ANDHRA BANK Vs. INDUSTRIAL TRIBUNAL CUM LABOUR COURT

JUDGEMENT

(1.) This appeal by special leave arises out of the following facts.

(2.) The Central Government vide its order dated 1st July, 1971 declared Vishakhapatnam as a Group "A" city. As a consequence of the aforesaid declaration, the staff of the appellant bank claimed certain additional benefits such as house accommodation, house rent allowance etc. While some of the other nationalized banks extended the benefits to their employees, the Andhra Bank declined to do so on the plea, inter alia, that it was running into huge losses and was unable to meet the additional burden. These differences led to protracted conciliation proceedings before the Assistant Labour Commissioner, Vishakhapatnam, but no concrete solution was arrived at. The Central Government thereupon referred the dispute to the Industrial Tribunal for adjudication. The respondent management i.e. present appellant filed a written statement before the Industrial Tribunal questioning the jurisdiction of the Tribunal to entertain the reference and further clarifying that on account of several awards such as the Shastri Award, the Desai Award and several bipartite settlements arrived at between the Bank and its employees from time to time, there was no obligation on the bank to give the benefits arising out of the declaration dated 1st July, 1971. The Industrial Tribunal held that there were two points for consideration :

(3.) The Tribunal held that as per the legal position the Industrial Tribunal was competent to entertain the reference. On point No.2 the Court observed that the Andhra Bank was paying house rent to different categories of employees with a ceiling of Rs. 400/- to Rs. 550/- and as the attempts at conciliation had failed on account of the dilatory tactics on the part of the Bank, the employees had absolutely no remedy but to approach the Tribunal for the redressal of their claim. The Tribunal in conclusion observed as under :