Supreme Court Sets Aside Tribunal Award on Special Allowance for Bank Employees — Remits for Fresh Consideration. The Tribunal's failure to properly adjudicate the nature of duties and entitlement under the Bi-partite Settlement necessitated a remand for detailed examination.

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Case Note & Summary

The case involved an appeal by the Bank of India against an award made by the Industrial Tribunal, Kanpur, regarding the entitlement of bank staff to a special allowance for their duties at various clearing houses. The Tribunal had determined that the workmen were entitled to this allowance based on their responsibilities at the clearing houses in Lucknow, Agra, Unnao, Varanasi, and Kanpur. The workmen claimed they performed duties as authorized representatives of the bank, which included checking and scrutinizing cheques and other instruments, preparing vouchers, and ensuring the correctness of endorsements and stamps. The bank contested this claim, arguing that the work performed was purely clerical and did not warrant a special allowance. The Tribunal, after reviewing the evidence, awarded the special allowance without adequately examining the nature of the work performed by the employees. The Supreme Court found that the Tribunal had not properly adjudicated the duties of the workmen in relation to the Bi-partite Settlement and previous awards, particularly the Sastry and Desai Awards. The Court emphasized the need for a detailed examination of the specific duties to determine if the workmen were entitled to the special allowance. Consequently, the Supreme Court set aside the Tribunal's award and remitted the matter for fresh consideration, directing that the Tribunal must assess the duties assigned to each workman in light of the applicable legal framework. The appeal was allowed with no costs.

Headnote

A) Industrial Law - Special Allowance - Entitlement of Workmen - Industrial Disputes Act, 1947, Section 10 - The Tribunal awarded special allowance to workmen based on their duties at clearing houses, but the Supreme Court found that the Tribunal failed to properly adjudicate the nature of duties and their entitlement under the Bi-partite Settlement and previous awards. The matter was remitted for fresh consideration to ensure proper examination of the facts and duties involved. Held that the Tribunal must assess the specific duties to determine entitlement (Paras 1-5).

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Issue of Consideration

Whether the action of the management of Bank of India in not paying special allowance to the staff posted at clearing house was justified.

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Final Decision

The Supreme Court set aside the Tribunal's award and remitted the matter for fresh consideration, emphasizing the need for a detailed examination of the specific duties of the workmen in relation to the Bi-partite Settlement and previous awards.

Law Points

  • Industrial Disputes
  • Special Allowance
  • Duties of Employees
  • Bi-partite Settlement
  • Tribunal Jurisdiction
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Case Details

2001 LawText (SC) (04) 6

Appeal (civil) 8569 of 1997

2001-04-09

S. Rajendra Babu, Shivaraj V. Patil

Bank of India

Secretary, Bank of India Staff Union & Anr.

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Nature of Litigation

Appeal against an award made by the Industrial Tribunal regarding special allowance for bank staff.

Remedy Sought

The Bank of India sought to challenge the Tribunal's award granting special allowance to its employees.

Filing Reason

The Tribunal awarded special allowance based on the workmen's claims regarding their duties at clearing houses.

Previous Decisions

The Tribunal's decision was based on the workmen's claims and affidavits, but lacked a thorough examination of the duties involved.

Issues

Whether the workmen were entitled to special allowance based on their duties. Whether the Tribunal properly adjudicated the nature of the work performed by the employees.

Submissions/Arguments

The workmen argued that their duties warranted a special allowance due to the responsibilities involved. The Bank contended that the work performed was clerical and did not meet the criteria for special allowance.

Ratio Decidendi

The Tribunal must properly assess the nature of duties performed by the workmen to determine entitlement to special allowance under the applicable legal framework.

Judgment Excerpts

The Tribunal held that the concerned workmen are entitled for special assistant allowance for the number of days they have worked. The Tribunal has proceeded as if it was dealing with a fresh matter before it without reference either to the Bi-partite Settlement or to the Sastry or the Desai Award.

Procedural History

The appeal was filed against the award of the Industrial Tribunal, Kanpur, which granted special allowance to the workmen based on their claims regarding duties performed at clearing houses.

Acts & Sections

  • Industrial Disputes Act, 1947: Section 10
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