UNICHEM LABORATORIES LTD. versus THE WORKMEN

UNICHEM LABORATORIES LTD. versus THE WORKMEN

The Tribunal's award relating to dearness allowance, wage fixation, classification of grades, gratuity, and incentive bonus was justified. Depreciation reserves are not deducted from profits for wage calculations, foreign collaboration companies can be treated as comparable units for wage fixation if relevant tests are satisfied; Tribunal's adoption of uniform slab system for dearness allowance is supported by industry practice and law, and revision of wage scales and DA is warranted by sharp rise in cost of living index.

Parties
Appellant: Unichem Laboratories Ltd.; Respondent: The Workmen; Respondent: Respondent No. 2 (Unnamed)
Jurisdiction
India
Judgment Date
24 February 1972
Procedural Posture
Civil Appeal / Appeals Against Industrial Tribunal Award
Outcome
Appeals dismissed; Tribunal award confirmed.
Legal Topics
Dearness Allowance, Depreciation Reserve Deduction, Foreign Company Comparability, Wage Fixation, Gratuity, Incentive Bonus Scheme, Industrial Adjudication
Labour and Industrial Law Dearness Allowance Depreciation Reserve Deduction Foreign Company Comparability Wage Fixation Gratuity Incentive Bonus Scheme Industrial Adjudication

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Parties

Unichem Laboratories Ltd.

Appellant

The Workmen

Respondent

Respondent No. 2 (Unnamed)

Respondent

Procedural Posture

Civil Appeal / Appeals Against Industrial Tribunal Award

Legal Issues

  1. 1 Whether depreciation reserves should be deducted from profits for wage calculations
  2. 2 Whether companies with foreign collaboration can be treated as comparable units for wage fixation
  3. 3 Justification for wage scale and grade classification by Tribunal

Ratio Decidendi

The Tribunal's award relating to dearness allowance, wage fixation, classification of grades, gratuity, and incentive bonus was justified. Depreciation reserves are not deducted from profits for wage calculations, foreign collaboration companies can be treated as comparable units for wage fixation if relevant tests are satisfied; Tribunal's adoption of uniform slab system for dearness allowance is supported by industry practice and law, and revision of wage scales and DA is warranted by sharp rise in cost of living index.

Court Disposition

Appeals dismissed; Tribunal award confirmed.

Orders

  • Appellant to pay respondent's costs in Civil Appeal No. 1091 of 1971.
  • Appellant given three months from judgment date for payment of award amounts.