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The Union modified its demands but even the modified terms,according to the Tribunal,appeared to be on the high side inasmuch as the resulting total burden of Rs.1.70 crores was much higher than the average profits could sustain | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The particular character of the appellant,that it was a service industry and not a manufacturing concern,was taken into account and it was observed that unlike a manufacturing business there was little scope for diversification in the case of an engineering consultancy | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Nonetheless,the Tribunal observed,there was every reason to expect that the appellant would be able to earn sound profits in the future,and the instability in its business activities occasioned by the turbulent political situation in Iran,would be,it was expected,compensated by contracts secured in different developing countries | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
For the purpose of determining the financial capacity of the appellant,the Tribunal followed Unichem Laboratories v | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Their Workmen 1972 Indlaw SC 18(1) where it was held that the gross profits should be computed without making deductions on account of taxation,development rebate and depreciation | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It decided also that there was no ground for deducting the notional value of gratuity | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Revising the figures on that basis,it computed the annual gross profits for the years 1968 to 1977 and determined the annual average at Rs.26.69 lakhs | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The Tribunal took note of the elaborate scales of wages already existing in the wage structure of the appellant and decided "to modify the existing structure of the scales with flat increases in each category | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It also observed that the category of Draughtsmen needed a special increase | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
But it rejected the demand of the Union for dearness allowance on the basis of a slab system,because that would have imposed an unacceptable burden on the appellant's financial capacity and there was no reason why the existing scheme of dearness allowance should be disturbed when a substantial increase was being made in the level of the basic wage | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Taking into account the circumstance that besides the staff of 306 workmen represented by the Union there were several other employees who would also have to be paid,the Tribunal considered it fair,in paragraph 23 of the award,to give a flat increase of Rs.150/-in the category of Draughtsmen and Rs.100/-in the case of other categories | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It rejected the demand of the Union for abolishing the Efficiency Bar,but the span of 15 years for earning increment was expanded in some grades to 20 years and some adjustments were also made in specific grades | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The Tribunal also noted that after the salaries of the employees had been fixed in the respective scales,senior employees would have to be given some more increments in the new scales according to their completed years of service | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Taking all these factors into consideration,it made an award dated 20th December,1978 prescribing the following revision in the existing scales of wages | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The Tribunal maintained the existing schemes of dearness allowance and house rent allowance,and observed that in view of the revised basic wages there would be a resultant increase in the dearness allowance and house rent allowance | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The revised wage scales,the Tribunal directed,should take effect retrospectively from 1st January,1976.It also laid down the principle enabling the actual fitment of the workmen in their respective wage scales as on that date and also provided for the number of increments to which they would be entitled having regard to the period of completed service | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Two days after the award was made,an application was made by the Union stating: "In the said award,your Honour has observed,at the end of para 22,"In view of the increase that is being allowed in the basic pay,I do not propose to revise the existing scheme of Dearness Allowance | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Further,it appears that the Tribunal intended to grant the increase of Rs.150/-to each draughtsman and Rs.100/-to all other workmen in their basic pay | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
However,this is not clearly mentioned anywhere in the award due to accidental slip or omission | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The Union prayed that the position may be clarified and the award corrected accordingly | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
On the same date,the Tribunal disposed of the application by the following order: "There can be no doubt that a flat increase of Rs.150/-to each of the employees in the category of Draftsmen and of Rs.100/-to each employee in the other categories has been granted under my award | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The same has been made clear in paragraph | Ruling by Lower Court | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
No.23,but it appears that the words "to each employee" after the figure "Rs.150/-" were omitted | Ruling by Lower Court | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Similarly,the same words "to each employee" after the figure "100" were omitted | Ruling by Lower Court | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
When the award is sent for publication,a necessary corrigendum be made in the award and the aforesaid words after the figures Rs.150/-and Rs.100/-be added | Ruling by Lower Court | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It may be mentioned that only from that point of view viz.to grant flat increase of Rs.150/-and of Rs.100/-to the employees in the category of Draftsmen and the other categories respectively that a burden statement was called for from the company and the same was submitted (vide Ex | Ruling by Lower Court | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
C-51).The fitment has also to be done only after the flat increase is added to the present basic salary of each employee | Ruling by Lower Court | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
I do not think that any problem would arise for interpretation of the award | Ruling by Lower Court | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Since the award has been already signed,I do not think anything further can be added to this award | Ruling by Lower Court | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Sd/-K.N.Wani INDUSTRIAL TRIBUNAL | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
In this appeal,the learned counsel for the appellant had covered a wide field,but in the end he states that the appellant is aggrieved by two matters only | Argument | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
One is the retrospectivity attached to the revised wage scales,and the other is the flat increase given to each employee of Rs.150/-in the category of Draughtsmen and Rs.100/-in other categories resulting from the order dated 22nd December,1978 | Argument | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The workmen have filed an appeal by special leave,Civil Appeal No.2300 of 1979,in which they have challenged the rejection by the Tribunal of their claim in respect of dearness allowance which,they contend,should be pegged to the cost of living index and should not be a fixed amount | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Considering the appeal of Tata Consulting Engineers first,the contention of learned counsel for the appellant is that having regard to the financial capacity of the appellant the Tribunal erred in making the wage scales retrospective and,in any event,in ranging the retrospectivity back to 1st January,1976 | Argument | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
