{"id":15932,"date":"1996-10-29T00:00:00","date_gmt":"1996-10-28T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/h-m-t-limitedwormen-of-indian-vs-h-m-t-head-office-employees-on-29-october-1996"},"modified":"2018-10-10T20:54:25","modified_gmt":"2018-10-10T15:24:25","slug":"h-m-t-limitedwormen-of-indian-vs-h-m-t-head-office-employees-on-29-october-1996","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/h-m-t-limitedwormen-of-indian-vs-h-m-t-head-office-employees-on-29-october-1996","title":{"rendered":"H.M.T. Limitedwormen Of Indian &#8230; vs H.M.T. Head Office Employees&#8217; &#8230; on 29 October, 1996"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">H.M.T. Limitedwormen Of Indian &#8230; vs H.M.T. Head Office Employees&#8217; &#8230; on 29 October, 1996<\/div>\n<div class=\"doc_author\">Author: Kirpal<\/div>\n<div class=\"doc_bench\">Bench: J.S. Verma, B.N. Kirpal<\/div>\n<pre>           PETITIONER:\nH.M.T. LIMITEDWORMEN OF INDIAN TELEPHONE INDUSTRIES LTD. AND\n\n\tVs.\n\nRESPONDENT:\nH.M.T. HEAD OFFICE EMPLOYEES' ASSO. AND ORS.THE MANAGEMENT O\n\nDATE OF JUDGMENT:\t29\/10\/1996\n\nBENCH:\nJ.S. VERMA, B.N. KIRPAL\n\n\n\n\nACT:\n\n\n\nHEADNOTE:\n\n\n\nJUDGMENT:\n<\/pre>\n<p>\t [With C.A. Nos. 1723, 1724, 1725, 1726\/90]<br \/>\n&amp;<br \/>\n\t       CIVIL APPEAL NO. 13380 OF 1996<br \/>\n\t[Arising Out of S.L.P.(C) No. 5345 of 1990]<br \/>\n\t\t      J U D G M E N T<br \/>\nKIRPAL, J.\n<\/p>\n<p>     Leave granted.\n<\/p>\n<p>     The award\tof the\tNational Industrial Tribunal, Bombay<br \/>\n(hereinafter referred  to as&#8217; the Tribunal&#8217;) adjudicating on<br \/>\nthe demands  of the  unions of\tfive Bangalore\tbased public<br \/>\nsector undertakings  for parity\t in minimum  wage  with\t the<br \/>\nminimum wage  payable to  the employees\t of  another  public<br \/>\nsector undertaking  namely; Bharat Heavy Electricals Limited<br \/>\n(hereinafter referred  to as  &#8216;BHEL&#8217;) is  challenged by\t the<br \/>\nmanagements as well as the workmen in these appeals.\n<\/p>\n<p>     The minimum  wage of  the lowest cagetory of workmen of<br \/>\nfive Bangalore\tbased  public  sector  undertakings  namely;<br \/>\nBharat\tElectronics  Limited  (hereinafter  referred  to  as<br \/>\n&#8216;B.E.L.&#8217;), Bharat Earth Movers Limited (hereinafter referred<br \/>\nto as  &#8216;B.E.M.L.&#8217;), Indian    Telephone\t Industries  Limited<br \/>\n(hereinafter  referred\t to   as   &#8216;I.T.I.   &#8216;),   Hindustan<br \/>\nAeronautics Limited  (hereinafter referred  to as  &#8216;H.A.L.&#8217;)<br \/>\nand Hindustan  Machine Tools   Limited (hereinafter referred<br \/>\nto as  &#8216;H.M.T.&#8217;) was  the same\tin all\tthese public  sector<br \/>\nundertakings. By  settlements entered  into on various dates<br \/>\nin 1974\t between the  managements and  the workmen  of these<br \/>\nfive undertakings  except I.T.I.,  the minimum\twage of\t the<br \/>\nlowest category of workmen was fixed at Rs. 300\/- consisting<br \/>\nof basic  pay of Rs. 200\/- + Dearness Allowance of Rs. 100\/-<br \/>\nwhich was  linked  with\t Local\tConsumer  Price\t Index.\t The<br \/>\nminimum wage  in I.T.I.\t was also  fixed at  Rs.  300\/-.  As<br \/>\ndearness allowance  was linked with All India Consumer Price<br \/>\nIndex, on the basis of the Index prevailing as on 1,12.1973,<br \/>\nthe Dearness  Allowance payable\t on the\t basic wage  of\t Rs.<br \/>\n200\/- came  to\tRs.  91\/-  and,\t hence\tin  order  to  bring<br \/>\nuniformity in  the minimum wage, the employees of the I.T.I.<br \/>\nwere paid  City Compensatory Allowance (hereinafter referred<br \/>\nto as  &#8216;C.C.A.&#8217;) of Rs. 9\/- at 4 1\/2 % of the basic pay. The<br \/>\nsettlements in\tthese five  undertakings were to be in force<br \/>\ntill 31.12.1976.\n<\/p>\n<p>     In BHEL,  with whom  parity was  being claimed  by\t the<br \/>\nworkmen\t of   these  five  industries,\tan  agreement  dated<br \/>\n17\/18.9.73 had\tbeen entered  into whereby  the minimum wage<br \/>\nwas fixed  at Rs.  258.70\/- comprising\tof basic  pay of Rs,<br \/>\n200\/- and  Dearness Allowance  of Rs.  58\/- at the All India<br \/>\nConsumer Price\tIndex of  200 points  for industrial workers<br \/>\nwith 1960  base. A  revision was effected by agreement dated<br \/>\n17\/18.1.1974 and the minimum wage of the workers of BHEL was<br \/>\nfixed  at  Rs.\t300\/-.\tThis  minimum  wage,  and  the\twage<br \/>\nstructure constructed  on this\tbasis, came  into force with<br \/>\neffect from  1.9.1973 and was to be in force for a period of<br \/>\nfour years. This agreement expired at the end of August 1977<br \/>\nand negotiations  for the  review and  revision of  the same<br \/>\nw.e.f. 1.9.1977\t were commenced\t between the  management and<br \/>\nthe workers  in March,\t1978. A\t final agreement between the<br \/>\nmanagement and\tthe workers  was reached  on 8\/9-1-1980.  By<br \/>\nthis agreement,\t the wages  as on  1.1-1978 for an unskilled<br \/>\nemployee in  BHEL at  the lowest level as fixed at Rs. 500\/-<br \/>\nper month  at All  India Consumer Price Index of 327 points.<br \/>\nThis agreement\twas to\tbe effective  from 1.1.1978  and was<br \/>\nimplemented in April, 1980 .\n<\/p>\n<p>     The 1974 settlements between the managements of B.E.L.,<br \/>\nI.T.I., H.A.L., and B.E.M.L. expired on 31.12.1976 and hence<br \/>\nthe workmen  unions submitted  charters of  demands in early<br \/>\npart of 1977. Conciliation proceedings were held between the<br \/>\nmanagements of\tfive public  sector undertakings  and  their<br \/>\nworkmen and amicable settlements were arrived at between the<br \/>\nparties on 25.5.1978. Term number 1 of these settlements was<br \/>\nuniform and is as follows:\n<\/p>\n<blockquote><p>     &#8220;The Union\t agrees\t to  accept  the<br \/>\n     offer of the management with regard<br \/>\n     to pay  scales, quantum of Dearness<br \/>\n     Allowance and  Fitment benefits and<br \/>\n     method of\tfixation of  pay in  the<br \/>\n     revised pay  scales as  detailed in<br \/>\n     Annexure-1.   This,    however   is<br \/>\n     without prejudice\tto  the\t Union&#8217;s<br \/>\n     right to  take  up\t the  issues  of<br \/>\n     revision of  minimum wages\t and the<br \/>\n     enhancement   of\t the   rate   of<br \/>\n     neutralisation\tof\tDearness<br \/>\n     Allowance beyond Rs. 1.30 per point<br \/>\n     with the Government of India and if<br \/>\n     the Government  of India  agrees to<br \/>\n     the  improvement\tin  the\t minimum<br \/>\n     wages  or\tthe  Dearness  Allowance<br \/>\n     neutralisation rate  the management<br \/>\n     agrees    to     make     necessary<br \/>\n     modification to  the minimum  wages<br \/>\n     and       Dearness\t       Allowance<br \/>\n     neutralisation\t  rata\t     and<br \/>\n     consequential  adjustment\t in  the<br \/>\n     wage structure in consultation with<br \/>\n     the Unions.