MANAGEMENT OF NATIONAL PROJECTS CONSTRUCTION CORPORATION LTD. versus THEIR WORKMEN & ORS.

Citation: [1976] 2 S.C.R. 189 · Decided: 08-10-1975 · Supreme Court of India · Bench: A. ALAGIRISWAMI · Disposal: Appeal(s) allowed

Judgment (excerpt)

• 
189 
MANAGEMENT OF NATIONAL PROJECTS CONSTRUCTION 
CORPORATION LTD. 
v. 
THEIR WORKMEN & ORS. 
October 8, 1975 
A 
[A. ALAGIR!SWAMI, P. K. GOSWAMI AND N. L. UNTWALIA, JJ.] 
B 
Industrial dispute-Reference of dispute to 
arbitration--Settlement-lnter-
Pretation of its clauses. 
The workmen of the appellant consisted of three categories : regular staff, 
work-charged staff and casual labour (muster-roll employees). By a settle-
ment between the parties, it was agreed that certain questions like revision of 
pay, etc., should be referred to arbitration. Before the settlement, however, 
wl!ges of muster roll workmen were raised to a ·minimum of Rs. 3 /- and in 
C 
respect of the same category of persons who were drawing Rs. 3 /- or more 
per day, the rise was 50 paise per person. In the case of this category of 
workmen there had also been an earlier settlement in 1966. The Industrial 
Tribunal, in its award, allowed an increase of 25 per cent in the wages of all 
workmen including the mnster roll workmen. The appellant sought to quash 
the award of the Tribunal but the High Court dismissed the writ petition. 
Allowing the appeal to this Court, 
HELD : The wages of muster roll workmen was not one of the points agreed 
to be referred to the arbitrator for adjudication. The Industrial Tribunal 
was acting beyond its jurisdictfon in allowing 25 per cent increase in the wages 
of the muster roll workmen. The only reason the Industrial Tribunal has 
given is that the point under reference by itself did not exclude muster roll 
workmen and that it clearly mentioned that the parties had agreed that the 
demands regarding the revision of pay scales of the workmen should be· referred 
to arbitration and no exception had been made against the muster roll work-
men. 
That clause in the settlement should be read along with the rest of the 
settlement and the charter of demands. 
Had that been done, there would 
have been no room for the misunderstanding. The revision of pay scales 
of the muster roll workmen was already covered by . the settlement. 
[l92B; 191F·G] 
CIVIL APPELLATE JURISDICTION: 
Civil Appeals Nos. 2163-2164 
of 1969. 
D 
E 
' From the Judgment and Order dated the 17th March, 1969 of the 
F 
Patna High Court in Civil Writ Jurisdiction Case Nos. 477 and 479 
of 1968. 
F. S. Nariman, K. J. John and !. B. Dadachanji, for the Appellants . 
J. N. Chaubey (In person) Respondent No. 1. 
R. C. Prasad, for State of Bihar.. 
G 
The Judgment of the Court was delivered by 
ALAGIRISWAMI, J.~The appellant, the National Prqjects Cons-
truction Corporation Ltd., was engaged in execution of two projects, 
Chandan Dam Project and the Gandak Dam Project. On 31st January 
1967 the N.P.C.C. Workers' Union of the Chandan Dam Project gave 
a notice of strike and on 1st April 1967 the Labour Union· of the 
H 
Gandak Dam Project gave a similar notice. 
These 
notices 
were 
accompanied by a charter of demands which are practically the same 
A 
B 
c 
0 
190 
SUPREME COURT REPORTS 
(1976] 2 S.C.R. 
in both cases. Thereafter a settlement was arrived at with both these 
Unions on 11-4-1967 in the presence of the Labour Commissioner, 
Bihar the terms of which were also similar. By that settlement cer-
tain questions were agreed to be referred to arbitration and those 
questions are found in paragraph 4 of both the settlements. The dis-
pute with both the Labour Unions was accordingly referred to the 
arbitration of the Presiding Officer, Industrial Tribunal, Bihar, Patna 
on 3rd May, 1967. The arbitrator's award was sought to be quashed 
by means of a writ petition filed by the appellant before the High 
Court of Patna. 
A Division Bench of the High Court dismissed the 
writ petition except in respect of one point which is not important for 
the purpose of this appeal. This appeal is filed against the judgment 
of the Patna High Court by way of certificate granted by the High 
Court. 
The points canvassed before us were regarding the wages of the · 
muster-roll workmen and the project 
allowance for 
them. In the 
settlements referred to earlier the relevant portion regarding these 
workmen reads thus : 
"Keeping in view the drought conditions in the State and 
consequential steep rise in prices of commodities since the 
wages of workmen in this unit were increased in the year 
1966, management agrees that no muster roll workmen will 
be paid less than Rs. 3/- per day with effect from 11-4-1967. 
Management agrees to the flat increase of 0.50 

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