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THE HINDUSTAN TIMES LTD., NEW DELHI versus THEIR WORKMEN VICE VERSA

Citation: [1964] 1 S.C.R. 234 · Decided: 14-12-1962 · Supreme Court of India · Bench: P.B. GAJENDRAGADKAR · Disposal: Case Partly allowed

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Judgment (excerpt)

1962 
"Vehru Motor TrOtrS• 
port Co·of1tr•lir1 
Socitt) Lid. 
v. 
SllJU of Raja.""1it 
Wanchoo, J. 
1962 
D"""b"', .H. 
231 
SUPREME COURT REPORts [1964] Vot. 
\Ve therefore dismiss the petition but in the 
circumstances of this case pass no order asto costs. 
THE HINDUSTAN TIMES LT1)., 
NEW DELHI 
v. 
THEIR WORKMEN 
VICB VERSA 
(P. B. GAJENDRAOADKA.R, K. N. WANCHOO, 
K. C. DAS GuPTA and J.C. SHAH, JJ.) 
Industrial Di~pute--Fi•·atiun of waye structure-Factor.• 
lo be co11sidered-Fair IVage-Lidng IVagc-l!:xtent of power to 
interfere under Art. 136 with w~gc •cale fixed by Tribunal-
Dearness allowance on basis of ,,/iJiny ocafcs-/nterim agreement 
r<ganling interim relief not to be 
ignured-Lea.1:r, rule.s-Grutu. 
ity-J!.ietireni.ent 1tqe-Retrusper:tit·c t1pr:rr1ti1J1l t1f azvard-J)c/hi 
Shops & Jtstablisliment Act, 1954 (Ddlii 7 of 1Vii4)-1!:111ployw' 
Stale 
In.rnrance Act, 1948 (34 of 1!148)-lwlu..•trial Di8putes 
Act, 1947, (U of 1!147). 
The Chief Commissioner, Delhi, referred an L1dwtrial 
dispute for adjudication to the Industrial Tribunal, Delhi, 
which gave its award on March 16, 1959. Both the appellant 
and the respondents were dissatisfied with the award and they 
came to this Court by Sp<.'Cii.l leave. The award was challenged 
by the appellant with regard to scales of pay, dearness allo-
wance, 
adjustments, leave rules, gratuity and 
rctro.<1pectivc 
effect of the award. The respondents attacked the award as 
reg~rds the working hours, l•ave rules and retirement age. 
Ile/a, that while social justic demand• that workmen 
should get a fair share of the national income which they help 
to produce, it has also to be seen that that docs not result in 
the drying up of the source of national income itself. 
lnroada 
1 S.C.R. 
SUPREME COURT REPORTS 
235 
on the profits of the capitalists should not Le such as have a 
tendency to drive capital away from fruitful employment and 
thereby affect prejudicially capital formation itself. The Tribu· 
nal had applied the correct principles and the award should 
not be disturbed. 
Held, also, that the Tribunal had erred in awarding a 
Jixt:d dearness allowance of Rs. 25!.. The object of dearness 
allowance being to neutralise part of the rise or fall in the cost 
of living, it should ordinarily be on a sliding scale. 
'· 
Held, that the contention of the appellant that in view of 
1he provisions of the Employees' State Insurance Act, 1948, no 
provision need be made about sickness leave at all, was rejected. 
It was pointed out that in providing for periodical payments 
to an insured worker in case of sickness or for medical treatment 
or attendance to him or the members of his family under the 
Act of 1948, the Legislature did not intend to substitute any of 
these benefits for the workmen's rig~t to get leave on full pay 
on the ground of sickness. 
Held, that as regards those workmen to whom the Delhi 
Shops and Establishments Act, 1954. applied, the Tribunal had 
acted illegally in fixing the period of sick leave at 15 days and 
permitting accumulation. The appellant shall allow to the work· 
men to whom the Delhi Shops and Establishments Act applied, 
sickness or casual leave for a tnt ·il period of 12 days with full 
pay and allowances, and such leave shall not accumulate. As 
it was not desirable to . have two separate leave rules for two 
classes of workmen, one to whom the Aot of 1954 applied and 
the other to whom the Act did not apply, it was held that the 
•ame rule should apply to other workers also. 
Held, also, that the scheme of gratuity as framed by the 
tribunal was not unduly favourable to workmen and it also did 
not place any undue strain on the financial resources of the Com· 
pany. As regards the provision in the gratuity scheme that an 
employee who is dismissed for misconduct shall not be entitled 
to any gratuity; it was held that the proper provision should be 
that where an employee is dismissed for misconduct which has 
resulted in financial loss to the employer, the amount of loss 
should be deducted from the amount of gratuity due. 
The award of the Tribunal on the question of retirement 
age was set aside and the retirement age was fixed at 58, subject 
to the proviso that it would be open to the company to conti· 
nue in its employment a workman who had passed that age. 
The rule was to apply to all the employees of the Company. 
1962 
Tht Hindustan T'un~s 
Ltd., New D1lhl 
•. 
Thllr Workn.t 
1962 
TIM Hintf11sta11 TU1111 
ltd., New Del

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