WORKMEN OF SHRI BAJRANG JUTE MILLS LTD. versus EMPLOYERS OF SHRI BAJRANG JUTE MILLS LTD.

Citation: [1969] 2 S.C.R. 593 · Decided: 31-10-1968 · Supreme Court of India · Bench: J.M. SHELAT · Disposal: Dismissed

Cited by 1 judgment(s) · cites 1 · see the full citation network in Lexace

Judgment (excerpt)

.... 
593 
A 
WORKMEN OF SHRI BAJRANG JUTE MILLS LTD. 
v. 
EMPLOYERS OF SHRI BAJRANG JUTE MILLS LTD. 
October 31, 1968 
B 
[J. M. SHELAT, V. BHARGAVA AND C. A. VAIDIALINGAM, JJ.] 
c 
D 
E 
F 
G 
H 
Wage Scale-Determination-Jndustry-cum-region basis-Wage Board 
fixing uniform wage scale irrespective of differing conditions in different 
region~Validity-Region}vise classrfication, necessity of. 
The Central Wage Board was constituted for devising a wage structure, 
based on the principle of fair wages payable 
in the Jute industry. 
In 
determining the financial capacity of the industry the Board selected 20 
mills from West Bengal and 9 mills from the rest of the region as re-
presenting a cross-section of the Industry. The 
respondent, a 
fairly 
small mill in Andhra Pradesh, was considered as a comparable unit with 
two larger mills in the State as also with some of the very big and pros-
perous mills in West Bengal. The Management of the mill refused 
to 
accede to the demand of the workmen to pay wages in accordance with 
the recommendations of the Board fixing a uniform scale fur the entire 
industry, on the plea tfrat the mill had no financial capacity to bear the 
burden of the wage scale. The dispute was referred to the Industrial 
Tribunal. The Tribunal upheld the claim of the management. In appeal 
to this Court it was contended that the Wage Board rec<immendations 
did follow the principles laid down by this Court in the matter of fixation 
of wages and as such the Tribunal should have implemented its recom-
mendations. 
HELD : Dismissing the appeal. 
The essential 
pre-requisite of 
deciding the 
wage 
structure viz., 
to consider the capacity of the industry to pay on the 
principles laid 
down by this Court was absent in the recommendation of the Wage Board. 
This Court has laid down that the capacity of the industry to pay should 
be gauged on an industry-<:um-region 
basis after taking a 
fair 
cross-
section of the industry and that the cross-section to be truly representative 
and capable of giving a true picture of the conditions of both industry 
and labour must be one from each region where establishments of the 
industry in question are situate. [608 E-F] 
In the present case taking 20 mills from West Bengal and 9 mills 
from outside as forming a representative cross-section was manifestly in~ 
correct as the West Bengal mills could not be said to be, comparable units 
with the rest of the mills. These mills so clubbed together could n.ot re-
flect the economic and other conditions prevailing in the mills in different 
regions with their peculiar problems and differing conditions. 
The Board 
ought to have considered the units in each area separately and determined 
the wage scales for each such area by taking from that area a represen-
tative cross-section of the industry where possible or where that was -not 
possible by taking comparable units from other industries within that area. 
f608 G-Hl 
Express Newspapers Ltd. v. Union of India, [1959) S.C.R. 12, French 
Motor Car Co. v. Workmen, [1963] Supp. 2 S.C.R. 16 and 
Greaves 
CoMon & Co. v. Workmen, [1964] 5 S.C.R. 362, followed. 
594 
SUPREME COURT REPORTS 
[1969] 2 S.C.R. 
If the wage-scale had been determined by the Board in the manner 
A 
aforesaid, even though the Board was not a statutory body 
and its 
decisions were only of a recommendatory character, it would be possible 
for Industrial Tribunal to give due weight to its recommendations as 
such recommendations would have been in conformity with the principle 
of industry-cum-region, a principle binding on the tribunals. [609 HJ 
[The difficulty felt by the Tribunal faced with the dilemma whether or 
B 
not to follow the recommendations of the Wage Board arrived at on 
principles different from those consistently followed in industrial adjudi-
cation should have been realised by the Government before accepting 
the recommendations of the Wage Board.] [609 F-G] 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 923 of 
1966. 
. 
. 
1 
• 
·~1 
Appeal by special leave from the Award dated May 29, 1965 
of the Industrial Tribunal, Andhra Pradesh in I.D. No. 12 of 
1964. 
M. K. Ramamurthi, Shyama/a Pappu and Vineet Kumar, for 
the appellants. 
K. Srinivasamurthy, Naunit Lal and B. P. Singh, for the res-
pondents. 
The Judgment of the Court was delivered by 
c 
D 
Vaidialingam, J. The workmen of Shri Bajrang Jute Mills 
Lid., in this appeal by special leave, attack the correctness of the 
awar

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