We have been taken through some of the material on the record in the attempt to support the contention,but after giving careful thought to the matter,I think there is ample justification for what the Tribunal did | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It must be remembered that although the wage scales were introduced as long ago as 1973 they were maintained at that level except for a slight revision some time thereafter | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
No dearness allowance was paid until the beginning of 1977 and the house rent allowance also was introduced about that time | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The cost of living had gone on increasing from 1972 onwards and,as the Tribunal has found,the dearness allowance and house rent allowance made no appreciable impact in neutralising the increasing cost | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
During all these years,the appellant had continued to enjoy increasing profits; nonetheless the emoluments received by the workmen did not receive the impress of the appellant's growing prosperity | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The Charter of Demands was presented by the Union in July,1974 and when conciliation proceedings failed the State Government made the reference to the Industrial Tribunal in 1975.The Tribunal has referred to various considerations which prevailed with it in giving retrospectivity to the revised pay scales | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
They are considerations which cannot be ignored | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Accordingly,the contention raised on behalf of the appellant against retrospectivity of the wage scales must be rejected | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The challenge embodied in the second contention against the amendment of the award is more serious | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It is urged that the amendment results in the inclusion of a flat increase of Rs.150/-to each workman in the case of Draughtsman and Rs.100/-to each workman in the case of other categories,a result wholly unwarranted,it is said,by the intent of the original award and,therefore,falling beyond the jurisdiction of the Tribunal | Argument | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
In making the application of 22nd | Statute | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
December,1978,the Union invoked the jurisdiction of the | Statute | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Tribunal under rule 31 of the Industrial Disputes (Bombay) Rules,1957.Rule 31 provides: "The Labour Court,Tribunal or Arbitrator may correct any clerical mistake or error arising from an accidental slip or omission in any award it or he issues | Statute | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The jurisdiction given to the Tribunal by rule 31 is closely circumscribed | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It is only a clerical mistake or error which can be corrected,and the clerical mistake or error must arise from an accidental slip or omission in the award | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
An accidental slip or omission implies that something was intended and contrary to that intention what should not have been included has been included or what should have been included has been omitted | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It must be a mistake or error amenable to clerical correction only | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It must not be a mistake or error which calls for rectification by modification of the conscious adjudication on the issues involved | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Is the instant case one where the amendment made by the Tribunal in the original award can be said to correct a mere clerical mistake or error arising from an accidental slip or omission | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
To answer the question,it is necessary to examine the basis of the award and the intent which flows from that basis | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The terms of reference in the State Government's order required the Tribunal to revise the scales of pay and dearness allowance,and there was no mention of giving any ad hoc increase in the basic pay of individual workman | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It would do well to recall that the claim of the Union filed before the Tribunal also centered on the need to revise the wage scales | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
That was the main issue between the parties | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It is to the task of revising the pay scales that the Tribunal addressed itself,and throughout the material part of the award it is that task which held its focussed attention | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The financial capacity of the appellant,and the related study of its annual profits from 1968 to 1977,were examined from that view point | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The sufficiency of the existing pay scales was considered in detail,and regard was had to their original structure and the accretions made subsequently by way of dearness allowance and house rent allowance | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
For the purpose of restructuring the pay scales the Tribunal ruled on the paying capacity of the appellant,both with reference to the profits of the preceding year as well as the prospects of the future | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The financial capacity,as the Tribunal observed,constituted one of "the principles which are required to be followed in the fixation of the wage structure | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
A clear statement of its intention is found in paragraph 22 of the award,where the Tribunal stated: "I only propose to modify the existing structures of the scales with flat increases in each category | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
No ad hoc increase to the pay of each individual workman was intended | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
And that is confirmed by what was stated in paragraph 23 of the award: "Considering this outgoing the flat increase of Rs.150/-in the category of Draughtsman and Rs.100/-in the case of the other categories would be fair | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It will be noted that the pay scales of different categories were being restructured,and the flat increase envisaged there related to an increase in the general pay scales of different categories | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Individual workmen were not present to the mind of the Tribunal | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
That the increase was pertinent to the general pay scales in the revised wage structure is patently clear from a comparison of the existing pay scales and the revised pay scales | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The comparative table of existing pay scales and the revised pay scales has been reproduced earlier | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The revised pay scales of all categories,except the category of Draughtsmen,shows an increase of Rs.100/-in the initial pay fixed in each scale,the increase in the case of the category of Draughtsmen being Rs.150/-.There was only one increase contemplated in the award,in paragraph 23 of award,and it is more than plain that the increase was the one incorporated in the revised pay scales pertaining to different categories | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
