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Workmen vs Balmer Lawrie & Co. Ltd., Bombay

Supreme Court29 October 1979A.D. Koshal · R.S. Pathak · V.R. Krishna Iyer

Ratio decidendi

The rule this decision rests on

In adjudicating an industrial dispute concerning dearness allowance, the court may, having regard to the financial capability of the management, the burden of increased payments, and the terms of any settlement between the parties, award a lumpsum amount in place of a specific rate of dearness allowance, to be distributed among workmen collectively according to a formula to be determined by their union, rather than directing payment at a particular rate per employee. Where a lumpsum award is made to cover arrears of dearness allowance and related liabilities for a specified past period, statutory liabilities arising from the consequential increase in emoluments fall outside and are not included in that lumpsum, remaining the separate obligation of the employer.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

JUDGMENT
V.R. Krishna Iyer, J.

1. We have heard Counsel on the narrow point of dispute between the management and the workmen on the question of additional D.A. which was the subject matter of this appeal. We have taken due note of the burden that might be cast if any increased rate of D.A. were to be directed to be paid. We have also had regard to the financial capability of the management. As a result of all these and in the light of the various figures, supplied to us by Counsel, we think that the fairest course in the present situation, with special reference to the latter settlement between the parties, is to direct that a lumpsum of Rs. 6,00,000/-, less any amount, that might have been paid by the management towards increased in dearness allowance under the settlement dated 8-8-1979, over and above what has been awarded by the Tribunal and paid as D.A., will be payable to all the workmen together in their collectivity. This will cover the liability of the management towards D.A. and overtime for the period 1-7-71 to 31-12-1977. There will be no more liability on the part of the management, on the score of the Industrial dispute and consequential payments to the workmen by way of production bonus or overtime the sum so paid will be distributed by the company among the various classes of workmen and individual workmen, on a suitable formula to be worked out by the Union, to the satisfaction of the body of workmen. This shall be done within two months of the formula being presented by the Union. The statutory liabilities that may be incurred by the management, on account of this extra payment towards D.A. and consequential increase in the emoluments, will be outside this sum of Rs. 6,00,000/-, and is not included in this sum. We consider that this is a just adjustment of the dispute and quite reasonable in the circumstances of the case. With this direction, we dispose of the appeal. The Management, however, will pay the costs of the workmen, quantified at a sum of Rs. 5,000/-. For the period 1-1-1978 onwards, the settlement already reached between the parties will govern their relationship and Counsel of both sides agree to this course.

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