RAMASWAMI, J. - (1.) BY its order dated September 13, 1961 the Government of India, Ministry of Labour and Employment, referred the industrial dispute between the employers in relation to the Martin's Light Railways Calcutta, and their workmen in the headquarters office for adjudication to Sri S. N. Guha Roy, Central Government Industrial Tribunal, Calcutta, with regard to the following issues : (1) Whether the demand of workmen that they be treated as part of the managing agents' staff is justified ? (2) If not, how far their demand for enhancement of pay-scales dearness allowance and the rate of puja bonus is justified ?
(2.) MARTIN Burn Ltd., respondent 2 in Civil Appeal No. 292 of 1964 and respondent 3 in Civil Appeal No. 293 of 1964 (hereinafter referred to as the managing agents), is a public limited company having its head office at 12 Mission Row, Calcutta. The Shahdara (Delhi) Saharanpur Light Railway Company, Ltd., the Arrah Sasaram Light Railway Company, Ltd., the Futwah Islampur Light Railway Company, Ltd., the Howrah Amta Light Railway Company, Ltd., and the Howrah Sheakhala Light Railway Company, Ltd., are five distinct and different light railway companies. Martin Burn, Ltd., were originally the managing agent of all these five railway companies, but after the recent amendment of the Companies Act, Martin Burn Ltd., continues to remain as "managing agent" of the Howrah Amta Light Railway Company, Ltd., and the Shahdara (Delhi) Saharanpur Light Railway Company, Ltd., and become the secretaries and treasurers of the remaining three light railway companies. The five railway companies maintained a joint head office at 9, Mercantile Buildings, Lall Bazar Street, Calcutta, and all expenses for the establishment of the joint head office were, at all material times borne by the railway companies in an agreed proportion. The railway companies also met the expenses of the workmen employed at the joint head office. The terms and conditions of the workmen employed by the railway companies at the joint head office have been different from the terms and conditions of service of the workmen employed at the head office of the managing agents. The workmen employed at the headquarters of the railway companies, however, claimed that they should be treated as part of the managing agents' staff and they should be paid salary and allowances on that basis and, in the alternative they pressed for a proper fixation of pay scales and increase of dearness allowance and Puja bonus. The claim was resisted by the managing agents and also by the railway companies. But its award dated June 22, 1962 the tribunal head the workmen at the joint head office of the railway companies were the employees of the railway companies and not of the managing agent and further that the question was barred by the principle of res judicata. On the second issue the tribunal observed that there was no jurisdiction for making a radical change in the existing scales of pay in the different grades, other than those of clerks, cash counters and cash assistant. The tribunal further held that the minimum pay wherever it was below Rs. 70 should be raised to Rs. 70 and fixed the grades of clerks, cash counters and cash assistant at Rs. 70-3-94-4-134. As regards non-clerical members of the subordinate staff, such as ticket counters, literate sorters and daftries, ticket binders, peons, armed guards, durwans, car-drivers, etc., the following revised grades were fixed.Rs. Ticket counter . . 50-2-80 Literate sorter and daftry . . 35-2-65 Ticket binder . . 35-1-50 peon . . 30-1-40-2-50 Armed guard . . 40-1-50-2-60 Durwans . . 32-1-47 Car-drivers . . 60-3-90-2-100 Waterman and sweeper . . 30-1-45 The dearness allowance of the staff drawing pay of Rs. 100 and below in the clerical grades was fixed at 135 per cent of the basic salary on the cost of living index 471 (base 1939 : 100). The tribunal further directed that for every rise of 10 points above 471 every fall of 10 point below 471, the dearness allowance should rise or fall by 5 percent. But for members of the staff drawing above Rs. 100 no change was made in the existing system of dearness allowance. For the non-clerical staff dearness allowance was fixed at 115 per cent of the basic salary, subject to a minimum of Rs. 40 and for every rise or fall of 10 points above and below 403 the dearness allowance was to rise to fall by 5 per cent. With regard to bonus, the tribunal held that the union's claim for enhancement of bonus for they years 1960 and 1961 was not justified and the bonus for 1960 should be at the rate of one month's basic pay as already declared and for 1961, also, it should be at the same rate.
(3.) CIVIL Appeal No. 292 of 1964 is brought by special leave on behalf of the workmen against this award. Civil Appeal No. 293 of 1964 has been brought by special leave on behalf of the railway companies against the sane award. In civil Appeal No. 292 of 1964 the learned counsel on behalf of the appellants put forward the argument that the workmen were really in the employment of the managing agents and not of the railway companies and they should be treated as the managing agents' staff. It was contended that the findings of the tribunal on this issue was vitiated in law. We are unable to accept this argument as right. The question depends upon the proper interpretation of the two service agreement - Ex. 3 which was in force from 1941 to March, 1954 and Ex. 3(1) which came into effect from 1 April, 1954. It was admitted on behalf of the union that the members of the subordinate staff in the head office of the railway companies signed the old agreement as also the new agreement. The service agreement. Ex 3, is in the following form :"Agreement of hiring and service made this day of 19 between son of the one part and the managing agent acting by and through the General Manager of the system of Light Railways of the other part. ;