&#8221;<\/p><\/blockquote>\n<p>     The said settlements dated 25.5.1978 did not settle all<br \/>\nthe  demands   of  the\t workmen.  Conciliation\t proceedings<br \/>\ncontinued which, therefore, resulted in different memorandum<br \/>\nof settlements\twhich were entered into in case of H.A.L. on<br \/>\n30.8.1978, in  B.E.M.L. on 31.8.1978, in I.T.I. on 1.9.1978,<br \/>\nin H.M.T. on 2.9.1978 and in B.E.L. on 3.9.1978.\n<\/p>\n<p>     These settlements\tcontained different, though somewhat<br \/>\nsimilar, terms\twith regard  to revision  of wages.   In the<br \/>\nsettlement of  B.E.L.,\tterm  Nos.  1.0\t and  1.1.  were  as<br \/>\nfollows:\n<\/p>\n<blockquote><p>     &#8220;1.0 This\tagreement   is\t without<br \/>\n     prejudice to  the Union&#8217;s\tright to<br \/>\n     take up  the issues  of revision of<br \/>\n     minimum wages  and the  enhancement<br \/>\n     of the  rate of  neutralisation  of<br \/>\n     Dearness Allowance\t at Rs. 1.30 per<br \/>\n     point rise\/fall  in the  local CPI,<br \/>\n     with  the\tGovernment  and\t if  the<br \/>\n     Government\t of   India  agrees   to<br \/>\n     improve the  minimum  wage\t or  the<br \/>\n     neutralisation rate beyond Rs. 1.30<br \/>\n     per point, the Management agrees to<br \/>\n     make necessary modifications to the<br \/>\n     minimum wage,  D.A.  neutralisation<br \/>\n     rate and  consequential adjustments<br \/>\n     in\t  the\t wage\t structure    in<br \/>\n     consultation with the Unions.\n<\/p><\/blockquote>\n<blockquote><p>     1.1  If\tthe    minimum\t  wages,<br \/>\n     comprising\t of   pay  and\tDearness<br \/>\n     Allowance,\t or   if  the\trate  of<br \/>\n     neutralisation\tof\tDearness<br \/>\n     Allowance is  altered to  a  higher<br \/>\n     rate  than\t  agreed  to   in   this<br \/>\n     settlement in any other Engineering<br \/>\n     Central Public  Sector  Undertaking<br \/>\n     such  as  BHEL,  H.M.T.  etc.,  the<br \/>\n     Management agrees to make necessary<br \/>\n     modifications   in\t  the\trelevant<br \/>\n     clauses\t  and\t   consequential<br \/>\n     adjustments, in  consultation  with<br \/>\n     the Unions.&#8221;<\/p><\/blockquote>\n<p>     Similar terms  were incorporated  in the settlements in<br \/>\nthe cases of B.E.M.L. and H.A.L.. In the cases of I.T.I. and<br \/>\nH.M.T., however,  there was no term similar to 1.0 or 1.1 of<br \/>\nthe B.E.L. settlement but the above- mentioned term 1 of the<br \/>\nsettlement dated  25.5.78 was  reiterated in the preamble of<br \/>\ntheir settlements.  At the  time when these settlements took<br \/>\nplace in  1978, negotiations  were taking  place between the<br \/>\nmanagements and\t the workers  of BHEL which had not resulted<br \/>\nin a  final settlement.\t It is\tfor this  reason that in the<br \/>\naforesaid clause  1.1 reference\t was made  to the settlement<br \/>\nwhich might  take  place  between  the\tmanagement  and\t the<br \/>\nworkers\t of   BHEL  and\t  which\t could\t result\t in  certain<br \/>\nmodifications being  made in  the relevant  clauses  of\t the<br \/>\nsettlement.\n<\/p>\n<p>     After  the\t  settlement  was  arrived  at\tbetween\t the<br \/>\nmanagement and\tthe workers  of BHEL  on 8\/9.1.80  which had<br \/>\nresulted in  the revision  of wage at the lowest level of an<br \/>\nunskilled employee  to Rs.  500\/- P.M.\tw.e.f.\t1.9.78,\t the<br \/>\nunions representing  the workmen in the five Bangalore based<br \/>\npublic sector undertakins raised the question of revision of<br \/>\nminimum wage  in these industries as per the minimum wage as<br \/>\nsettled in  BHEL. A joint action forum (hereinafter referred<br \/>\nto  as\t &#8216;JAF&#8217;)\t of   the  unions   of\tfive  public  sector<br \/>\nundertakings at Bangalore and Kolar Gold Fields (which was a<br \/>\nunit of\t BHEL) was formed. On 12.9.1980, this JAF formulated<br \/>\na common proposal for submission to the management and<br \/>\naccordingly, the negotiating unions submitted common demands<br \/>\nto the\trespective undertakings in the matter of revision of<br \/>\nwages. These  demands primarily\t related to  the  claim\t for<br \/>\naddition of Rs. 30 to the existing scales of pay.\n<\/p>\n<p>     The aforesaid  demands received  no response  whereupon<br \/>\nthe  negotiating  unions  gave\tnotices\t to  the  respective<br \/>\nmanagements of their decision to go on indefinite strike any<br \/>\nday after  10.12.1980. Conciliation  proceedings between the<br \/>\nmanagements and the unions then commenced and the strike was<br \/>\npostponed to 26.12.1980 on which date the workmen of all the<br \/>\nfive undertakings  struck work\tafter they rejected an offer<br \/>\nwhich had  been made  by the  managements  just\t before\t the<br \/>\ncommencement  of  the  strike.\tAfter  the  commencement  of<br \/>\nstrike,\t  conciliation\t  proceedings\tagain\tstarted\t  on<br \/>\n27.12.1980. On\t5.2.1981, when no agreement could be arrived<br \/>\nat, the conciliation officer submitted his failure report.\n<\/p>\n<p>     The strike\t in the\t H.M.T. watch factory was called off<br \/>\non  6.3.1981  and  thereafter  the  J.A.F.  took  a  general<br \/>\ndecision on  12.3.1981 to  withdraw the\t strike. The  strike<br \/>\nwas,  accordingly,  withdrawn  on  14\/15\/16.3.1981  and\t the<br \/>\nworkers resumed\t work on  subsequent dates.  No negotiations<br \/>\nfor settlement\tof the\tdemands commenced  and thereupon,  a<br \/>\ndecision was  taken by J.A.F. to laun h an indefinite hunger<br \/>\nstrike which  commenced\t on  29.4.1981\tand  continued\ttill<br \/>\n10.5.1981. The\tmanagements of\tB.E.L., B.E.M.L., I.T.I. and<br \/>\nH.A.L. declared a lock out in all their units located at<br \/>\nBangalore w.e.f. 6.5.1981 on the ground that the strike<br \/>\nhad  in\t fact  not  been  withdrawn  and  that\tthe  workers<br \/>\nContinued the  strike and  they\t also  carried\tout  violent<br \/>\nactivities inside the factory. Lock out was also declared at<br \/>\nKolar Gold  Fields for\tthe  same  reason  W.e.f.  8.5.1981.<br \/>\nThereafter, fresh  conciliation proceedings  were  commenced<br \/>\nand the\t lock out was lifted w.e.f 2\/3.6.81 and a settlement<br \/>\ndated 9.6.1981\twas arrived  at between\t the managements and<br \/>\nthe unions.  