MANAGEMENT, GHAZIABAD ENGINEERING CO (P) LTD. versus ITS WORKMEN

MANAGEMENT, GHAZIABAD ENGINEERING CO (P) LTD. versus ITS WORKMEN

In the absence of evidence or precedent justifying a departure, gratuity shall be related to basic wage (excluding dearness allowance and other benefits), not consolidated wage. Tribunal's finding regarding the company's sound financial position stands, and the scheme is to be modified accordingly.

Parties
Appellant: Ghaziabad Engineering Co. (P) Ltd.; Respondent: Its Workmen
Jurisdiction
India
Judgment Date
18 July 1969
Procedural Posture
Civil Appeal / Supreme Court Appellate Judgment Under Article 136 by Special Leave
Outcome
Scheme modified; appeal dismissed.
Legal Topics
Gratuity Schemes, Dearness Allowance, Industrial Disputes, Tribunal Findings, Article 136 Interference
Labour Law Industrial Law Gratuity Schemes Dearness Allowance Industrial Disputes Tribunal Findings Article 136 Interference

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Parties

Ghaziabad Engineering Co. (P) Ltd.

Appellant

Its Workmen

Respondent

Procedural Posture

Civil Appeal / Supreme Court Appellate Judgment Under Article 136 by Special Leave

Legal Issues

  1. 1 Whether gratuity payable should be related to basic wage or consolidated wage inclusive of dearness allowance
  2. 2 Whether Tribunal was justified in awarding dearness allowance at a flat rate
  3. 3 Court's jurisdiction to interfere with Tribunal findings under Article 136

Ratio Decidendi

In the absence of evidence or precedent justifying a departure, gratuity shall be related to basic wage (excluding dearness allowance and other benefits), not consolidated wage. Tribunal's finding regarding the company's sound financial position stands, and the scheme is to be modified accordingly.

Court Disposition

Scheme modified; appeal dismissed.

Orders

  • The word 'wages' in the scheme shall mean basic salary or emoluments excluding dearness allowance and other allowances and benefits payable to the workman which he had last drawn.
  • No order as to costs in the appeal.