WOOLCOMBERS OF INDIA LTD. versus WOOLCOMBERS WORKERS UNION AND ANOTHER

WOOLCOMBERS OF INDIA LTD. versus WOOLCOMBERS WORKERS UNION AND ANOTHER

The Tribunal's award on basic wages and dearness allowance cannot be upheld due to lack of supporting reasons and absence of proper comparison with reasonably similar concerns in the region, as required by the industry-cum-region formula; Tribunal must record a fresh finding based on proper evidence and reasoning.

Parties
Appellant: Woolcombers of India Ltd.; Respondent: Woolcombers Workers Union; Respondent: Issac Holdens Mazdoor Union
Jurisdiction
India
Judgment Date
27 August 1973
Procedural Posture
Civil Appeal / Appeal by Special Leave From the Award of the Industrial Tribunal
Outcome
Remand
Legal Topics
Fixation of Minimum Wage, Industry Cum Region Formula, Dearness Allowance, Quasi Judicial Duty to Give Reasons

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Parties

Woolcombers of India Ltd.

Appellant

Woolcombers Workers Union

Respondent

Issac Holdens Mazdoor Union

Respondent

Procedural Posture

Civil Appeal / Appeal by Special Leave From the Award of the Industrial Tribunal

  1. 1 What is the bare minimum wage and fair wage?
  2. 2 Principles for fixation of basic wages and dearness allowance
  3. 3 Duty of Tribunal to provide reasons for its award

Ratio Decidendi

The Tribunal's award on basic wages and dearness allowance cannot be upheld due to lack of supporting reasons and absence of proper comparison with reasonably similar concerns in the region, as required by the industry-cum-region formula; Tribunal must record a fresh finding based on proper evidence and reasoning.

Court Disposition

Remand

Orders

  • Tribunal directed to record a fresh finding on the quantum of basic wages and dearness allowance by applying the region part of the industry-cum-region formula and in the light of this Court's judgment.
  • Parties allowed to adduce evidence on this limited question.