The terms of settlement in the cases of all the<br \/>\nfive  Bangalore\t  based\t public\t  sector  undertakings\twere<br \/>\nidentically worded  and these  terms of\t settlement were  as<br \/>\nunder:\n<\/p>\n<blockquote><p>     (i)  The wage settlements dated 3rd<br \/>\n     and 4th  September, 1978  which are<br \/>\n     to expire of 30.6.1981 are extended<br \/>\n     upto 31.12.1982.\n<\/p><\/blockquote>\n<blockquote><p>     (ii) The workmen  on the  rolls  of<br \/>\n     the company  as on the date of this<br \/>\n     settlement will  be paid a lump sum<br \/>\n     of Rs.  700\/- (Rupees Seven Hundred<br \/>\n     only).\n<\/p><\/blockquote>\n<blockquote><p>     (iii) With\t effect\t from  1.1.1981,<br \/>\n     for the period they are entitled to<br \/>\n     wages, they  would also  be paid an<br \/>\n     ad-hoc allowance  of Rs.  25\/-  per<br \/>\n     month. This  amount will  count  as<br \/>\n     pay for all purposes except for pay<br \/>\n     fixation.\n<\/p><\/blockquote>\n<blockquote><p>     (iv  All other terms and conditions<br \/>\n     relating  to  pay,\t allowances  and<br \/>\n     other monetary benefits in terms of<br \/>\n     the settlements dated 3rd September<br \/>\n     and  4th\tSeptember,   1978   will<br \/>\n     continue for the extended period of<br \/>\n     the settlement.\n<\/p><\/blockquote>\n<blockquote><p>     (v)  The\t Union\t  assures    the<br \/>\n     Management that they will assist in<br \/>\n     the  maintenance\tof   discipline,<br \/>\n     improving productivity and ensuring<br \/>\n     smooth production in the factory.&#8221;<\/p><\/blockquote>\n<p>     Even after the aforesaid settlement dated 9.6.1981, the<br \/>\nworkmen continued  to press  for wage  parity of the minimum<br \/>\nwage with  BHEL w.e.f.\t1.1.1978  on  the  ground  that\t the<br \/>\nsettlement of  9.6.1981 did  not settle\t the demands made by<br \/>\nthe unions  on 12.9.1980.  On writ  Petitions being filed by<br \/>\nthe unions  against B.E.L.,  I.T.I., B.A.L and B.E.M.L., the<br \/>\nKarnataka  High\t Court\tvide  its  decision  dated  9.8.1982<br \/>\ndirected the  Government of Karnataka to make a reference of<br \/>\nthe industrial\tdispute to  the appropriate  tribunal  under<br \/>\nSection 10 of the Industrial Disputes Act, 1947 (hereinafter<br \/>\nreferred to  as &#8216;the  Act&#8217;). This reference was accordingly,<br \/>\nmade  to  the  State  Industrial  Tribunal  by\torder  dated<br \/>\n23.4.1983. Two questions were referred to the said Tribunal;<br \/>\none was\t in respect of parity with employees of the BHEL and<br \/>\nthe second  was about  the illegality of strike and the lock<br \/>\nout. It\t appears that  the Governments\tor West\t Bengal\t and<br \/>\nMaharashtra  had   also\t made\tsimilar\t references  to\t the<br \/>\nrespective State Tribunals. Faced with this situation, where<br \/>\nreferences had been made to the tribunals in three different<br \/>\nstates, the  managements approached  the Central  Government<br \/>\nand thereupon  reference was made to the National Industrial<br \/>\nTribunal by  the Central Government on 10\/30.5.1984. To this<br \/>\nreference the  unions of  five Bangalore based public sector<br \/>\nundertakings, which  were situated  outside Bangalore.\twere<br \/>\nnot made  parties and  a writ  petition\t was  filed  in\t the<br \/>\nKarnataka  High\t Court,\t which\tby  order  dated  20.2.1985,<br \/>\ndirected the  Central Government to consider the question of<br \/>\nincluding  the\t State\tunions\t in  the   said\t  reference.<br \/>\nAccordingly, by order dated 3.5.1985 reference in respect of<br \/>\nall the\t units, all  regional  and  sales  offices  of\tfive<br \/>\nundertakings was  mads. The  terms of  the reference were as<br \/>\nfollows:\n<\/p>\n<blockquote><p>     &#8220;Are  the\t workmen  justified   in<br \/>\n     demanding\t revision    of\t   wages<br \/>\n     bringing their  wages on  par  with<br \/>\n     BHEL  in\tview  of   the\trelevant<br \/>\n     clauses in the 1973 settlement?\n<\/p><\/blockquote>\n<blockquote><p>     2.\t  If  so,  what\t should\t be  the<br \/>\n     quantum and  the period  for  which<br \/>\n     such quantum  is to be paid in view<br \/>\n     of the  BHEL settlement  subsisting<br \/>\n     till the end of August, 1982?\n<\/p><\/blockquote>\n<blockquote><p>     3.\t  Are the  workmen of  Hindustan<br \/>\n     Machine Tools Ltd., Bangalore, (ii)<br \/>\n     Bharat Earth Movers Ltd., Bangalore<br \/>\n     and Kolar Gold Fields,\n<\/p><\/blockquote>\n<blockquote><p>     (iii) Indian  Telephone Industries,<br \/>\n     Bangalore\n<\/p><\/blockquote>\n<blockquote><p>     (iv) Bharat    Electronics\t   Ltd.,<br \/>\n     Bangalore and\n<\/p><\/blockquote>\n<blockquote><p>     (v)  Hindustan  Aeronautics   Ltd.,<br \/>\n     Bangalore\tjustified  in  going  on<br \/>\n     strike w.e.f. 26.12 1980? If so, to<br \/>\n     what   relief   are   the\t workmen<br \/>\n     entitled?\n<\/p><\/blockquote>\n<blockquote><p>     4.\t  Are  the  managements\t of  (i)<br \/>\n     Hindustan\t Machine   Tools   Ltd.,<br \/>\n     Bangalore; (ii) Bharat Earth Movers<br \/>\n     Ltd.,  Bangalore\tand  Kolar  Gold<br \/>\n     Fields,  (iii)   Indian   Telephone<br \/>\n     Industries Bangalore,  (iv)  Bharat<br \/>\n     Electronics Ltd., Bangalore and (v)<br \/>\n     Hindustan\t   Aeronautics\t   Ltd.,<br \/>\n     Bangalore\tjustified  in  declaring<br \/>\n     lock outs\tof their  establishments<br \/>\n     with  effect   from   8\/9.5.81   to<br \/>\n     4.6.1981 at  Kolar Gold  Fields and<br \/>\n     7.5.1981\t to\t2\/3.6.1981    at<br \/>\n     Bangalore? If  not, are the workmen<br \/>\n     entitled to  wages for the lock out<br \/>\n     period or to any other relief?&#8221;<\/p><\/blockquote>\n<p>     In the  common statement  of claim filed by the unions,<br \/>\nit  was\t  contended  that  the\tworkmen\t were  justified  in<br \/>\ndemanding that\twages and wage structure be revised so as to<br \/>\nbring the  minimum wages on par with that obtaining in BHEL.<br \/>\nIt was\ta contention  of the unions that the relevant clause<br \/>\nin 1978\t settlement gave liberty to the workmen to raise the<br \/>\nquestion of  wage revision  as and  when there\twas a  final<br \/>\nsettlement in  BHEL or\tas and\twhen the Government of India<br \/>\ncommunicated a\tchange of  attitute in\tthe matter  of\twage<br \/>\nfixation.  