COOPER ENGINEERING LIMITED Vs. D M ANEY

JUDGEMENT

(1.) By order, dated January 25, 1969, the State of Maharashtra referred to the Industrial Tribunal, Bombay, for adjudication three disputes between the appellant and its workmen. The said disputes were registered by the Tribunal as Reference (I. T.) No. 42 of 1969, The appellant filed in the Bombay High Court Special Civil Application No. 799 of 1969 under Article 226 of the Constitution to quash the order of reference. The High Court by its judgment and order dated 31st July/1st August, 1969, dismissed the Writ Petition holding that the reference made by the State Government was valid. The appellant has filed the above appeal, by special leave, challenging the decision of the High Court.

(2.) The facts leading up to the filing of the Writ Petition may now be stated. On July 6, 1963, there was a settlement between the appellant and the workmen represented by the Secretaries of two unions - the Chemical Engineering and Metal Workers Union, Poona and the Association of Engineering Workers, Poona. Under clause 1 of this settlement, the appellant, agreed to pay dearness allowance on the basis of 75% neutralisation of the Sholapur Cost of Living Index computed for a month of 26 working days in substitution of the rate of dearness allowance that was then being paid. On July 7, 1964, a charter of demands was submitted by the workmen represented by the General Secretary, Association of Engineering Workers, Poona. The demands related to various items including wage scales and dearness allowance. On April 1, 1965, the appellant and the said Association entered into a settlement. From the said settlement, it is seen that though the company conceded certain demands, it was not agreeable to accede in respect of the wages and dearness allowance, on the ground that the Poona Working Class Consumer Price Index was likely to be introduced at an early date, when a change in the wage pattern and dearness allowance in the region will be effected. Another reason given by the appellant was that the demands, as made by the union, involved heavy financial liability. The Association agreed that all demands made by it on July 7, 1964, in respect of which no settlement has been reached, will be treated as withdrawn for the time being. Liberty was reserved to the Association to raise those demands again after the Poona Working Class Consumer Price Index was declared. With this reservation, came the demand for wage scales, adjustment and dearness allowance.

(3.) On January 23, 1965, the Association, the 2nd respondent, was recognised by the appellant under the code of discipline. In June 1965, the Poona Working Class Consumer Price Index was declared. The second respondent again raised a demand on August 3, 1965, Demand No. 2 related to dearness allowance. The demand was that the then existing Sholapur Working Class Consumer Cost of Living Index Number should be replaced by the Poona Working Class Consumer Cost of Living Index Number and the linking of old and new series, its multiplier and its rate should be jointly decided between the management and the Association. The Association further required that after such a decision, the workmen should be given 100% neutralisation of the Poona Index.