M/S. BRITISH PAINTS (INDIA) LTD. versus ITS WORKMEN

M/S. BRITISH PAINTS (INDIA) LTD. versus ITS WORKMEN

The age of retirement for clerical, subordinate, and factory workmen, whether existing or future, was fixed at 60 years, as improvements in health and longevity justify a higher age; minimum qualifying service for gratuity in voluntary retirement/resignation is to be 10 years to prevent employees from moving between companies after short qualifying periods; gratuity quantum to be paid at 21 days' basic wage or salary for each completed year of service, expressly excluding dearness allowance; the tribunal's award was modified accordingly.

Parties
Appellant/respondent: M/S. British Paints (India) Ltd.; Respondent/appellant: Its Workmen
Jurisdiction
India
Judgment Date
04 November 1965
Procedural Posture
Civil Appeal / Appeal From the Award Dated March 5, 1964, of the Seventh Industrial Tribunal, West Bengal
Outcome
Appeals allowed in part; tribunal's award modified.
Legal Topics
Age of Retirement, Gratuity Scheme, Minimum Qualifying Service, Dearness Allowance Exclusion
Labour Law Age of Retirement Gratuity Scheme Minimum Qualifying Service Dearness Allowance Exclusion

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Parties

M/S. British Paints (India) Ltd.

Appellant/respondent

Its Workmen

Respondent/appellant

Procedural Posture

Civil Appeal / Appeal From the Award Dated March 5, 1964, of the Seventh Industrial Tribunal, West Bengal

Legal Issues

  1. 1 What should be the age of retirement for workmen in the company?
  2. 2 What should be the minimum years of qualifying service for gratuity, and how should its quantum be computed and allowances treated?

Ratio Decidendi

The age of retirement for clerical, subordinate, and factory workmen, whether existing or future, was fixed at 60 years, as improvements in health and longevity justify a higher age; minimum qualifying service for gratuity in voluntary retirement/resignation is to be 10 years to prevent employees from moving between companies after short qualifying periods; gratuity quantum to be paid at 21 days' basic wage or salary for each completed year of service, expressly excluding dearness allowance; the tribunal's award was modified accordingly.

Court Disposition

Appeals allowed in part; tribunal's award modified.

Orders

  • Age of retirement for all workmen fixed at 60 years.
  • Minimum qualifying service for gratuity in cases of voluntary retirement/resignation is 10 years, not 5 years.