The\t unions\t contended   that  in  view  of\t the<br \/>\nsettlement dated 8\/9.1.1980 in BHEL, the relative difference<br \/>\nin the minimum wage of the unskilled workmen in BHEL and the<br \/>\nworkmen in  the units  of H.A.L.,  B.E.L., B.E.M.L.,  and at<br \/>\nKolar Gold Fields was as follows:\n<\/p>\n<pre>\t\t      BHEL\t      BEL   BEML  HAL\nBasic wage\t      Rs. 335.00\t  Rs. 305.00\nDearness Allowance    Rs. 165.00\t  Rs. 125.00\nHouse Rent Allowance  Rs. 39.00\t\t  Rs. 35.00\nCity Compensa-\t      Rs. 15.60\t\t  Rs.\t-\ntory Allowance\n<\/pre>\n<p>\t\t    &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-\n<\/p>\n<p>\t\t     Rs. 554.60\t\t  Rs. 465.00\n<\/p>\n<p>\t\t    &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-\n<\/p>\n<p>     In\t addition   in\tBHEL  settlement<br \/>\n     there was\tprovision for giving one<br \/>\n     more increment  in revised scale to<br \/>\n     311 workmen  on  the  roll\t of  the<br \/>\n     company  on   the\t date\tof   the<br \/>\n     settlement.\n<\/p>\n<p>     With regard  to  quantum  of  increase  of\t wages,\t the<br \/>\nunions&#8217; claim was as follows:\n<\/p>\n<blockquote><p>     &#8220;1.  The  existing\t  scale\t of  pay<br \/>\n     should be\trestructured  by  adding<br \/>\n     Rs. 30.00 at the minimum and at all<br \/>\n     stages in each scales.\n<\/p><\/blockquote>\n<blockquote><p>     2.(a) The irreduciable minimum D.A.<br \/>\n     for KGF  as on  1.9.1978 should  be<br \/>\n     revised to\t Rs. 133  as against Rs.<br \/>\n     128\/-.\n<\/p><\/blockquote>\n<blockquote><p>     (b)  For the purpose of computation<br \/>\n     of variable D.A. All India Consumer<br \/>\n     Price  Index   figures  should   be<br \/>\n     adopted instead  of local\tconsumer<br \/>\n     price index.\n<\/p><\/blockquote>\n<blockquote><p>     3.\t  For  the  existing  employees,<br \/>\n     basic pay\tshould be  fixed in  the<br \/>\n     following manne:\n<\/p><\/blockquote>\n<blockquote><p>     (a)  Add Rs. 30.00\n<\/p><\/blockquote>\n<blockquote><p>     (b)  Add one increament.<\/p><\/blockquote>\n<blockquote><p>     (c)  Add  one  more  increament  in<br \/>\n     lieu of  &#8216;next  higher  state&#8217;  (to<br \/>\n     avoid anomalies&#8217;.\tand  to\t provide<br \/>\n     for    consequential    adjustments<br \/>\n     benefits.\n<\/p><\/blockquote>\n<blockquote><p>     4.\t  City\tCompensatory   Allowance<br \/>\n     should be paid at the rate of 6% of<br \/>\n     the basic wages.\n<\/p><\/blockquote>\n<blockquote><p>     5.\t  The fitment  benefit which  is<br \/>\n     not  extented   to\t the   employees<br \/>\n     joining after the date of agreement<br \/>\n     should be extended to them&#8221;<\/p><\/blockquote>\n<p>     The  managements\tin  their  reply  refuted  the\tsaid<br \/>\ndemands. The  main contention, in this regard, was that when<br \/>\nthe demand  had been  raised for  revision of  pay after the<br \/>\nsettlement in  BHEL had\t been arrived  at, then the disputes<br \/>\nhad been  settled with\tthe payment  of ad-hoc amount of Rs.<br \/>\n700\/- and an additional ad-hoc payment of Rs. 25\/- p.m. from<br \/>\n1.1.1981 and,  therefore, the  question of  wage parity with<br \/>\nBHEL did  not survive any longer. It was also contended that<br \/>\nthe strike  of the  workmen was unjustified and illegal and,<br \/>\ntherefore, the workmen were not entitled to any wages during<br \/>\nthe strike  period. The\t further contention on behalf of the<br \/>\nmanagements was\t that even  after the strike had been called<br \/>\noff,  the   workers  had   resorted  to\t  various  acts\t  of<br \/>\nintimidations go-slow, beating up of the willing workers who<br \/>\nhad attended  factory  during  the  strike  period  and\t the<br \/>\nworkmen\t also\tresorted  to  other  forms  of\tindiscipline<br \/>\nincluding destroying  of company  property thereby making it<br \/>\nimpossible to  run the\tfactory under  normal conditions. In<br \/>\nsubstance the  strike conditions  were continued from inside<br \/>\nthe  factory   which  culminated  in  very  serious  violent<br \/>\nactivities which  led to  the declaration  of lock-out.\t The<br \/>\nsaid lock-out,\tit was\tsubmitted, was\tjustified and  legal<br \/>\nand, therefore,\t the workers  were not entitled to wages for<br \/>\nthe period during which the lock-out subsisted.\n<\/p>\n<p>     The Tribunal gave its award on 10.11.1989. While it did<br \/>\nnot separately\tdeal with  the issues which had been framed,<br \/>\nit considered  the contentions\tof  the\t rival\tparties.  In<br \/>\nbrief, the  conclusions arrived\t at by\tthe Tribunal were as<br \/>\nfollows:\n<\/p>\n<blockquote><p>     (a)  The  scope   of  reference  in<br \/>\n     respect of\t parity\t with  BHEL  was<br \/>\n     only with\tregard to  minimum  wage<br \/>\n     payable to the unskilled workmen of<br \/>\n     the lowest\t category and, there was<br \/>\n     no reference  for revising the pay-<br \/>\n     scales during  the operation of the<br \/>\n     earlier settlements.\n<\/p><\/blockquote>\n<blockquote><p>     (b)  The  relevant\t clause\t of  the<br \/>\n     settlement\t of  1978  had\tgiven  a<br \/>\n     right to  the employees  to ask for<br \/>\n     parity  with  BHEL\t in  respect  of<br \/>\n     minimum   wage   for   the\t  lowest<br \/>\n     category and,  therefore, there was<br \/>\n     no reason\twhy there  should not be<br \/>\n     any  parity   during   the\t  period<br \/>\n     covered by the settlement of 1978.\n<\/p><\/blockquote>\n<blockquote><p>     (c)  The workmen  were entitled  to<br \/>\n     the minimum  wage of Rs. 500\/- p.m.<br \/>\n     w.e.f. 1.9.1978.\n<\/p><\/blockquote>\n<blockquote><p>     (d)  The settlement dated 15.6.1981<br \/>\n     did  not  operate\tat  par\t to  the<br \/>\n     present reference\ton the\tquestion<br \/>\n     of parity\twith  BHEL  because  the<br \/>\n     settlement\t    dated     15.6.1981,<br \/>\n     although signed  in the  course  of<br \/>\n     conciliation   proceedings\t   under<br \/>\n     Section  12(3)  of\t the  Industrial<br \/>\n     Disputes  Act,  1947,  was\t without<br \/>\n     prejudice to the contentions of the<br \/>\n     employees to give parity in respect<br \/>\n     of\t minimum  wage\tfor  the  lowest<br \/>\n     category of BHEL. By the settlement<br \/>\n     of\t 15.6.1981,   only  an\t interim<br \/>\n     arrangement had been arrived at and<br \/>\n     the   payments    were   thereunder<br \/>\n     described by the Tribunal as ad-hoc<br \/>\n     payments,\tcould  not  be\tadjusted<br \/>\n     towards the  minimum  wage\t of  Rs.