CALCUTTA INSURANCE CO. LTD. versus THEIR WORKMEN

CALCUTTA INSURANCE CO. LTD. versus THEIR WORKMEN

Tribunal's award adjusting workmen into new pay scales based on length of service was justified given low previous scales and company's improved financial capacity; privilege leave should be 30 days per year accumulated up to 60 days and sick leave at 15 days per year accumulated up to three months; gratuity qualifying period in case of resignation and retirement raised to ten years, and for dismissal due to misconduct to fifteen years, allowing company to offset losses from gratuity in cases of misconduct.

Parties
Appellant: Calcutta Insurance Co. Ltd.; Respondent: Their Workmen
Jurisdiction
India
Judgment Date
06 February 1967
Procedural Posture
Civil Appeal / Appeal by Special Leave From the Award Dated April 25, 1964 of the Central Government Industrial Tribunal, Dhanbad
Outcome
Award modified
Legal Topics
Industrial Disputes, Revision of Pay Scales, Dearness Allowance, Gratuity, Privilege Leave, Sick Leave
Industrial Law Labour Law Industrial Disputes Revision of Pay Scales Dearness Allowance Gratuity Privilege Leave Sick Leave

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Parties

Calcutta Insurance Co. Ltd.

Appellant

Their Workmen

Respondent

Procedural Posture

Civil Appeal / Appeal by Special Leave From the Award Dated April 25, 1964 of the Central Government Industrial Tribunal, Dhanbad

Legal Issues

  1. 1 Adjustment of employees in revised pay scales based on length of service
  2. 2 Revised provision for gratuity and qualifying periods
  3. 3 Determination of privilege and sick leave rules beyond statutory minimums

Ratio Decidendi

Tribunal's award adjusting workmen into new pay scales based on length of service was justified given low previous scales and company's improved financial capacity; privilege leave should be 30 days per year accumulated up to 60 days and sick leave at 15 days per year accumulated up to three months; gratuity qualifying period in case of resignation and retirement raised to ten years, and for dismissal due to misconduct to fifteen years, allowing company to offset losses from gratuity in cases of misconduct.

Court Disposition

Award modified

Orders

  • Privilege leave to be allowed at the rate of 30 days per completed year of service, with accumulation up to 60 days.
  • Sick leave at the rate of 15 days per year with full pay, with accumulation up to three months.