Vaidialingam, J. - (1.) This appeal, by special leave, by the company is against the award dated February 1, 1968, of the Fourth Industrial Tribunal in case No. VIII-218 of 1967, directing the appellant to pay dearness allowance according to the rates on the basis of the Bengal Chamber of Commerce Scheme, for both the clerical and the subordinate staff, linked with the rise and fall in the cost of living index.
(2.) By its order dated April 22, 1967, the Government of West Bengal referred for adjudication the following issue. " Whether the existing rates of dearness allowance require any modifications If so, to what extent and from which date Whether the Scheme of D. A. should be linked up with rise and fall in the cost of Living Index If so, what should be the basis - According to the union, there is a big gap between the existing wage and the living wage of the workmen in the company. The company was paying dearness allowance to its workmen at a rate which was far less than that paid by other comparable concerns of the region. It was the further case of the union that the Bengal Chamber of Commerce Scheme of dearness allowance, as was being followed by all concerns of the local region, provide for about 90 per cent neutralisation in the cost of living upto a certain stage of pay 45 per cent neutralisation upto another stage and 22 1/2 per cent neutralisation for the rest of the pay. Though there has been, from time to time, adjudication regarding the claim of the workmen, there has been a very steep rise in the cost of living index and living conditions and, therefore, there is justification for revising the existing rates of dearness allowance. The union further pleaded that the dearness allowance should be linked with the price index and the cost of living and that the financial position of the company was such that it can afford to give dearness allowance according to the Bengal Chamber of Commerce Scheme.
(3.) The appellant controverted the claims of the workmen on the ground that the demand of the workmen to award dearness allowance according to the Bengal Chamber of Commerce Scheme has been consistently rejected by the Tribunal and also by this Court. Company's financial position was not such as to justify any modification in the existing rates of dearness allowance.;