K.N. Wanchoo, J. - (1.) THESE four appeals by special leave arise out of two references which were disposed off by the Industrial Tribunal, Madhya Pradesh, by the same order. Two of them are by the management and two by the workmen. We shall deal with them together in the same way as the tribunal has done.
(2.) THE demand raised by the two references which are still outstanding are these: (i) Revision of pay scales with effect from July 1959; (ii) Bonus for the period January 1, 1958 to March 31, 1959; (iii) Gratuity at the rate of one month's earnings for each completed year of service ; (iv) Bonus for the year 1959 -60. It may be added that the company had paid bonus for the two periods at 10 per cent of the total earnings. The workmen however claimed that bonus should be paid at the rate of 30 per cent of the earnings. The tribunal worked out the bonus on the basis of the Full Bench formula and came to the conclusion that nothing further was due to the workmen for the period from January 1, 1958 to March 31, 1959. It however awarded a further bonus at the rate of 10 per cent for the period 1959 -60. A question was raised in that connection as to whether certain coal coolies were also entitled to bonus. The case of the company was that these coolies were not its employees but were the employees of an independent contractor, while the, workmen claimed that they were the employees of the company. The tribunal held that there was no reference of the question whether these coolies were the employees of the company or were employed by an independent contractor. Therefore the tribunal accepted the evidence of the contractor to the effect that they were his employees and rejected the claim made on behalf of these coolies for payment of bonus.
(3.) THE tribunal then considered the question of revision of wages and in that connection went into the financial capacity of the company to bear the burden of increase in wages. It found that the profit of the company in the year 1959 -60 was Rs. 32, 986. It also found that the increase in wage scales demanded by the workmen would add Rs. 30, 300 annually to the wage bill with a recurring increase of Rs. 5,000 annually on account of increments. It, therefore, held that the company was not in a financial position to bear the burden of increase in wages. It also compared the wage scales prevalent in the company with the wage scales of a similar company in Jabalpur under the same management and found that they were the same. It also took into account the wage -scales paid by the Madhya Pradesh Electricity Board to its employees at Sagar and on a comparison came to the conclusion that there was no case for increasing the wage -scales. It however, gave an increase of Rs. 5 per month on an Ad Hoc basis in the cost of living allowance subject to certain adjustments.;