SECRETARY BARAUNI TEL SODHAK Vs. PRESIDING OFFICER CENTRAL

JUDGEMENT

(1.) These two writ applications arise out of an award dated 17th April, 1988 passed by the Presiding Officer, Central Government Industrial Tribunal No. 2, Dhanbad, in reference case No. 65 of 1987 and as such they were with consent of the parties taken up for hearing together and are being disposed of by this common judgment.

(2.) In view of the points involved in these writ applications, it is not necessary to state the fact of the matter in great details. Suffice it to say that the concerned workmen were appointed at the Barauni Refinery Project of M/s. Indian Oil Corporation Limited at the construction stage as also at the operation stage. The construction stage continued till the operational unit was about to be commissioned for which 25,00 employees in different categories and in different pay scales were recruited consisting mainly of deputationists from the Central Government and the State Government as also the new entrants. At the construction stage, Civil, Mechanical and Electrical jobs were involved with regard to erection of various plants and limits. The employees who were involved in the construction work were to get construction allowance varying between 20% and 25% of their basic pay in terms of Circular No. 14, dated 30-5-1960 issued by the Management. According to the workmen, construction allowance was payable both to permanent and temporary staff but the permanent employees who were appointed after 1963 had been deprived of the said benefit. Admittedly by notification dated 16-11-1965 the said policy of payment of construction allowance was abolished. It is the further case of the petitioner of C.W.J.C. No. 1250 of 1988(R) (hereinafter to be referred to as 'the Union') that in the year 1969 another Union, namely, Shramik Vikash Parishad, raised a demand for payment of construction allowance, which having been rejected by the Management, culminated in a reference made by the State of Bihar being Reference No. 15 of 1972 wherein an award was made in favour of the workmen, by an award dated 10-6-1976 which is contained in Annexure-A to the counter-affidavit filed on behalf of the Management in C.W.J.C. No. 1250 of 1988(R). The contention of the workmen is that despite the fact that the award was upheld by this Court in C.W.J.C. No. 2439 of 1976, the Management refused to implement the same and as such the instant demand was raised on or about 31-7-1979. The Central Government, being the appropriate Government, by a notification dated 23rd January, 1987 thereafter referred the dispute for adjudication to respondent No. 1 which is in the following terms ; Whether the action of the Management of Barauni Oil Refinery of the Indian Oil Corporation in not paying construction allowance to all the workmen who had joined the Barauni Refinery Project prior to the 1st November, 1965 is justified ? If not, to what relief the workmen are entitled ?

(3.) The case of the Management on the other hand, inter alia, was that the reference was vague and stale. It was contended that cause of action for the reference arose in the year 1965 but as the same has been made in the year 1987, the workmen are not entitled to any relief at all, It was further contended that the Management had gravely been prejudiced by reason of the said reference inasmuch as it has been placed in a disadvantagious position as did not have all the relevant records as there was no statutory requirement to preserve the same. It was further contended that the reference itself is bad in law inasmuch as the Management and the Union had entered into a long term settlement in terms whereof the Union agreed not to raise any demand which would put financial burden on the Management. The Management, on merits of the case, however, submitted that the construction of Barauni Oil Refinery commenced in 1959 and was over in 1963. Normally the daily rated employees were engaged in the construction work. However, when the construction work was substantially over and production in the Refinery commenced, the Management began to appoint permanent employees fixing their scales of pay and other benefits at par with other Public Sector Undertakings. It was submitted that the construction allowances used to be given at a point of time, whence the workmen, could not be provided with the basic civic amenities like markets, transportation, housing etc., but at a latter stage when all those amenities became available, the question of continuing to grant construction allowances to the permanent employees did not arise. It was further submitted that those workmen who were absorbed in the permanent services of the Management, the construction allowances payable to them were merged in their pay and thus by claiming construction allowance once over again, the said workmen seek to get double benefits. It was further submitted that even in the appointment letters issued to all such employees, it has specifically been stated that they would not be entitled to any construction allowance.