RAZA BULAND SUGAR COMPANY LIMITED Vs. THEIR WORKMEN

JUDGEMENT

(1.) This appeal, by special leave, is directed against the Award dated August 7, 1967 in adjudication case No.47 of 1966 of the Industrial Tribunal (II) Lucknow, holding that the action of the appellant in withdrawing the scheme of payment of premium to their workmen is illegal and unjustified except in respect of certain classes of workmen.

(2.) There were two public limited companies, Raza Sugar Company Ltd., and Buland Sugar Company Ltd. having their registered office at Rampur. Each Company had one sugar factory at Rampur in close proximity. These companies and factories were under the common management of M/s. Goyan Bros. (Rampur) Private Ltd. In 1957 these two companies were amalgamated and a new company named Raza Buland Sugar Company Ltd. was formed. In spite of the said amalgamation the two factories functioned separately. In 1964-65 the Buland Sugar Factory was dismantled and removed to the premises of Raza Sugar Factory and thus both the factories became integrated. The original daily crushing capacity of Raza Sugar Factory and Buland Sugar Factory was about 1130 and 1193 M. Tons respectively. The total crushing capacity originally of the two factories was 2323 M. Tons. After the integration of both the factories into one unit, the daily crushing capacity was increased to 3000 M. Tons. The integrated unit worked for the first time in the crushing season of 1965-66. At this stage it may be mentioned that the two factories had from about 1946 an incentive scheme known as "premium", details of which had been given at page 353 in Appendix 69 of the Report of the Central Wage Board of Sugar Industry. There is no controversy that the companies were paying the premium to all its workmen according to this scheme from 1946 to 1965.

(3.) By notice dated November 16/17, 1965 the appellant withdrew the Incentive Scheme, in consequence of which an industrial dispute arose between the appellant and its workmen. The State of Uttar Pradesh by its order dated November 10, 1966 referred for adjudication to the concerned Industrial Tribunal the question: