WORKMEN EMPLOYED BY INDIAN OXYGEN LTD. versus INDIAN OXYGEN LTD.

WORKMEN EMPLOYED BY INDIAN OXYGEN LTD. versus INDIAN OXYGEN LTD.

Dearness allowance for Kanpur unit workmen should be linked to all-India consumer price index (1960=100) for Kanpur, compiled by Labour Bureau, Simla, with application of the conversion (linking) factor of 4.83; uniformity based on all-India average index is inappropriate and settlement with Shramik Sangh was collusive and not a valid basis for revision.

Parties
Appellant: Workmen employed by Indian Oxygen Ltd.; Respondent: Indian Oxygen Ltd.
Jurisdiction
India
Judgment Date
02 May 1985
Procedural Posture
Civil Appeal / Final Decision on Appeal Against Industrial Tribunal Award
Outcome
Appeal partly allowed
Legal Topics
Dearness Allowance, Industrial Disputes, Industry Cum Region Principle, Settlement Validity, Cost of Living Index
Labour and Services Dearness Allowance Industrial Disputes Industry Cum Region Principle Settlement Validity Cost of Living Index

Case Brief

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Parties

Workmen employed by Indian Oxygen Ltd.

Appellant

Indian Oxygen Ltd.

Respondent

Procedural Posture

Civil Appeal / Final Decision on Appeal Against Industrial Tribunal Award

Legal Issues

  1. 1 Should dearness allowance for Kanpur unit workmen be revised and linked to consumer price index for Kanpur?
  2. 2 Is uniformity in dearness allowance for different units valid under equality principles?
  3. 3 Was the settlement between management and Shramik Sangh a proper basis for revision of dearness allowance formula?

Ratio Decidendi

Dearness allowance for Kanpur unit workmen should be linked to all-India consumer price index (1960=100) for Kanpur, compiled by Labour Bureau, Simla, with application of the conversion (linking) factor of 4.83; uniformity based on all-India average index is inappropriate and settlement with Shramik Sangh was collusive and not a valid basis for revision.

Court Disposition

Appeal partly allowed

Orders

  • Award of Industrial Tribunal modified: dearness allowance for Kanpur unit workmen to be paid according to all-India consumer price index number for Kanpur (1960=100), compiled by Labour Bureau, Simla, after applying conversion factor of 4.83.
  • All other respects of the award, including enforceability date, remain unaltered except for the modification.