<br \/>\n     500\/- p.m.\n<\/p><\/blockquote>\n<blockquote><p>     (e)  Although, the strike commenced<br \/>\n     by the  employees in  all the  five<br \/>\n     Bangalore\t Based\t public\t  sector<br \/>\n     undertakings were\tillegal but  the<br \/>\n     Tribunal held  that this strike was<br \/>\n     justified as the Union of India did<br \/>\n     not agree\tto  the\t demand\t of  the<br \/>\n     employees with parity in respect of<br \/>\n     minimum  wage  of\tlowest\tcategory<br \/>\n     with BHEL.\n<\/p><\/blockquote>\n<blockquote><p>     (f)  The lock  out declared  by the<br \/>\n     managements   of\tthe   companies,<br \/>\n     except in\tthe case of HMT where no<br \/>\n     lock was declared, was justified.\n<\/p><\/blockquote>\n<blockquote><p>     (g)  The employees of the companies<br \/>\n     at Bangalore  should be paid 35% of<br \/>\n     the wages\tfor the strike and lock-<br \/>\n     out periods.<\/p><\/blockquote>\n<p>     The aforesaid Award of the Tribunal has been challenged<br \/>\nby the\tmanagements of the five undertakings and the unions.<br \/>\nThe undertakings  filed special\t leave\tpetitions  impugning<br \/>\nthat part  of the decision of the Tribunal which had awarded<br \/>\na minimum  wage of  Rs. 500\/-  p.m. and had also not allowed<br \/>\nthe adjustment of Rs. 25\/- p.m. even though the minimum wage<br \/>\nwas fixed  at Rs. 530\/- p.m. Further more, the challenge was<br \/>\nalso to\t the award of 35% of the wages to the workmen during<br \/>\nthe strike and lock out periods.\n<\/p>\n<p>     Special Leave  was granted\t by this  Court on  2.4.1990<br \/>\nlimited to the three questions which were;\n<\/p>\n<blockquote><p>     1)\t  Payment of  35% wages\t for the<br \/>\n     period of strike;\n<\/p><\/blockquote>\n<blockquote><p>     2)\t  Payment for the period of lock<br \/>\n     out; and\n<\/p><\/blockquote>\n<blockquote><p>     3)\t  set-off  of\tRs.  25\/-   p.m.<br \/>\n     claimed by\t the  management,  which<br \/>\n     was disallowed by the Tribunal.<\/p><\/blockquote>\n<p>     The grievance  of the  workmen, which led to the filing<br \/>\nof these appeals by special leave, was on three counts:\n<\/p>\n<blockquote><p>     i)\t  That there  had been\tinadequate increase of wages<br \/>\n     at higher grades;\n<\/p><\/blockquote>\n<blockquote><p>     ii)  The Tribunal\thad ordered  discontinuance of C.C.A<br \/>\n     with  regard  to  the  employees  of  Indian  Telephone<br \/>\n     Industry;\n<\/p><\/blockquote>\n<blockquote><p>     iii) 100%\twages for  strike and lock-cut period should<br \/>\n     have been awarded.<\/p><\/blockquote>\n<p>     It was  contended by  Mr. Narayan\tB.  Shetye,  learned<br \/>\ncounsel on  behalf of  the managements,\t that  the  Tribunal<br \/>\nhaving come  to the  conclusion that the strike was illegal,<br \/>\ncould not  have awarded\t any wages  in respect of the strike<br \/>\nperiod. Similarly,  as the  Tribunal had  held that the lock<br \/>\nout was justified, it then could not have awarded 35% of the<br \/>\nwages for  this period\tto the workmen. Mr. Jitendra Sharma,<br \/>\nlearned counsel\t for respondents, however contended that the<br \/>\nstrike was  not illegal and in any event, as the said strike<br \/>\nhad been  called off,  no lock out could have been declared.<br \/>\nIn the\talternative, it was submitted that for the period of<br \/>\nlock out, which should have been declared to be illegal, the<br \/>\nworkmen were entitled to full wages.\n<\/p>\n<p>     On the  basis of  the evidence which was led before the<br \/>\nTribunal it  held, as  already noted,  that the lock-out was<br \/>\njustified because  the demand of the workmen, which had been<br \/>\nraised in  terms of  the settlement  of 1978.  had not\tbeen<br \/>\nagreed to  by the  Government. The strike was, however, held<br \/>\nto  be\tillegal\t because  I.T.I.,  H.A.L.  and\tH.M.T.\twere<br \/>\ndeclared to  be public\tutility services  and no  notice  as<br \/>\ncontemplated by\t Section 22(a)\tof the\tAct had\t been given.<br \/>\nAfter taking  note of the fact that conciliation proceedings<br \/>\nbetween the  managments and  the workmen  were going on when<br \/>\nthe strike commenced, the Tribunal concluded as follows;\n<\/p>\n<blockquote><p>     &#8220;The strike  in the  public utility<br \/>\n     services and  in other undertakings<br \/>\n     was   illegal    because\tit   was<br \/>\n     commenced during  the  pendency  of<br \/>\n     the conciliation proceedings before<br \/>\n     the   Conciliation\t   Officer.   As<br \/>\n     mentioned above,  at about the same<br \/>\n     time when\tthe strike  notices were<br \/>\n     given conciliation\t proceedings  in<br \/>\n     respect  of   the\tdemands\t of  the<br \/>\n     workmen were  commenced and had not<br \/>\n     come to  an end when the strike was<br \/>\n     actually commenced\t on  26.12.1980.<br \/>\n     Admittedly,  by   that   time   the<br \/>\n     conciliation officer  had not  made<br \/>\n     any failure  report. The  strike in<br \/>\n     the public\t utility  services  viz.<\/p><\/blockquote>\n<blockquote><p>     ITI, HAL and HMT Hyderabad was thus<br \/>\n     in contravention  of clause  (d) of<br \/>\n     sub-section  (1)\tof  Section  22,<br \/>\n     while  the\t  strike  in  the  other<br \/>\n     undertakings    contravened    sub-<br \/>\n     section (a)  of Section  23 of  the<br \/>\n     Industrial\t Disputes   Act,   1947.<br \/>\n     There  is\talso  substance\t in  the<br \/>\n     contention urged  on behalf  of the<br \/>\n     managements  that\tthe  strike  was<br \/>\n     illegal  also  because  it\t was  in<br \/>\n     contravenetion of\tsub-section  (c)<br \/>\n     of Section\t 23. The  strike was not<br \/>\n     only   for\t   breach    and    non-<br \/>\n     implementation  of\t  some\tof   the<br \/>\n     clauses in the 1978 settlements but<br \/>\n     it\t was   in  respect  of\tall  the<br \/>\n     demands made  by the workmen by the<br \/>\n     notice hated  12.3.1980 and some of<br \/>\n     these demands  were in  respect  of<br \/>\n     matters   covered\t by   the   1978<br \/>\n     settlements which were in force&#8221;.