CALCUTTA INSURANCE LIMITED Vs. WORKMEN

JUDGEMENT

(1.) THE following Judgment of the court was delivered by

(2.) THIS is an appeal by special leave from the award of the Industrial tribunal, Dhanbad dated 25/04/1964. No less than 13 issues were referred to the tribunal under s. 10(1)(d) of the Industrial Disputes Act, 1947 for adjudication. Before this court, however, the company which has come up in appeal limited its -grievance against the award on only a very few of them. These -are <FRM>JUDGEMENT_1286_AIR(SC)_1967Html1.htm</FRM>

(3.) THE company had, at all material times, about 60 workmen employed at the registered office at Calcutta and its branches at Delhi, Madras, Kanpur, Meerut and Dhubri. Besides this, the -company also had 100 persons 'described as field staff. In 1957 there were in existence certain grades and scales of pay for different categories of employees at the head office and branch offices. THE employees were also getting some dearness allowance as also bonus at the rate of one month's basic wage at the time of the Durga Pooja festival. THE field staff had no pay scale. As soon as the .company engaged itself in exclusive general insurance business and its prospects seemed to brighten up, the employees presented a charter of demands. Ultimately the company and its workmen entered into an agreement on 29/04/1958 which was to be in force for five years commencing from Janu 1/01/1958. THE employees were divided into two categories, viz., (1) filing assistants and substaff and (2) assistants. THE scales of the former were to be Rs. 20-2-32-3-50 EB-5-75 while, that of the latter was Rs. 55-5-757/8-150-FB-10-200-EB-15-305. THEre was to be no adjustment in salary for fitting in the grade. THE sub-staff were to be paid dearness allowance at Rs. 38.00 p.m. at a flat rate; filing assistants were to be paid dearness allowance at Rs. 37.00 p.m. and assistants at Rs. 55.00 p.m. THE bonus was to remain as before as was the case with provident fund. THE agreement provided for gratuity as follows 'Gratuity shall be payable where (a) an employee who has been in continuous service for not less than 15 years, and (i) his services are terminated for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action; or (ii) he voluntarily resigns from the service. (b) An employee (i) dies while he is in service, or (ii) retires from service on his reaching superannuation, or (iii) his services are terminated as a measure of retrenchment or consequent on the abolition of his post; THE employee or his heirs, as the case may be, shall be paid on such termination, retrenchment, resignation or death gratuity which shall be equivalent to one month's basic pay for every completed year of service or any part thereof in excess of six months subject to a maximum of fifteen months' basic pay........ THE leave rules were to be left as before. THEre was an attempt at conciliation which however came to nothing and ultimately the matter was referred to the Industrial tribunal. THE tribunal after taking evidence, both oral and documentary, and referring to the accounts of the company from 1958 to 1962 concluded that the company was making profit at least since 1961 and was in a prosperous condition with the capacity to bear additional financial liability if the pay scales and other demands of the union were allowed to some reasonable extent. As regards the pay scales and dearness allowance, the same were increased by the award as follows: <FRM>JUDGEMENT_1286_AIR(SC)_1967Html4.htm</FRM> THE dearness allowance of subordinate staff was increased to Rs. 40.00 flat rate per month; that of filing assistants to Rs. 50.00 per month and that of assistants to Rs. 70.00 per month. With regard to the adjustment in the scales, the tribunal concluded that the length of service was to be the real basis on which adjustment in the new revised scales of pay would be made and the employees for whom there was an existing pay, scale which was being revised and increased will be pulled up to fit in the revised scales of pay taking into account their length of service.