LexKAMANI METALS & ALLOYS LTD. versus THEIR WORKMEN
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• B c D r G H KAMANI METALS & ALLOYS LTD. v. THEIR WORKMEN January 24, 1967 (M. HIDAYATULLAH, S. M. SIKRI AND C. A. VAIDIALINGAM, JJ.] Industrial Dispute-Criteria for revision of wages and dearnes.• a//ow- ance-W hat ar~ comparable cone.ems-Departure from point to point odjrutment when permissible-Award-Interference by Suprem• Court in ap1>6al-RAtrospective opera1ion of award-L•galll)I of-Refertnct !D the Tribunal, with resptct to sptcial categories of empioye•s-Wl1en Trib111llll can fix new scales for all employees. 1be award of the Industrial Tribunal in an industrial dispute between Ille appellanto(lOmpany (manufacturing products of non-ferrous metals and .alloys) and its workmen, was challenged in appeal to this Court on the following grounds:- ( 1) There was no change of circumotances justifying a revision of the wages, pay scales and deameso allowance, (2) while making auch revision by it. award, many of the matters stated in the judgment of this Court in Novex Dry Cleaners v. Its Workmen, [1962] I LLJ. 271 (S.C.) were not considered by the Tribunal; (3) the Tribunal had com- pared dissimilar concerns and not compared similar ones; ( 4) the Tribunal took into account an irrelevant factor, namely, the yield from incentive bonus; ( 5) no case was made out for adjustment of the workmen in the new time'8cale after grantin!f them one additional Increment after every 3 years service and two add11ional increments, after 5 years' service (6) the Tribunal was in error in making the award retrospective from !st October 1962, when the reference was made to it only on 14th December 1962; (7) the Tribunal had gone beyond the reference inasmuch as the reference was in respect of special categories of monthly-rated employees by designation, whereas the Tribunal had fixed the new scales of pay aot only for those workmen but for all clerical and other workmen who were classified as Grades A, B, C, and D; ·and ( 8) the linking of dearness allowance, after the consumer price index 321, to wages, has made a de- parture froin the fixation of dearness allowance fixed in another concern, where the percentage was that of the dearness allowance and not of the basic salary. HELD : Io. an ar,peal brought by special leave against the award, before a party can c aim redress, it must lie shown ·that the award was defective by reason of an exoess of jurisdiction, or of a substantial error iil applying the law or some settled principle, or of some groso and palp· able error occasioning •ubstantial in1ustice. [471 A.CJ ( 1) There- was no revision of wages or dearness allowance in the appeDant-<:0mpany during the last 20 years even though commodity prices had soared high, the general level of wages had gone up, and there had been two or three revisions already in some industries, while in some othm, Wage Boatds have been appointed IX> revise or fix wages. There- fore, the demand of the workmen for a revision was justified. [466 F·H] (2) In order to make the fair wage meet the increase in the cost of living dearness allowance is paid to make up the disparity to a certain ex.tent. When, In course of time, it is found that it is not sufficient, because · of a further increase in the cost of living, a revision of wages and dearness ~owance becomes necessary. This Court in its decisions has merely laid down the priru:ipal 0 guide-lines to be followed in industrial adjudica- 464 SUPllBME COUIT llBPOllTS (1967) 2 S.C.R. tion. ·rhc v;1r1ou~ ub~Cr't':lliun.i are not intended to operate wilh the A rigidity of a statutory enactment. Each case must be considered on its own tacts and only relevant circumstancec; should enter into the determi· nalion or the wage ~tructurc. The fu.1damen1al principles to be considered are: (•) how the wages of the worker.. concerned compare with .those pai<l. to work\!r.i of similar grade and skill hy other employers. in similar or olhcr industries in rhe region, and (b) what wages rhe establishment or industry can atfrrd to pay. Jn the present case, taking into account the B increase in its net profits and the fact that the burden of the increosed wage bill would not be more than 1/ 10th of the net profits, the Tribunal was rigltt. in holding that the appellant had the capacity to pay the incrca<Cd wage bill. [467 B-C, H; 468 A-B, G-H; 469 A-DJ , ( 3) The Tribunal :om pared the appellant<ompany with four eniti- neenng concerns. One of them belong
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