<\/p><\/blockquote>\n<p>     Mr. Jitendra  Sharma, learned  counsel for the workmen,<br \/>\nhas not\t been able to persuade us to hold that the aforesaid<br \/>\nconclusion  arrived  at\t by  the  Tribuanl  with  regard  to<br \/>\nillegality of  the strike  is in  any way  incorrect. It  is<br \/>\nquite obvious  from the facts on record that the workmen had<br \/>\nresorted to  illegal strike. Without going into the question<br \/>\nas to  whether the  strike was\tjustified or  not, and\teven<br \/>\nassuming that  the Tribunal  was  right\t in  coming  to\t the<br \/>\nconclusion that\t the workmen  were  justified  in  going  on<br \/>\nstrike, the  question as  to whether  the workmen  would  be<br \/>\nentitled to  get any  wages during  the\t period\t of  illegal<br \/>\nstrike is no longer res integra.\n<\/p>\n<p>     A Constitution  Bench of  this Court  in Syndicate Bank<br \/>\nVs. K.\tUmesh Nayak,  (1994) 5\tSCC 572\t has held  that\t the<br \/>\nworkmen would  be entitled to wages for the strike period if<br \/>\nthe strike  was both legal and justified. In other words, if<br \/>\nthe strike was only legal and not justified or if the strike<br \/>\nwas illegal  and justified, the workers were not entitled to<br \/>\nwages for  the strike  period. It was observed that &#8220;Whether<br \/>\nthe  strike   was  legal   or  illegal\t and  justified\t  or<br \/>\nunjustified, were  issues which fell for decision within the<br \/>\nexclusive domain of the industrial adjudicator under the Act<br \/>\nand it\twas not\t primarily for\tthe High  Court to  give its<br \/>\nfindings on  the said  issues. The  said issues\t had  to  be<br \/>\ndecided by taking the necessary evidence on the subject&#8221;.\n<\/p>\n<p>     In view  of the  aforesaid decision and inasmuch as the<br \/>\nstrike in  the present\tcase in all the five undertakings at<br \/>\nBangalore has  been held  to be illegal, therefore, no wages<br \/>\nfor the\t strike period\tcould have been awarded in favour of<br \/>\nthe workers.\n<\/p>\n<p>     As regards lock out is concerned, even if it is assumed<br \/>\nthat here  was non-compliance with the provisions of Section<br \/>\n22 of  the Act\tat the\ttime when the lock out was declared,<br \/>\nthe conclusion\tof the\tTribunal that  the lock\t out, in the<br \/>\ninstant case,  was legal  is not  incorrect. From  the facts<br \/>\nwhich have  been stated\t hereinabove, and  as found  by\t the<br \/>\nTribunal, it  is clear\tthat the provisions of Section 24(3)<br \/>\nof the\tAct are\t attracted to  the present case. The workmen<br \/>\nhad gone  on illegal  strike and  even when  the strike\t was<br \/>\nofficially   called  off,  they\t continued  to\tdisrupt\t the<br \/>\nworking of  the factories  while being\twithin\tthe  factory<br \/>\npremises. The Tribunal held that:\n<\/p>\n<blockquote><p>     &#8220;The  managements\thave  placed  on<br \/>\n     record   sufficient   evidence   to<br \/>\n     substantiate their contentions that<br \/>\n     even though the strike was formally<br \/>\n     withdrawn and  the workmen reported<br \/>\n     for  duty,\t the  workmen  continued<br \/>\n     their  agitational\t disruptive  and<br \/>\n     violent activities\t from within and<br \/>\n     thus  in\tfact   continued   their<br \/>\n     illegal strike&#8221;.<\/p><\/blockquote>\n<p>     In view  of this,\tthe Tribunal  rightly held  that the<br \/>\ndeclaration of\tlock out  must, therefore,  be\tregarded  as<br \/>\nbeing in  consequence of  illegal strike and, therefore, the<br \/>\nlock out  would not  be deemed\tto be  illegal even  if\t the<br \/>\nprovisions of  Section 22  of the Act were not complied with<br \/>\nby the\tmanagements. This being so and applying the ratio of<br \/>\nthe Constitution  Bench decision  in SYNDICATE BANK (Supra),<br \/>\nthe workmen would not be entitled to any wages in respect of<br \/>\nthe period  of lock  out. The  award of the Tribuanl to this<br \/>\nextent is, therefore, liable to be set-aside.\n<\/p>\n<p>     It was submitted by Mr. Shetye that the Tribunal having<br \/>\nincreased the minimum wage to Rs. 500\/- it ought not to have<br \/>\ndirected that  the payment  of Rs. 25\/- p.m. may not be set-<br \/>\noff. It\t was contended\tthat by\t increasing the wages to Rs.<br \/>\n500\/- p.m.  and also allowing the workmen to retain Rs. 25\/-<br \/>\np.m. w.e.f.  1.9.1978, the effect would be that the wages of<br \/>\nthese workmen  would be\t note than  the wages  of the lowest<br \/>\nrank of\t workmen in  BHEL. As this contention relates to the<br \/>\nconstruction and effect of the settlement dated 9.6.1981, it<br \/>\nwould be  appropriate, at  this stage,\tto also consider the<br \/>\ncontention of  Mr. Sharma  on behalf  of the  workmen to the<br \/>\neffect that  the Tribunal  ought to  have revised the lowest<br \/>\nscale and  bring it  at par  with BHEL&#8217;s  scale of  pay\t and<br \/>\nthereafter, it\tshould have  revised the  higher  scales  as<br \/>\nwell. This  submission was  based on  the premise  that\t the<br \/>\nsettlement of  1978 allowed  the workmen to ask for revision<br \/>\nof pay\tscale consequent on a settlement taking place in the<br \/>\ncase of\t any other  public sector  undertaking such as BHEL.<br \/>\nWhen the  settlement in\t BHEL had  taken place\tin  January,<br \/>\n1980, the  workmen of  these five public sector undertakings<br \/>\nwere entitled to contend and demand that their pay-structure<br \/>\nshould be  revised so  as to  bring them  at  par  with\t the<br \/>\nrevised scales\tof pay\twhich were  in existence in BHEL and<br \/>\nthat the  settlement dated 9.6.1981 was without prejudice to<br \/>\nthis right and could not preclude the workers from demanding<br \/>\nthe said parity.\n<\/p>\n<p>     In the  case of  HMT and  ITI, the\t clause relating  to<br \/>\nrevision of  pay was  the one  which was incorporated in the<br \/>\nsettlement dated  25.5.1978. Term  No. 1  in  the  agreement<br \/>\ndated 25.5.1978 does not postulate revision of pay scales in<br \/>\nthe event  of higher  wages being  paid to  the employees of<br \/>\nBHEL or\t employees of  any other  public sector undertaking.<br \/>\nThis clause gives to union only a right to take up the issue<br \/>\nregarding the  minimum wages  and  enhancement\tof  rate  of<br \/>\nneutralisation of  dearness allowance with the Government of<br \/>\nIndia if  the Government  agreed to  the improvement  in the<br \/>\nminimum wages or the dearness allowance neutralisation rate.<br \/>\nAt best\t this clause only gives a right to the union to make<br \/>\na reference  to the  Government of  India  for\trevision  of<br \/>\nminimum\t wages\tbut  does  not\tgive  any  vested  right  of<br \/>\nenhancement of\twages or  pay scales  in the  event of their<br \/>\nbeing a\t revision in any other public sector undertaking. In<br \/>\nthe case  of three  other public sector undertakings namely;<br \/>\nBEL BEML  and HAL an additional clause in the settlement was<br \/>\ninserted .  