INDIAN LINK CHAIN MANUFACTURES LTD. versus THEIR WORKMEN

INDIAN LINK CHAIN MANUFACTURES LTD. versus THEIR WORKMEN

The Tribunal’s award was partly modified: the settlement was validly terminated and reference to the Tribunal was competent, bonus should be computed according to figures from income-tax assessment, wage fitment must account for length of service, consolidated wage may be used as basic wage for gratuity, and the scheme was fair and reasonable.

Parties
Appellant: Indian Link Chain Manufactures Ltd.; Respondent: Their Workmen
Jurisdiction
India
Judgment Date
17 September 1971
Procedural Posture
Civil Appeal / Appeal by Special Leave
Outcome
Appeals partly allowed, award modified
Legal Topics
Settlement Termination, Consolidated Wages, Dearness Allowance, Bonus Computation, Return on Reserves, Gratuity Scheme, Industrial Dispute
Labour Law Industrial Law Settlement Termination Consolidated Wages Dearness Allowance Bonus Computation Return on Reserves Gratuity Scheme +1 more

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Parties

Indian Link Chain Manufactures Ltd.

Appellant

Their Workmen

Respondent

Procedural Posture

Civil Appeal / Appeal by Special Leave

Legal Issues

  1. 1 Whether the settlement dated April 5, 1963 continued to subsist for lack of notice under s.19(2) of the Industrial Disputes Act, 1947 and whether the reference to Tribunal was incompetent
  2. 2 Whether the Tribunal was correct in fixing consolidated wages without linking dearness allowance with cost of living or granting adjustments
  3. 3 Whether Tribunal was justified in taking figures of depreciation and development rebate from the balance sheet and not from income-tax assessment orders

Ratio Decidendi

The Tribunal’s award was partly modified: the settlement was validly terminated and reference to the Tribunal was competent, bonus should be computed according to figures from income-tax assessment, wage fitment must account for length of service, consolidated wage may be used as basic wage for gratuity, and the scheme was fair and reasonable.

Court Disposition

Appeals partly allowed, award modified

Orders

  • Payment of bonus of Rs. 20,768.50 instead of Rs. 42,783
  • Fitment of wages in new scales after accounting for one increment for every three years of completed service up to 15th January 1966