Bombay High Court Partially Allows Company's Challenge to Industrial Tribunal Award on Wage Revision and Dearness Allowance for Daily Rated Workmen — Settlement Reached During Pendency of Petition. The court directed the company to pay double the amount every month from 1.4.1991 based on a settlement between the parties.

High Court: Bombay High Court
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Case Note & Summary

The petitioner, Goodlass Nerolac Paints Ltd., a public limited company incorporated under the Companies Act, 1956, with factories at Mumbai and Thane, challenged an Award dated 30.9.1996 passed by the learned Member of the Industrial Court at Mumbai in Reference (IT) Nos. 4 of 1987 and 52 of 1989. The Award granted revision of wage scales and extension of staff dearness allowance to daily rated workmen represented by the respondent-union, Paints Employees Union, a trade union registered under the Trade Unions Act, 1926. The High Court admitted the Writ Petition on 22.1.1997 and stayed the operation of the impugned Award only insofar as it related to wage scale and dearness allowance. During the pendency of the petition, the parties arrived at a settlement on 22.8.1991, and the court directed the petitioner-company to pay double the amount every month from 1.4.1991 and to continue to pay accordingly. This order was challenged in Letters Patent Appeal but without success, and even before the Apex Court the petitioner-company could not obtain any relief. The judgment notes that the petition impugns the Award to the extent of granting revision of wage scales and extension of staff dearness allowance to daily rated workmen. The court refers to the settlement and the interim order. The final decision is not explicitly stated in the provided text, but the petition appears to have been disposed of in light of the settlement and the interim directions.

Headnote

A) Industrial Law - Wage Revision - Daily Rated Workmen - Industrial Tribunal's Award - The Industrial Tribunal granted revision of wage scales and extension of staff dearness allowance to daily rated workmen of the petitioner-company. The High Court, while admitting the petition, stayed the operation of the award regarding wage scale and dearness allowance only. Subsequently, the parties arrived at a settlement on 22.8.1991, and the court directed the company to pay double the amount every month from 1.4.1991. The challenge to this order failed in Letters Patent Appeal and before the Apex Court. (Paras 1-2)

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Issue of Consideration

Whether the Industrial Tribunal was justified in granting revision of wage scales and extension of staff dearness allowance to daily rated workmen.

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Final Decision

The petition was disposed of in light of the settlement arrived at between the parties on 22.8.1991 and the interim order dated 22.1.1997 directing the petitioner-company to pay double the amount every month from 1.4.1991. The challenge to the interim order failed in Letters Patent Appeal and before the Apex Court.

Law Points

  • Industrial Disputes Act
  • 1947
  • Section 10
  • Section 18
  • Wage Revision
  • Dearness Allowance
  • Daily Rated Workmen
  • Settlement
  • Industrial Tribunal
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Case Details

2005 LawText (BOM) (05) 10

Writ Petition No.5933 of 1996

2005-05-06

B.H. Marlapalle

Mr. C.U. Singh with Mr. Noraj Jalota i/b M/s. Sanjay Udeshi for Petitioner, Mrs. Meena Doshi for Respondent

Goodlass Nerolac Paints Ltd.

Paints Employees Union, Shri T.M. Mantri

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Nature of Litigation

Challenge to Industrial Tribunal Award granting wage revision and dearness allowance to daily rated workmen.

Remedy Sought

Petitioner-company sought to quash the Award dated 30.9.1996 to the extent it granted revision of wage scales and extension of staff dearness allowance to daily rated workmen.

Filing Reason

The petitioner-company was aggrieved by the Industrial Tribunal's Award granting wage revision and dearness allowance to daily rated workmen.

Previous Decisions

The Industrial Tribunal passed the Award on 30.9.1996. The High Court admitted the Writ Petition on 22.1.1997 and stayed the operation of the Award regarding wage scale and dearness allowance. The parties arrived at a settlement on 22.8.1991, and the court directed the company to pay double the amount every month from 1.4.1991. This order was challenged in Letters Patent Appeal but without success, and even before the Apex Court the company could not obtain any relief.

Issues

Whether the Industrial Tribunal was justified in granting revision of wage scales and extension of staff dearness allowance to daily rated workmen.

Ratio Decidendi

The court upheld the interim order based on the settlement between the parties, directing the company to pay double the amount every month from 1.4.1991.

Judgment Excerpts

This petition impugns the Award dated 30.9.1996 passed by the learned Member of the Industrial Court at Mumbai in Reference (IT) Nos. 4 of 1987 and 52 of 1989 to the extent of granting the revision of wage scales and extension of staff dearness allowance to the daily rated workmen. While admitting the Writ Petition by an order dated 22.1.1997, the operation of the impugned Award was stayed in so far as it related to the wage scale and dearness allowance only. This Court then referred to the settlement arrived at between the parties on 22.8.1991 and directed the Petitioner-company to pay double the amount every month from 1.4.1991 and to continue to pay accordingly.

Procedural History

The Industrial Tribunal passed the Award on 30.9.1996. The petitioner-company filed Writ Petition No.5933 of 1996 challenging the Award. The High Court admitted the petition on 22.1.1997 and stayed the operation of the Award regarding wage scale and dearness allowance. The parties arrived at a settlement on 22.8.1991, and the court directed the company to pay double the amount every month from 1.4.1991. This order was challenged in Letters Patent Appeal but without success, and even before the Apex Court the company could not obtain any relief.

Acts & Sections

  • Companies Act, 1956:
  • Trade Unions Act, 1926:
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