CINEMA THEATRES Vs. THEIR WORKMEN

JUDGEMENT

(1.) THIS appeal by special leave arises out of an award of the industrial tribunal, Delhi. A dispute between 34 cinemas and their employees was referred for adjudication to the tribunal embracing a number of questions. In the Present appeal, however, we are only concerned with three matters :

(2.) THE case of the workmen-respondents was that pay-scale and dearness allowance had been fixed as far back as 1951 and required upward revision. The workmen also claimed that the provision for leave and holidays required liberalization. The appellants contended that there was no proof of any material change in the circumstances since 1951 and therefore there was also a dispute between the parties whether the cinemas should be classified into three classes or into two. As to leave and holidays, the appellants claimed that no case had been made out for any change.

(3.) TURNING now to the question of classification of the cinemas, the tribunal has classified them into two classes. The classification is based on gross revenue, and the dividing line fixed by the tribunal is at rupees four lakhs. Cinemas with gross revenue of rupees four lakhs and above have been put in class A, whereas cinemas with gross revenue of below rupees four lakhs have been put in class B. It has not been disputed that the cinemas had to be divided into classes, for the appellants' case was also that they should he divided into classes, though they urged that the classes should be three in number and not two, as contended for by the respondents. Further we are of opinion that the criterion of gross revenue taken by the tribunal as the basis of classification appears to be a satisfactory criterion. Even the appellants' case was that classification should be made on the basis of gross revenue, though what they meant by gross revenue was somewhat different from what the tribunal has taken as the gross revenue. According to the tribunal the gross revenue meant the total receipts of a cinema without any deduction whatsoever. The appellants however contended that gross revenue should be calculated after deducting entertainment tax and distributor's share of the receipts. There is no doubt that total receipts of a cinema include entertainment tax as well as what is paid by the exhibitors (namely, the cinema) to the distributor as a charge for exhibiting a film. The appellants therefore wanted that gross revenue should be calculated after deducting entertainment tax and distributor's share from the total receipts and thereafter cinemas should be classified into three classes, namely -(i) those with gross revenue so calculated of less than rupees one lakh,