 1958, that is to say, its operation began from 20 July 1958. The last clause of this agreement provided that the parties will negotiate amongst themselves for a final settlement and in case no settlement is reached, it will be open to the union to approach the conciliation officer. This agreement was signed on 8 October 1958.
(3.) IT appears that the parties were unable to come to a final settlement in respect of the dispute raised by the workmen and so, on 25 July 1959, the said dispute was referred for adjudication. Before the arbitrator the workmen placed their claim in this way : "(1) The existing rate of dearness allowance should be increased by 40 per cent on the first hundred, 20 per cent on the second hundred and 10 per cent on the third hundred up to a maximum of Rs. 200. (2) The minimum dearness allowance should be raised to Rs. 80 and provision should be made for an increase in the minimum dearness allowance with the rise in cost of living. (3) The scheme of dearness allowance should be linked to middle class cost of living index either of Bengal Chamber of Commerce, or of the Delhi Chamber of Commerce.(4) The new rates of dearness allowance including minimum dearness allowance should be made applicable retrospectively from 21 July 1958." ;