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THE BIJAY COTTON MILLS LTD. versus THEIR WORKMEN & ANOTHER

Citation: [1960] 2 S.C.R. 982 · Decided: 12-02-1960 · Supreme Court of India · Bench: P.B. GAJENDRAGADKAR · Disposal: Dismissed

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Judgment (excerpt)

February 12 
• 
• 
982 
SUPREME COURT REPORTS [1960 (2)] 
THE BIJAY COTTON MILLS LTD. 
v. 
THEIR WORKMEN & ANOTHER 
(P. B. GAJENDRAGADKAR AND K. c. DAS GUPTA, JJ.) 
Industrial Dispu.te-Minimu.m basic wage fixed by Tribunal-
M odiflcation by Labou.r Appellate Tribunal according to stati/.fory 
1 
notification isst<cd two years after the award-If valid-Appropriate 
Govcmmcnt-Industrial Disputes Act, I947• (I4 of I947), 
Indus-
~
trial (Development and Regulations) Act. I95I (65 of I9JI). s. 2(a)(i). 
On the refusal of the appellant-employer to fix the mini-
rnnn1 wages and rates for contract work of the \Vorkmen-respon-
dents who alleged that they were paid below the level of bare 
subsistance 
v..1age, the dispute was referred to the Industrial 
Tribunal for 
adjudication. The first 
Tribunal could 
not 
fix any minimu1n basic wage and the a\vard of the second 
Tribunal which fixed a scale \Vas set aside on the ground 
that the appointment of the Tribunal was not published 
according to law. 
The third Tribunal ultimately fixed the basic 
minimun1 \vage on the industry-cum-region basis after consider-
ing the rates prevalent in various parts of the country and a 
place nearest to the appellant company. The minimum awarded 
by the Tribunal was slightly increased by the Labour Appellate 
Tribunal in accordance \vi th a statutory notification issued under 
the Minimum Wages Act, 1948 (XI of 1948), which had come 
into force after two years of the award of the Tribunal and by 
which a scale of minimum wage and dearness allo\vancc was 
fixed. 
On appeal by the appellant company by special leave. 
Held, that the Labonr Appellate Tribunal committed no error 
of la\v in awarding the same minimum basic wage 
which '\Vas 
statutorily fixed and which came into force only two years after 
•.
the award of the Tribunal. 
, 
In determining the minimum basic wage the fact that a large 
~
amount of dearness allo\vance \Vas paid to the employees in other 
J A
comparable occupations in the same region should not be ignored. 
In order that the Central Government might itself become 
the appropriate Government within the meaning of s. 2(a)(i) of 
the Industrial (Development and Regulation) Act, 1951, (65 of 
1951) it must specify in that behalf that the industry in question 
was a controlled industry. 
If the services of one Tribunal were not available to the 
appropriate ,.Government it vvas 
perfectly competent to that 
Government to appoint another Tribunal to take up the work of 
acljudication. 
CIVIL APPELLATE ,JURISDICTION: Civil Appeal 
No. 355 ofl958. 
Appeal by special leave from the decision dated 
Ill
December 12, 1956 of the Labour Appellate Tribunal 
11111
.. 
't' 
• 
S.C.R. 
SUPREME COURT REPORTS 
983 
of India, Bombay in Appeal (Born.) Nos. 77 and 103 
. 
B. C. Mills Ltd. 
A. V. Viswa,natha Sastri, 
S. N. Andley, J. B. 
of 1956. 
v. 
Dadachanji and Rcv;neshwar Nath for the appellant. 
Their Work»?Pn 
B. D. Sharma, for respondent No. I. 
1960. February, 12. The Judgment of the Court 
was delivered by 
GAJENDR~GADKAR, J.~The industrial dispute bet- Gajendragadkar f. 
ween the Bijay Co,tton Mills Ltd., (hereinafter called 
the appellant) and their workmen (hereinafter called 
the respondents)' which has given rise to this appeal 
by special leave has gone through a protracted and 
tortuous course. The respondents claimed that the 
scale of minimum wages and rates for contract works 
should be fixed for them because it was alleged that 
the payments made by the appellant were below the 
level of the bare subsistance wage. The appellant did 
not accede to the demand thus made by the respon-
dents, and so on December 1, 1950, the present dispute 
was referred for adjudication to the Industrial Tribu! 
nal consisting of Mr. D. N. Roy, under s. 10(1) read 
withs. 12(5) of the Industrial Disputes Act, 1947 (Act 
XIV of 1947) (hereinafter called the Act). ·Amongst 
the items thus referred for adjudication, the first two 
were (1) that the mill employees be paid minimum 
wages and rates. for contract works as shown in the 
two statements enclosed, and (2) that dearness allow-
ance be paid to all workers at the rate of Rs. 35 per 
mensem each and it may be increased or decreased 
according to rise or fall in prices. in the present 
appeal we are concerned with the minimum wages. 
It appears that Mr. Roy found himself unable to 
fix any basic minimum wage, and to support his view, 
that it would be inexpedient to fix any minimum 
basic 

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