In BAL  the clause\twas 1.1. In BEML, the clause<br \/>\nwas as follows:\n<\/p>\n<blockquote><p>     &#8220;If  any\tcomparable   engineering<br \/>\n     industry  in   the\t Central  Public<br \/>\n     Sector such  as BHEL  etc., revises<br \/>\n     the minimum pay and D.A. as well as<br \/>\n     the D.A. neutralisation rate beyond<br \/>\n     what   is\t agreed\t  to   in   this<br \/>\n     settlement,  the\tissues\twill  be<br \/>\n     negotiated\t    bilaterally\t     and<br \/>\n     consequential  adjustment\tmade  in<br \/>\n     the wage  structure&#8221;.\n<\/p><\/blockquote>\n<blockquote><p>     In the  case of HAL, the clause was<br \/>\n     as follows:\n<\/p><\/blockquote>\n<blockquote><p>     &#8220;If a higher minimum wage or higher<br \/>\n     rate of  neutralisation of\t CPI  is<br \/>\n     agreed   to   in\tany   comparable<br \/>\n     engineering industry  such as  BHEL<br \/>\n     in the  Central Public  Sector, the<br \/>\n     management\t agrees\t to  review  the<br \/>\n     corresponding  provisions\tin  this<br \/>\n     settlement\t and   make   consequent<br \/>\n     adjustment in the wage structure in<br \/>\n     consultation with the Union&#8221;.<\/p><\/blockquote>\n<p>     The cause\tin BEML\t contemplated bilateral negotiations<br \/>\nin case of revision taking place in the minimum pay of BHEL.<br \/>\nIn  clause  1.1\t of  BEL,  the\tmanagement  agreed  to\tmake<br \/>\nnecessary modifications\t in consultation  with the union and<br \/>\nin the\tcase of\t HAL the  management agreed  to\t review\t the<br \/>\nprovisions of  the settlement  consequent on  a higher\trate<br \/>\nbeing paid  in BHEL.  The latter  three settlements no doubt<br \/>\nmake a\treference to  a revision  of pay  scales in  case of<br \/>\nrevision of  pay in  BHEL but no such reference is contained<br \/>\nin the\tsettlements of HMT and ITI. The unions of these five<br \/>\npublic sector  undertakings were taking a joint action. They<br \/>\nraised the  demand for\tthe  revision  of  wages  after\t the<br \/>\nsettlement of BHEL had arrived at in June, 1980. The demands<br \/>\nwere raised  by the  joint action front on 12.9.1980 and the<br \/>\nsame were in the following terms:\n<\/p>\n<blockquote><p>     &#8220;1.  The  existing\t scales\t of  pay<br \/>\n     should be\trestructured  by  adding<br \/>\n     Rs. 30\/-  at the minimum and at all<br \/>\n     stages in each case.\n<\/p><\/blockquote>\n<blockquote><p>     2.\t  The irreducible  minimum  D.A.<br \/>\n     for Bangalore as on 1.9.1978 should<br \/>\n     be revised\t to Rs. 130\/- as against<br \/>\n     Rs. 125\/-.\n<\/p><\/blockquote>\n<blockquote><p>     3.\t  For  the  existing  employees,<br \/>\n     basic pay\tshould be refixed in the<br \/>\n     following manner:\n<\/p><\/blockquote>\n<blockquote><p>     (a)  Add Rs. 30\/-\n<\/p><\/blockquote>\n<blockquote><p>     (b)  Add one increment.\n<\/p><\/blockquote>\n<blockquote><p>     (c)  Add one more increment in lieu<br \/>\n     of\t next  higher  stage  (to  avoid<br \/>\n     anomalies)\t and   to  provide   for<br \/>\n     consequential adjustment benefits.\n<\/p><\/blockquote>\n<blockquote><p>     4.\t  City\tCompensatory   Allowance<br \/>\n     should be\tpaid at\t the rate  of 6%<br \/>\n     (in all places).\n<\/p><\/blockquote>\n<blockquote><p>     5.\t  The Fitment  Benefit which  is<br \/>\n     not  extended   to\t the   employees<br \/>\n     joining after the date of agreement<br \/>\n     should be extended to them.\n<\/p><\/blockquote>\n<blockquote><p>     6.\t  The arrears  on account of the<br \/>\n     above should  be  worked  and  paid<br \/>\n     with effect from 1.1.1979&#8243;.<\/p><\/blockquote>\n<p>     The settlement  of 9.6.1981 specifically dealt with the<br \/>\nclaim of  the revision of scale demanded by the workers. The<br \/>\ndemand was  for a  revision at\tthe rate  of Rs.  30\/-\tp.m.<br \/>\nw.e.f. 1.9.1978.  In view  of this,  in the settlement dated<br \/>\n9.6.1981  it   was  agreed   between  the  workmen  and\t the<br \/>\nmanagements that  all the  workers on  the pay\trolls of the<br \/>\ncompanies as  on 9.6.1781  would be  paid a  lump sum of Rs.<br \/>\n700\/-. This  clause contained  a benefit which was more than<br \/>\nwhat the  unions were  asking for.  The demand of the unions<br \/>\nwas for\t payment at  the rate  of Rs.  30\/- w.e.f.  1.1.1979<br \/>\nwhich would have meant that the employees who had worked for<br \/>\na longer  period would\thave got  more than  those  who\t had<br \/>\njoined the  service later.  Clause (ii)\t of  the  settlement<br \/>\ndated 9.6.1981\tgave a\tlump sum payment of Rs. 700\/- to all<br \/>\nthe employees  irrespective of the length of the service who<br \/>\nwere  on   the\trolls  of  the\tCompanies  as  on  9.6.1981.<br \/>\nCalculated at  the rate\t of Rs.\t 25\/- p.m.,  this sum of Rs.<br \/>\n700\/- would  amount to\tpayment in respect of 28 months i.e.<br \/>\nw.e.f. 1.9.1978\t to 31.12.1980.\t From 1.1.1981,\t the workmen<br \/>\nwere given  an ad-hoc  allowance of Rs. 25\/- p.m. It is thus<br \/>\nevident that  the claim\t which was  raised by  the unions in<br \/>\ntheir letter  of demand dated 12.9.1980 relating to revision<br \/>\nof pay\tscale stood concluded by the settlement of 9.6.1981.<br \/>\nThe demand  of the  union was more or less conceded inasmuch<br \/>\nas Rs.\t25\/- p.m.  were agreed\tto be  paid w.e.f.  1.1.1981<br \/>\ninstead of an addtional Rs. 30\/- p.m..\n<\/p>\n<p>     It was  submitted by  Shri Sharma that the terms of the<br \/>\nsettlement dated  9.6.1981 specifically\t mentioned that this<br \/>\nwas &#8220;without  prejudice to  the contentions of either party&#8221;<br \/>\nan expression  which is\t used in  the preamble\tof the\tsaid<br \/>\nsettlement. This  settlement dated  9.6.1981 in\t our opinion<br \/>\nhas to\tbe read\t as a  whole. It  has  to  be  read  in\t the<br \/>\nbackground of  the demand  which was raised by the unions in<br \/>\ntheir letter  dated 12.9.1980.\tThe main claim of additional<br \/>\namount of  Rs. 30  P.M. at  the minimum and at all stages in<br \/>\neach case,  as demanded by the workmen clearly stood settled<br \/>\nwith a lump sum payment of Rs. 700\/- and ad-hoc allowance of<br \/>\nRs. 25\/\t w.e.f. 1.1.1981  as agreed  to in the settlement of<br \/>\n9.6.1981.  