AMRITSAR RA YON & SILK MILLS versus THEIR WORKMEN

AMRITSAR RA YON & SILK MILLS versus THEIR WORKMEN

The Tribunal was justified in framing a gratuity scheme given the financial position of the appellant. While the prescribed rate of gratuity (one month's basic wages for each year of service) was not fundamentally out of line with other schemes in the region, a ceiling of 15 months' basic wages should be imposed. Other details of the award remain unchanged.

Parties
Appellant: Amritsar Rayon & Silk Mills; Respondent: Their Workmen
Jurisdiction
India
Judgment Date
02 August 1962
Procedural Posture
Civil Appeal / Appeal by Special Leave From the Award Dated November 6, 1960, of the Industrial Tribunal, Punjab, in Reference No. 43 of 1958.
Outcome
Award modified.
Legal Topics
Industrial Disputes, Gratuity Scheme, Industrial Tribunal Award
Labour Law Industrial Disputes Gratuity Scheme Industrial Tribunal Award

Case Brief

Summary, issues, holding and outcome

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Parties

Amritsar Rayon & Silk Mills

Appellant

Their Workmen

Respondent

Procedural Posture

Civil Appeal / Appeal by Special Leave From the Award Dated November 6, 1960, of the Industrial Tribunal, Punjab, in Reference No. 43 of 1958.

Legal Issues

  1. 1 Whether a gratuity scheme should be framed for the employees.
  2. 2 Whether a ceiling should be placed on the amount of gratuity payable under the scheme.
  3. 3 Whether the rate of one month's basic wages per year of service is justified or excessive.

Ratio Decidendi

The Tribunal was justified in framing a gratuity scheme given the financial position of the appellant. While the prescribed rate of gratuity (one month's basic wages for each year of service) was not fundamentally out of line with other schemes in the region, a ceiling of 15 months' basic wages should be imposed. Other details of the award remain unchanged.

Court Disposition

Award modified.

Orders

  • A ceiling of 15 months' basic wages is to be imposed on the total gratuity payable under the scheme.
  • The rest of the award is confirmed.