VQLTAS LIMITED Vs. VOLTAS AND VOLKART EMPLOYEES UNION BANGALORE
LAWS(SC)-1976-7-11
SUPREME COURT OF INDIA (FROM: KARNATAKA)
Decided on July 27,1976

VQLTAS LIMITED Appellant
VERSUS
VOLTAS AND VOLKART EMPLOYEES UNION,BANGALORE Respondents

JUDGEMENT

Chandrachud, J. - (1.) This appeal by the Management of Voltas Limited, Bangalore, arises out of a reference made by the State of Mysore on November 25, 1965. The reference was made under Sec. 10(1) (d) of the Industrial Disputes Act, 1947, for an adjudication of some 16 demands of the workmen. We are concerned in this appeal solely with the question relating to the fixation of ceiling on dearness allowance.
(2.) The Additional Industrial Tribunal, Bangalore, made an award on October 16, 1967 fixing a ceiling on dearness allowance at Rs. 400. In Civil Appeal 1380 of 1968 filed by the workmen, this Court set aside the award and remitted the case back to the Tribunal for a fresh decision on two questions:(1) Whether any ceiling on dearness allowance existed as regards the employees of the Bangalore branch of the company and (2) Whether such a ceiling can in law be fixed. The judgment of this Court which is dated December 21, 1972 is reported in 1973 (1) Lab LJ 111 .
(3.) Pursuant to the liberty reserved by this Court under its judgment of remand, parties filed additional evidence before the Tribunal in support of their respective pleas. The respondent - workmen contended that the scheme of dearness allowance applicable to the workmen of the Bangalore branch did not provide for ceiling and no question could therefore arise of revising the ceiling on dearness allowance payable to the Bangalore employees. The workmen were, therefore, entitled to get dearness allowance linked to the Cost of Living Index and based on their basic salaries. The Company, according to the workmen, was making enormous profits, it did not ever plaed incapacity to meet their demands and, therefore, a ceiling on dearness allowance could not be fixed by the Tribunal under the law.;


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