Bhagwati - (1.) JUDGMENT :-
(2.) . The facts and circumstances which led to the .present appeal may be shortly stated as under. . The appellant, the management of the tea estates in Assam represented by the Indian Tea Association, Calcutta, used to supply certain quantities of rice and other articles of food at concession rates to their workmen. Before February 1950 the supply of rice at such concession rates to an adult male worker, was 5 seers per week. From February 1950 the rice quota was reduced by half-a-seer per week and for the said cut the employers agreed to pay cash compensation at the rate of 6 pies per working day. Due to shortage of cereals, the government of India notified on 18/11/1950 "an all-India cereal ration scale which laid down that no adult male worker was entitled to get more than 3 seers of rice per week." The result was a further cut of another seer of rice per week in the supply of rice at concession rates. The workmen claimed compensation in cash for this cut in the rice quota. This led to a dispute between the employers and the work- men and that dispute was referred for adjudication by the government of Assam by its notification dated 30/10/1950. In that adjudication proceeding which was numbered as reference No. 14 of 1950, the workmen claimed cash compensation at a certain rate. The employers on the other hand contended that whatever concessions had been given to their workmen in respect of the sale price of rice were ex gratia and therefore the workmen had no legal claim for compensation in respect of the quantity of the cat in rice ration so imposed. The employee contended in the alternative that even if they were under an obligation to pay cash compensation, the amount would be far less than the amount claimed by the workmen. The tribunal gave its award on 11/12/1951, which was published in the Assam Gazette on 2/02/1952 [1952-1 L.L.J. 402]. It held that the system of rice benefit at concession rate was a part of the workers' wage and the employers were under a legal obligation to pay cash compensation to the workmen for the said cut in the supply of rice. It also fixed the rate of compensation for the rice cut. The employers filed an appeal being appeal (Cal.) No. 27 of 1952 before the Labour Appellate Tribunal. At the hearing of that appeal, the employers did not reiterate their contention that they were under no legal obligation to pay cash compensation for the rice cut. They only questioned the rate of compensation which had been awarded. The contention of the employers was accepted and the rate of compensation for the rice cut was reduced. This award was pronounced by the Labour Appellate tribunal on 2/04/1954.
(3.) IN the meanwhile, on 11/03/1952, the government of Assam issued a notification in exercise of the powers conferred on it by the Minimum Wages Act and fixed the minimum wages of workmen employed in the tea gardens of Assam at certain cash rates. Under the terms of that notification, the government of Assam fixed the minimum wages which were to come into force with effect from 30/03/1952, consisting of basic wages and dearness allowance at the rates specified in the schedule annexed thereto. Paragraph 2 of the said notification is important and it runs as follows :- " 2. The rates are exclusive of concessions enjoyed by the workers in respect of sup- plies of foodstuffs and other essential commodities and other amenities which will continue an affected. The existing tasks and hours of work may continue until further orders." It appears that the minimum wages so fixed exceeded the total of the cash wages which the employers were paying to their workmen and the value of the concession at which rice was being supplied as also the amount of compensation for the cut which they were directed to pay by the award made in reference No. 14 of 1950. The employers therefore contended that the government's minimum wage notification had the effect of absorbing their cash compensation in the cash minimum wage that had been determined and that they were under no obligation to pay after the date of this notification the compensation for the rice cut over and above the minimum wages fixed by the government. The workmen on the other hand claimed that they should continue to get the cash compensation that was hitherto paid to them for the reduction in rice ration consequent. on the introduction of all-India ration scale over and above the minimum wages (basic wages and dearness allowance) that had been determined and notified by the government. A dispute thus arose between the employers and the workmen and the government of Assam referred the said dispute in the following terms for adjudication by the industrial tribunal, Assam, viz., " whether on account of the reduction in cereal ration consequent on the introduction of all-India ration scale the workmen employed in the tea plantations in Assam are entitled to cash compensation as apart. of the existing concessions over and above the minimum wages notified in government notification No. GLR. 352/51/56. dated 11/03/1952.";