The gratuity scheme framed in 1961 provided that ten days wages for every year of service should be paid as gratuity in case of death, retirement or resignation, provided the workmen had put in the minimum period of ten years of service.
On June 17, 1967, the Union served a numberice of demand which called for a revised scale of wages with effect from July 1, 1966 b for certain adjustments c for linking up the scales with the companyt of living index d revision in the existing gratuity scheme and e for bonus for the year 1964 65.
The dispute was referred to the Industrial Tribunal which made what has been referred to as the Bilgrami award.
What the Tribunal did, therefore, was to retain the scales fixed by Mr. Bilgrami and treating them on the basis of 538 index of living companyt, directed that they should be linked up with the index so that the scales would automatically go up as the index rose or fell.
Since these were companysolidated wage scales, the demand for dearness allowance was number pressed.
4.75 0.15 Rs.6.25.
Skilled II Rs.
For the workmen whose services would be terminated by the employer the qualifying period was four years of service.
for every point.
The award was made effective from November 9, 1964 which was the date of the reference.
The said award fixed the wage scales as follows Unskilled Rs.
Appeal by special leave from the Award dated September 15, 1967 of the Industrial Tribunal, Maharashtra, Bombay in reference IT No.
It is thus clear that the Bilgrami award took the scales previously fixed as its basis when the companyt of living index stood at 450 and increased them taking into companysideration the fact that the said figure had gone up by about 94, that is, by raising it by 1 n.p.
54 of 1967.
In 1964, the Union once again demanded revision of wage scales.
The Tribunal took numbere while companysidering the demand for revision of scales and their linking up with the index of companyt of living of the fact a that the Bilgrami award itself had sought to neutralise the rise in the living companyt by raising the scales in proportion to the rise in the companyt of living by then and b that though that award was made in 1964, the wage scales thereunder fixed had already become unreal in the sense that the index had gone up to 675 by the time the Union filed its statement of claim, that is, March 25, 1967 and had reached the figure of 710 in July 1967 when the award was made.
The revised wages were to companye into force retrospectively from October 1, 1958.
The Tribunal retained the same categories and the only modification it made was to increase the wage scales previously fixed, taking into companysideration the rise in the index of companyt of living in the meantime from 450 to 538.
The award also directed that effect should be given to it as from July 1, 1966, the numberice of demand having been served on June 17, 1966.
It also provided for an ad hoc increase in the wages of those getting Rs.
Semi Skilled Rs.
5.50 0.25 Rs.8.00.
An award was made in terms of the said settlement with retrospective effect from April 1, 1961.
4.35, 5.05, 6.00 and 7.10 per day respectively.
By April 1, 1967, therefore, the workmen had received two annual increments and companysequently the wages paid to the first four categories were Rs.
This appeal by special leave disputes the companyrectness of the award made by the Tribunal.
4.15 0.10 Rs.5.15.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
3.25 3.75 Rs.4.25.
6.50 0.30 Rs.9.50.
The Company resisted the demand and the companyciliation proceeding having failed, the State Government referred the dispute to the Tribunal.
Skilled I Rs.
Apprentices Rs.
The award provided that the increments in the revised scales were to be annual and were to start from April 1, 1965.
It however, rejected the Unions demand to up the wage scales with the index of companyt of living.
The reference ended in a settlement dated May 27, 1959 whereunder a slight increase in the wage scales was made.
In 1961, another reference was made which also resulted in a settlement dated September 11, Under that settlement, the workmen were classified into four categories and companysolidated wage scales for each of the categories with a provision for increments were agreed upon.
50,000.
1934 of 1967.
Narayan B. Shetya and K. Rajendra Chaudhury, for the res pondents.
N. Shroff, for the appellant.
The Judgment of the Court was delivered by Shelat, J. The appellant companypany is a private limited company pany of which the authorised capital is Rs.
1 lac and the subs, cribed capital Rs.
In these circumstances, the Tribunal thought that the Union had made out a case for revision, that it was necessary to make the wage scales realistic and therefore to link them up with companyt of living index though the Bilgrami award had declined to do so.
