WORKMEN OF VOLTAS LIMITED Vs. VOLTAS LIMITED

JUDGEMENT

(1.) This appeal by special leave against the award dated October 16, 1967 of the Additional Industrial Tribunal, Bangalore is restricted to the following three grounds:

(2.) The main contention raised on behalf on the appellants in this Court is that there was no existing scheme of Dearness Allowance fixing the maximum ceiling applicable to the employees under Bangalore branch of Messrs. Voltas Ltd. and, therefore there could be no question of the revision of any ceiling on Dearness Allowance payable to such employees. The circular dated March 12, 1959 on which reliance is placed by Shri Pai in support of the claim that there is ceiling on the maximum Dearness Allowance applicable to all offices of the respondent in India is, according to Shri Tarkunde, inapplicable to Bangalore. That circular reads:

(3.) According to Shri Tarkunde's general submission there can be no ceiling on dearness Allowance as Dearness Allowance is linked with the cost of living and price index with the result that since there can be no question of ceiling on the cost of living or the prices, it is futile to speak of ceiling on Dearness Allowance. The object of Dearness Allowance scheme, it is emphasised in this connection, is to neutralise the rise in the cost of living and, therefore, the two cannot be delinked. Shri Tarkunde has further contended that assuming there was a scheme fixing maximum ceiling on Dearness Allowance applicable to the Bangalore branch, no notice of change in the terms of the scheme was given as contemplated by Rule 34 of the Industrial Disputes (Central) Rules, 1957. In the absence of such notice, the change, according to the submission is invalid and unenforceable. The question of fixation maximum Dearness Allowance is the main grievance of the appellant-Workmen, says Shri Tarkunde.