UNION OF INDIA ANT Vs. DHRANGADHRA CHEMICAL WORKS

JUDGEMENT

(1.) This appeal on certificate is from the judgment of the High Court of Gujarat. The appellants 1 and 2 are respectively the Union of India and the Regional Provident Fund Commissioner. Dhrangadhra Chemical Works Kamdar Sangh (hereinafter to be described as the union) is the first respondent. The second respondent is Dhrangadhra Chemical Works (hereinafter to be described as the employer).

(2.) With respect to the dearness allowance (D. A.) of the workers under the employer there was a reference No. 70/70 before the Industrial Tribunal at Ahmedabad. The parties had arrived at a settlement of the said industrial dispute and an award was passed in terms of the settlement. According to the award the employer was to pay D. A. to its employees at the rate of the quarterly average cost of living index as settled by the Simla Bureau, popularly known as "All India Consumers Price Index" for the relevant quarter. Thus for the months of January, February and March. 1974, the rate of D. A. was on the basis of the average cost of living index for the months of July, August and September 1973 as published by the said Bureau and this was to follow for every quarter. It is the accepted position that for the months of April, May and June 1974 the D. A. worked out at Rs. 78/- per month. but for the quarter commencing on 1st July, 1974, and ending on 30th September, 1974. it worked out at Rs. 88.50 per month. In other words, it was an agreed position between the union and the employer that the rate of D. A. payable to all the workers from 1st July, 1974, was at the rate of Rs. 88.50 per month.

(3.) With effect from 6th July, 1974. the Additional Emoluments (Compulsory Deposit) Ordinance 1974 came into force. This Ordinance was replaced by The Additional Emoluments (Compulsory Deposit) Act 1974 (Act No. 37 of 1974) (briefly the Act) and the Act is deemed to have come into force on the 6th day of July 1974.