MANAGEMENT OF THE KIRLAMPUDI SUGAR MILLS LTD. versus INDUSTRIAL TRIBUNAL, A.P. & ANR.

Citation: [1972] 1 S.C.R. 428 · Decided: 26-08-1971 · Supreme Court of India · Bench: G.K. MITTER · Disposal: Dismissed

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Judgment (excerpt)

428 
MANAGEMENT OF THE KIRLAMPUDI SUGAR MILLS 
A. 
LTD. 
v. 
INDUSTRIAL TRIBUNAL, A.P. & ANR. 
August 26, 1971 
[G. K. MITTER, C. A. VAIDIALINGAM AND P. )AGANMOHAN 
"-, 
REDDY, JJ.] 
Industrial D'ispute-Recommendations of Central 
Wage 
Board 
for 
sugar whether vitiated by fact tha1 it had 'fixed uniform wages region ~i$e 
without further classification within each regidn-Tribunal's jurisdictio" to 
go into question of financial cupacity of cq"tnpqny to implenient recom-
mendations of Wage Board--Con1pany whether .. had financial capacity, 
·The Kirlampudi Sugar Mills Ltd. was started in !951 as a small unit 
and later was increased to a ]arger c!rush(ng 
capacity of 1000 tons. BY 
1963" the factory got into financial embarTassment. In the middle of that 
year the present managemen:t took over the factory~ on the specific assur .. 
ance of the Government that t~ey would provide for 3nd give all 
facili-
ties to enable them to run the factory. 
After the management was taken 
over there were disputes between the management and workers with the 
result that they referred various matters for 
adjudication incWding 
the 
claim for implementation of the recon1mendations of the 
Central 
\Vage 
Board for sugar. The disputed items related to categorisation of workers 
their fitments, fixation of work load, the demand. for increase of Rs. 10 
to be given to every v.·orke·r over the basic wage implementation of weight-
age, dearness allowance. the demand for giving grades and for giving re-
trospective effect etc. 
On issue No. IA the Tribunal held that categorisa-
tion of workers and their fitments and work load should ~ in accordance 
with the recommendations of the Wage Board; it deciC.ed in favpur of the 
management in respect of certain categories of workers but in respect of 
some others it gave relief to the workers. The Tribunal furiher heltl in 
respect of is~ue 2 and 5 before it that the financial capacity of the Appel-
lant was not such as to justify an increase of Rs. IO to,all the workers over 
the basic wag.e and dearness allowance or the payment ~f Rs. 5 to work-
men for implementation of the weightage recommended by ~e Wage Board. 
Appeal No. 1602 of ,.! \166 was filed in this Court by special leave bv the 
management 3.gainst tlle Award of the T~ibunal in respect of issue !A in so 
far as it went against them. 
Appeal No. 1603 of 1966 was filed by the 
workers against the Tribunal's decision 9n issues 2 and 5 and that part of 
issue tA which went against them. 
The questions ttiat fell for consi~era­
tion were : 
(i) whether the recommendations of th€ Wage Board were 
vitiated by the fact that they had fixed the wages uniformly region-wise 
without further classification·within each region: (ii) If they were valid, 
whether the Tribunal could go into the auestiofl of the financial capacity 
of the company to implement them; (iii) whether the company had the 
financial capacity to implement the recon1mendations. 
· 
HELD : The Wage Board following the principles' laid down by this 
Court has considered the capacity of the industry region-wise and has also 
fixed wages different from region to region having regard to the difference 
in the capacity of the Industry region-wise. 
Further it' has given good 
reason for not furnishing: a criteria for further classification of the industry 
within the region. 
In these circumstances prescribing the same wage ,for 
all units of industry in the sam.e region was justified ·and the fact that the 
B 
c 
D 
E 
F 
G 
H 
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., 
B 
·C 
D 
E 
F 
KIRLAMPUDI SUGAR MILLS V. IND, TRIB. 
(Jaganmohan Reddy, J.) 
429 
industry in the region had not been dlvicled into classes could not vitiate 
the recommendation of the Wage Board, [441 F-G] 
Workmen of Sltri Bajrang Jute Mills Ltd, V. Employers of Sh1·i Bajrang 
.lute Mills Lid., [1969] 2 S.C.R. 593, explained and distinguished. 
Express Newspaper (P) Ltd. v. Union of India & Ors., [1959] S.C.R. 
12 and French Motor Car Co. Ltd. v. Workmen, [1963] Supp. 2 S.C.R. 16, 
referred to 
However, notwithstanding the fact that a fair wage has been fixed by 
the Board which would be applicable to all the units in the region for 
which wage has been fixed, it may be open to any particular unit to plead 
that in fact its financial position is not such that it can bear the burden of 
implementing the recon1mendations. 
~he justification of the plea of want 
of financial capacity will depend upon the evidence of its financial position 
ove

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