The\tuse  of\t words\t&#8220;without  prejudice  to\t the<br \/>\ncontentions of\teither party&#8221;  can refer  to only such other<br \/>\npoints or aspects which were not specifically covered by the<br \/>\nterms of settlement which were arrived at on 9.6.1981.\n<\/p>\n<p>     The settlement  of 1978  was with regard to pay scales,<br \/>\nallowance and  other monetary  benefits. The  settlement  of<br \/>\n9.6.1981 brought  about a  change whereby  a sum of Rs. 95\/-<br \/>\nwas given w.e.f. 1.1.1981 in addition to lump sum payment of<br \/>\nRs. 700\/-.  Clause (iv)\t of the\t settlement  dated  9.6.1981<br \/>\nstated in  no uncertain\t terms\tthat  all  other  conditions<br \/>\nrelating to  pay allowances and other monetary benefits were<br \/>\nto &#8220;continue for the extended period of the settlement&#8221; i.e.<br \/>\nup to  31.12.1982. This would clearly show that the original<br \/>\nsettlement of  1973 with  regard to  pay-scales as  well  as<br \/>\nallowances and other monetary benefits were to continue upto<br \/>\n31.12.1982 subject  to the  increase of\t Rs. 25\/-  p.m. plus<br \/>\nlump sum  payment of  Rs. 700\/-. This settlement of 9.6.1981<br \/>\nwas arrived  at during\tthe  conciliation  proceedings\tand,<br \/>\ntherefore, was\tbinding on  the parties\t under Section 18(3)<br \/>\nread with  Section 19(2)  of the Act. The term of settlement<br \/>\ndated 9.6.1981\tdid not\t contemplate that the payment of Rs.<br \/>\n25\/- p.m.  w.e.f. 1.1.198  as liable  to be  adjusted in any<br \/>\nmanner. It  is no  doubt  true\tthat  the  Tribunal  by\t the<br \/>\nimpugned award\thas increased  the minimum,  wage to  Rs. 50<br \/>\np.m. because  the Tribunal  came to  the conclusion that the<br \/>\nsettlement dated  9.6.1981 did not preclude the workmen from<br \/>\nasking for  a revision in the minimum wage consequent on the<br \/>\nminimum\t wage  consequent  on  the  settlement\thaving\tbeen<br \/>\narrived at  in the  case of  BHEL. This\t conclusion  of\t the<br \/>\nTribunal, in our opinion, was incorrect but as leave had not<br \/>\nbeen granted  to the  management on this point, the decision<br \/>\nof the\tTribunal reviewing  the minimum\t wage at  the lowest<br \/>\nrank of\t Rs.500\/- p.m. as contemplated by the settlement, is<br \/>\npayable to  all the  workers in\t different scales of pay and<br \/>\nthe settlement\tdoes not  contemplate the  said amount being<br \/>\nadjusted in  any manner. This being so the contention of Mr.<br \/>\nShetye for adjustment of this amount cannot be accepted.\n<\/p>\n<p>     The last  question which  remains for  consideration is<br \/>\nwith regard to city compensatory allowance to the workmen of<br \/>\nI.T.I.. It  is not  in dispute\tthat prior  to the  impugned<br \/>\naward, C.C.A.  @4% was\tbeing paid to the workmen of I.T.I..<br \/>\nBy the\timpugned award\tthe Tribunal  increased the  minimum<br \/>\nwage to\t Rs. 500\/-  p.m, in  respect of BEL, BEML, H.A.L and<br \/>\nH.M.T.. The  break up  of this\tamount was  basic pay of Rs.<br \/>\n335\/- +\t irreducible D.A.  of Rs-  129.90 + variable D.A. of<br \/>\nRs. 35.10,  It was  stated in  the Award  that in respect of<br \/>\nthese four  companies, the  variable D.A.  shall be  at\t the<br \/>\nlocal consumer\tprice index  prevailing as  on 1.19.1978  at<br \/>\ndifferent units,  with quarterly  adjustments at the rate or<br \/>\n1.39 per  point or  rise or fall in the local indices. It is<br \/>\nnot disputed  that in  the  existing  wage  structure,\tcity<br \/>\ncompensatory allowance\twas not being paid to the workmen of<br \/>\nabove-mentioned four  companies because\t the local  consumer<br \/>\nprice index  used to  be higher\t than the All India Consumer<br \/>\nPrice Index.  In  view\tof  this  difference  in  the  price<br \/>\nindices, C.C.A.\t was being  paid to  the employees of I.T.I.<br \/>\nwhose rise  and fall in dearness allowance was controlled by<br \/>\nthe All\t India Consumer\t Price\tIndex.\tThe  Tribunal  while<br \/>\ndirecting that\tcity compensatory allowance will not be paid<br \/>\nto the\tI.T.I. employees  because it  is  not  paid  to\t the<br \/>\nemployees of  other public sector undertakings at Bangalore,<br \/>\noverlooked the\tfact that the local consumer price index was<br \/>\nadmittedly always  higher  than\t All  India  Consumer  Price<br \/>\nIndex. It  is for  this reason\tthat the  city\tcompensatory<br \/>\nallowance was  being paid  to the  employees of\t I.T.I.\t Mr.<br \/>\nShetye frankly\tconceded that if city compensatory allowance<br \/>\nis not paid to the employees of I.T.I. then over a period of<br \/>\ntime, the  salary of workmen of I.T.I. would be less than be<br \/>\nsalary\tof  the\t workmen  of  other  companies\tbecause\t the<br \/>\nvariable dearness  allowance of\t employees of B.E.L, B.E.M.L<br \/>\nand H.M.T.  will increase at a higher rate than the variable<br \/>\ndearness allowance  of I.T.I. employees which is linked with<br \/>\nthe rise  or fall  in All India Consumer Price Index. In our<br \/>\nopinion, therefore, the direction of the Tribunal dispensing<br \/>\nwith the  payment of  city compensatory\t allowance to I.T.I.<br \/>\nemployees was uncalled for.\n<\/p>\n<p>     From the  aforesaid discussion,  we conclude  that\t the<br \/>\nworkmen would  not be  entitled to  receive any wages during<br \/>\nthe period  of illegal\tstrike and  lock out; the payment of<br \/>\nRs. 25\/-  as a\tresult of  settlement dated  9.6.1981 is not<br \/>\nadjustable and\tthe direction  of the  Tribunal not to allow<br \/>\ndemand of  city compensatory  allowance to  the\t workmen  of<br \/>\nI.T.I. was  not correct. The Award of the Tribunal directing<br \/>\npayment of  35% of  the wages  during the  period of illegal<br \/>\nstrike and  lock out  and the  decision with  regard to non-<br \/>\npayment\t of   city  compensatory   allowance  to  I.T.I.  is<br \/>\naccordingly,  modified\tto  that  extent.  The\tappeals\t are<br \/>\ndisposed of  in the  aforesaid terms.  Parties to bear their<br \/>\nown costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India H.M.T. Limitedwormen Of Indian &#8230; vs H.M.T. Head Office Employees&#8217; &#8230; on 29 October, 1996 Author: Kirpal Bench: J.S. Verma, B.N. Kirpal PETITIONER: H.M.T. LIMITEDWORMEN OF INDIAN TELEPHONE INDUSTRIES LTD. AND Vs. RESPONDENT: H.M.T. HEAD OFFICE EMPLOYEES&#8217; ASSO. AND ORS.THE MANAGEMENT O DATE OF JUDGMENT: 29\/10\/1996 BENCH: J.S. VERMA, B.N. KIRPAL [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-15932","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>H.M.T. Limitedwormen Of Indian ... vs H.M.T. 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