HINDUSTAN AERONAUTICS LTD Vs. PRESIDING OFFICER INDUSTRIAL TRIBUNAL

JUDGEMENT

(1.) This writ petition has been filed by the employer-Hindustan Aeronautics Limited challenging the award dated 24.12.1987 passed by the Industrial Tribunal, Agra, whereby the reference made by the State Government has been decided in favour of the employees and the claim of the concerned workmen has been allowed after holding that they would be entitled to house rent allowance (HRA) at the rate of 25% of their salary payable with effect from the date of reference.

(2.) The petitioner-company Hindustan Aeronautics Limited is a company registered under the Indian Companies Act with its head office at Bangalore. Besides several other places all over India, it has an Overhaul Division at Agra. The present petition relates to the workmen of the petitioner company at Agra. The undisputed facts are that prior to 1983, all the employees of the petitioner company posted at its offices all over India were paid house rent allowance at the fixed rate of 10% of their salary. On 7.12.1983, a settlement is alleged to have been arrived at between the workmen and management of Hindustan Aeronautics Limited, Bangalore Complex, Bangalore. A copy of the memorandum of settlement has been filed as Annexure-1 to the writ petition and a perusal of the same shows that it was a settlement arrived at "Under Sections 2 (p) and 18 (1) of the Industrial Disputes. Act read with Rule 59 (4) of the Industrial Disputes Act (Karnataka) of 1957, between the workmen and management of Hindustan Aeronautics Limited. Bangalore Complex, Bangalore." By the aforesaid settlement dated 7.12.1983, besides several other issues, the issue relating to house rent allowance was dealt with at Item No. 10 wherein it was provided that with effect from 1.1.1983, the house rent allowance shall be payable at the rates indicated in the settlement which were said to be based on the Government classification of cities. The city of Bangalore was classified as 'A class' city and 25% HRA was to be paid to the Employees of Bangalore ; whereas Agra fell in the category of 'B Class' city and only 15% HRA was to be paid to the workmen of Agra. It has not been disputed by the petitioner that the Union of Workers of Agra Division of the petitioner company was not involved in the negotiation for arriving at the settlement nor were they party to the said settlement.

(3.) Being aggrieved by the discrimination in payment of HRA, the workmen through Hindustan Aeronautics Employees Union, Agra (respondent No. 2) (hereinafter referred to as the Agra Union) approached the State Government under- Section 4K of the U. P. Industrial Disputes Act, 1947 and in turn the State Government made a reference of the dispute to the Industrial Tribunal (IV), U. P., Agra, for adjudication. The terms of reference were as under :