SHAH - (1.) THESE appeals arise out ofan award made by the Industrial tribunal, Delhi, in 1. D. Reference No. 70 of1958: the first three appeals are filed bythe employers, and the last two by theemployees. By its award the IndustrialTribunal, Delhi, has framed two schemesrelating to payment of gratuity to theworkmen employed in four textile unitsin the Delhi region. The employers andthe workmen are dissatisfied with theschemes and they have filed these appealschallenging certain provisions of theschemes.
(2.) IN the Delhi region there are fourtextile units. the Delhi Cloth Mills-which will be referred to as D. C. M.;Swatantra Bharat Mills-which will bereferred to as S. B. M.; Birla CottonMills-which will be referred to as B.C. M.; and Ajudhia Textile Mills-whichwill be referred to as A. T. M. TheD. C. M. and S. B. M. are under onemanagement. On 4/03/1958 theChief Commissioner of Delhi made areference under S. 10 (1) (d) and12 (5) of the INdustrial Disputes Act, 1947,relating to four matters in dispute, firstof which is as follows; "Whether a gratuity for retirementbenefit scheme should be introduced forall workmen on the following lines andwhat directions are necessary in this respect? JUDGEMENT_919_AIR(SC)_1970Html1.htm The reference related to workmen onlyand did not apply to the clerical staffor mistries. There are two workmen's Unionsin the Delhi region-the Kapra MazdoorEkta Unioon-hereinafter called EktaUnion', and the other, the Textile Mazdoor Union.. The Ekta Union made aclaim principally for fixation of gratuityin addition to the benefit of providentfund admissible to the workmen underthe Employees Provident Funds Act, tobe computed on the consolidated wagesinclusive of dearness allowance. TheEkta Union submitted by its statementof claim that a gratuity scheme based onthe region-cum-industry principle i. e. auniform scheme applicable to all thefour units be framed. The Textile Mazdoor Union also supported the claim forthe framing of a gratuity scheme on thebasis of the consolidated wages of workmen but claimed that the scheme shouldbe unit-wise. At the trial, it appears thatboth the Unions pressed for a unit-wisescheme of gratuity. The tribunal entered upon thereference in respect of the fixation ofgratuity scheme in February 1964 andmade an award on 30/06/1966, operative from 1/01/1964. The awardwas published on 4/08/1966. Bythe award two schemes were framed-one relating to the D. G. M. and S. B. M.,and another relating to the B. C. M. andA. T. M. Under the second scheme thedigit by which the number of completedyear of service was to be multiplied indetermining the total gratuity was smaller than the digit applicable in the caseof the D. C. M. and the S. B. M. Thedistinction was made between the twosets of units, because the D. C. M. wadS. B. M. were, in the view of the tribunal 924"B.C.M. and A.T.M. The A.T.M.,it was found was a new-comer in thefield of textile manufacture, and bad formany years been in financial difficulties.
(3.) THE D. C. M. employs more than8000 workmen in its textile unit; theS. B. M. has on its roll 5000 workmen;the B. C. M. has 6271 workmen and theA. T. M. has 1500 workmen. THE D. C. M.and S. B. M. have a common retirementbenefit scheme in operation since theyear 1940. Under the scheme gratuitypayable to workmen is determined by thelength of service before retirement. THEscheme of gratuity in operation in theD. C. M. and S. B. M. is as follows: "In case of retirement from service elthe Mills as a result of physical disabilitydue to overage or on account of deathafter a minimum of seven years' servicein the concern: JUDGEMENT_919_AIR(SC)_1970Html2.htm THE scale of gratuity, it is clear, is independent of the individual wage scale ofme workman. In the B. C. M. andA. T. M. units there are no such schemes. Till the year 1958 there were nostandardised wages in the textile industry.According to the Report of the centralWage Board for the Cotton Textile Industry which was published on 22/11/1959, there were in India 89legions In which the textile industry waslocated. The basic monthly wages ofthe workmen in the year 1968 varied between Rs. 18.00 in Patns and Rs. 80.00 invarious centres like Bombay, Indore,Madras, Coimbatore, Madurai, Bhiwani,Hisar, Ludhiana, Cannanore and certainregions in Rajasthan and Delhi. TheWage Board recommended in Paragraph106 of its Report: "The Board has come to the conclusion that an increase at the average rateof Bs. 8 per month per worker shall begiven to all workers in mills of categoryI, from 1/01/1960, and a furtherflat increase of Rs. 2.00 per month perworker shall be given to them from 1/01/1962. Likewise an increase atthe average rate of Rs. 6.00 per month perworker shall be given to all the workersin mills of category II from 1/01/1960, and a furtner flat increase of Rs. 2.00per month per worker shall begiven tothem from 1/01/1962. These increases are subject to the condition thatthe said sums of Rs. 8.00 and Rs. 6.00 shallensure not less than Rs. 7.00 and Rs. 5.00 respectively to the lowest paid, and thatthe increase of Rs. 2.00 from 1/01/1962 shall be flat for all." Category l included the Delhi region.Since 1/01/1962, the basic minimum wage in the Delhi region is, therefore, Rs. 10.00 according to the recommendations of the Wage Board. In Bombay City and Island (including Kurla),the basic wage, according to the Reportof the Wage Board, was also Rs. 80.00and by the addition of Rs. 10.00 the basicwage of a workman came to Rs. 40.00. Theworkmen in other important textile centres also get the same rates.;