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MCLEOD AND COMPANY LTD. versus WORKMEN

Citation: [1964] 5 S.C.R. 568 · Decided: 29-11-1963 · Supreme Court of India · Bench: P.B. GAJENDRAGADKAR · Disposal: Dismissed

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Judgment (excerpt)

568 
SUPREME COURT REPORTS 
[1964] 
1963 
his explanation on March 11, 1952. That notice 
was not concerned with any concealment that came 
N.A. Malbari to light from the production of the books on August 
and Bros. 
17, 1953 and, therefore, on this concealment the 
v. 
assessee had never been heard. In assessing a penalty 
Commissioner of on this notice subsequently acquired knowledge would 
Income-tax, 
be irrelevant. 
Bombay 
. 
. 
The result is that the appeal fails and it is dis-
Sarkar J. 
missed with costs. 
1963 
November 29 
Appeal dismissed. 
MCLEOD AND COMPANY LTD. 
v. 
WORKMEN 
(P.B. GAJENDRAGADKAR AND K.C. DAS GUPTA, JJ.) 
Industrial Dispute-Worker's Β·claim for cash allowance in 
lieu of tiffin arrangements-Implied condition of service-Re-employ-
ment of retired persons-Limited direction b)' Tribunal, if proper. 
The disputes between the appellant company and its workmen 
were referred to the Industrial Tribunal. The workmen claimed 
that (1) they should be given cash allowance in lieu of the tiffin 
arrangements made by the company. and (2) the practice started 
by the company of re-employing retired persons should be dis-
continued. The Tribunal directed : (I) the clerical staff should be 
paid As. -/8/- per day and the subordinate staff As. -/6/- per day 
on all working days, and (2) the company should stop the re-
employment of retired workmen in the category of clerks above 
C grade. In respect of the subordinate staff as also in regard to 
the lower grade clerks, the Tribunal thought it unnecessary to make 
any such direction. The evidence showed that in the region 31 
comparable concerns were supplying free tiffin to their employees 
and that the appellant company had been throughout making . 
provision for tiffin to its employees. It was also found that the 
policy adopted by the company of re-employing the retired personnel 
was not based solely on humanitarian grounds and that when 
retired persons were re-employed they were paid a much smaller 
salary for doing the same work than they were drawing before 
retirement. 
β€’ 
5 S.C.R. 
SUPREME COURT REPORTS 
569 
Held: 
(i) Though under the provisions of the Factories 
Act there was no obligation on the company, either statutory or 
otherwise, for giving the workers a cash allowance for tiffin. 
the history of the relations between the parties coupled with the 
prevailing practice in the comparable concerns showed that it 
was an implied condition of service that in addition to the wages 
and dearness allowance a provision for tiffin was an amenity to 
which the employees were entitled. and that the decision of the 
Tribunal could not be interfered with. 
(ii) The limited direction issued by the Tribu,ial in respect 
of the re-employment of retired persons was neither improper nor 
unjustified. 
CIVIL APPELLATE JURISDICTION: 
Civil 
Appeal 
β€’ 
No. 514 of 1963. 
Appeal by special leave from the judgment Award 
dated August 21, 1962, of the Fourth Industrial Tri-
' 
bunal, West Bengal in Otse No. VIII-332 of 1961. 
A. V. Viswanatha Sastri, D.N. Gupta, S.C. Mazum-
dar and B.N. Ghosh, for the appellant. 
D.L. Sen Gupta and Janardan Sharma, for the 
respondents. 
November 29, 1963. The Judgment of the Court 
was delivered by 
1963 
Mcleod and 
Company Ltd. 
v. 
Worknien 
GAJENDRAGADKAR, J.-The industrial dispute be- Gajendragadkar 
tween the appellant, Mcleod & Company Ltd., and 
J. 
the respondents, its workmen, which has given rise 
to the present appeal centered round two items of 
claim made by the respondents. The respondents 
claimed that they should be given cash allowance 
in lieu of the tiffin arrangements at present made by 
the appellant, and they urged that the practice started 
by the appellant of re-employing retired persons 
should be discontinued. 
The Tribunal has granted 
the first claim and has directed that the clerical staff 
should be paid As. -/8/- per day and the subordinate 
staff As. -/61- per day on all working days in lieu of 
the tiffi.n arrangements which are at present made 
by the appellant. In regard to the second claim, 
the Tribunal has ordered that the appellant should 
stop the re-employment of retired workmen in the 
category of clerks above 'C' grade. 
In respect of the 
570 
SUPREME COURT REPORTS 
[1964) 
1963 
subordinate staff as also in regard to the lowest grade 
clerks, the Tribunal thought it unnecessary to make 
Mcleod and any such direction. That is how the latter claim has 
Company Ltd. been partially all

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