No second flat increase was envisaged at all | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The amendment made by the Tribunal has the effect of providing a second increase,this time to each individual workmen | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
If,as the Tribunal has stated in the amendment order,the increase in paragraph 23 was intended to apply to each individual workmen,there is nothing in the body of the award to form the foundation on which the actual figures in the restructured pay scales can be made to rest | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
There will be no explanation why the initial start of the revised pay scales has been increased by Rs.150/-in the case of the category of Draughtsmen and Rs.100/-in the case of other categories | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Considering the fitment of the workman in the revised scales,it was stated in the award that a workman found drawing a salary less than the beginning of the grade would be stepped up to the beginning of the grade and if his pay fell between two steps in the reclassified pay scales the basic pay was to be fixed at the step higher in the revised scale | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Conspicuous by its absence is any reference to a flat increase in the pay of an individual workmen | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Even when considering the range of permissible retrospectivity the Tribunal stated in the award: "In view of the revision of the wage scales,there would be consequent increase in the dearness allowance and the house rent allowance | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
And the clinching circumstances of all is that the award was made on the basis that the overall financial load according to paragraph 33 of the award would be to the tune of about Rs.5 lakhs | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It was that figure which the Tribunal had in mind against the backdrop of the gross annual figures when it made the revised pay scales retrospective from 1st | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
January,1976.This liability taken with the liability accruing on the need to increase the salaries of the other staff determined the Tribunal's deliberations in regard to the several features of the award,including the grant of increments related to completed periods of service,the expansion of the span from 15 years to 20 years for earning increments,and other benefits | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It cannot be the case of the Union that the figure of Rs.5 lakhs mentioned in paragraph 33 of the award represented the result of adding a flat increase to the pay of each workman in addition to the benefits conferred by the revised pay scales and other awarded reliefs | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
In its order of 22nd | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
December,1978,the Tribunal has referred to the statement (Exhibit C-51) filed by the appellant when called upon to indicate the increased financial burden apprehended by it | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The Tribunal has relied on this statement as evidence showing that the appellant knew that a flat increase of Rs.150/-and Rs.100/-was intended to each of the employees in the category of Draughtsmen and the other categories | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
In so construing the statement,Exhibit C-51,the Tribunal has grievously erred | Facts | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It seems from a perusal of the document,Exhibit C-51,that it is a statement giving trial figures of the increased financial load on different bases | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
On the basis that a sum of Rs.150/-per month was added to the pay of each Draughtsman and a sum of Rs.100/-was added to the pay of every other workman,who belonged to the Union staff,the financial load would increase to Rs.9,22,032/-.Likewise,if a flat increase of Rs.100/-was given to individual workmen of all categories,including Draughtsmen,the increased financial load would total Rs.7,64,256/-.The statement then goes on to indicate that if a flat increase of Rs.75/-per month were given to individual workmen of all categories the total increase would be Rs.5,78,220/-.Again,if the flat increase is Rs.65/-per month to the individual workmen of all categories,the additional load would total Rs.4,97,772/-.Finally,on the basis that the individual Draughtsman would be given an increase of Rs.75/-per month and the individual workmen of other categories Rs.50/-per month,the additional load was calculated at Rs.4,63,092/-.It will be noted that the statement,Exhibit C-51,was prepared on the basis of the employees' strength as in December,1971.A similar statement was prepared on the basis of the employees' strength as in September,1978.These statements cannot be regarded as evidence that the appellant was cognizant of the intention of the Tribunal to provide a flat increase to the pay of each workman | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The statement afforded an indication merely of what the additional financial load would be if a flat increase was given to the individual workman on the alternative basis set forth therein | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
None of the alternatives was actually adopted by the Tribunal,because when the award was made the Tribunal proceeded instead to restructure the wage scales by the addition of Rs.150/-in the case of the category of Draughtsmen and Rs.100/-in the case of other categories to the initial pay in the wage scales pertaining to those categories | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The addition was integrated as a feature of the wage scales; it was not regarded as an addition to the pay of each individual workman | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It seems that the Tribunal was betrayed by a curious confusion in accepting the plea of the Union that a flat increase to the pay of each workman was intended in the original wage and,consequently,it fell into the error of amending the award | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The evidence contained in the award throughout provides incontrovertible proof that this flat increase was never originally intended in the award | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The amendment has resulted in the Tribunal making,as it were,a supplementary award,whereby a further relief is being granted beyond that granted in the original award | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The original award was completed and signed by the Tribunal,and it cannot be reopened now except for the limited purpose of Rule 31.In travelling outside and beyond the terms of the original award,the Tribunal has committed a jurisdictional error | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
Our attention has been drawn to what purports to be an endorsement by counsel for the appellant on the application dated 22nd December,1978 filed by the Union before the Tribunal to the effect that the appellant would submit to whatever the Tribunal decided,and it is urged that the appellant is bound by the order made on the application | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
It is an accepted principle that consent by a party cannot confer jurisdiction on a court | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
What is without jurisdiction will remain so | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
In the circumstances the order of 22nd December,1978 is invalid so far as it amends paragraph 23 of the original award | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The corrigendum amending the award in consequence is liable to be quashed | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |
The second contention of the appellant is entitled to succeed | Ratio of the decision | Analyze the sentence and predict in which semantic role does this come under in Indian legal context |