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TMI Blog1970 (3) TMI 174X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.50 per month with effect from 1st February, 1964 in the cost of living allowance, payable to the workers from the respective dates over what had been previously allowed by Shri J. K. Tandon himself under the Tandon Award No. 1 , dated 23rd March, 1963. 2. Even previously there had been an award, in August, 1944, by one Shri Abdul Shakur, a Labour Officer, who had directed the workers of the said railway should get dearness allowance on the same scale as may be in force from time to time in the North - Western Railway in addition the administration making available to its employees, throughout the whole length of the land from Shahranpur to Shahdara, cheap grains at the rates charged by the North - Western Railway in the quantities fixed by the Rationing Authorities of Saharanpur as well as some other essential commodities which were supplied at the rates in force to the North - Western Railway employees. After the partition of the country, a part where the North - Western Railway was operating, became the territory which is now Pakistan; the portion situated in India now became separate known as the Northern Railway. 3. In February, 1948, as a result of fresh demands by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rence dated 30th July 1964 of the Central Government, Ministry of Labour Employment, referring the dispute as to dearness allowance, was itself made by the Government of India at Delhi. In addition to the same the said award has been published in Delhi and is also enforceable by the Central Government. It was held by the Division Bench of the Bombay High Court in Damaomal Kausomal Raisinghani v. Union of India, AIR1967Bom355 that the Bombay High Court could exercise jurisdiction under Article 226 if the effect of the order by the Government authority at Delhi fell on the petitioner at Bombay. The previous Division Bench decision of the same High Court in W. W. Joshi v. State of Bombay, AIR1959Bom363 was followed. 7. My attention was drawn, on behalf of the workers, to the decision of the Division Bench of this court in Shiv Shanker Lal Gupta v. Commr. of Income Tax Bombay, Air 1968 Delhi 295. In that case the person whose premises were searched and documents and money recovered by an order of the Income Tax Commissioner Bombay under Section 132(1) if the Income Tax Act invoked the writ jurisdiction of this Court on two grounds: (1) that he was challenging the validity of ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wance granted earlier under Tandon Award No. 1 had become one of the conditions or terms of service concerning the dearness allowance payable to the employees of the S. S. Railway. It was stated by Shri Gokhale, who appeared for the management, that despite the award the railway had been paying the dearness allowance, etc. at a rate even higher than what has been awarded under Tandon Award No. 2. He referred, however, to the finding of the Tribunal concerning the financial condition of the S. S. Light Railway. It would be best to set out what the Tribunal found in its own words concerning the financial position of the Railway: The crucial thing to consider is whether the economic condition of the Undertaking is such that a frantic action, namely, the cutting down further of the already meagre wage packet of the workmen is but the alternative to save the situation and the Undertaking. Tribunals have some times interfered with contracts but they would refuse to do so unless there are some really strong, dominant and compelling reasons with no alternative otherwise to save the situation. From the material before me I am unable to come to the conclusion that the present is a cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Tandon Award No. 1, I amendment informed, the matter was unsuccessfully taken to the Supreme Court. 14. Though the present writ petition raised the ground that the dearness allowance fixed by the Tandon Award could not become a condition of service, as held by Shri Tandon, after some discussion of this question, Shri Gokhale fairly conceded that he would not be able to substantiate this ground in view of what the Supreme Court has decided in South Indian Bank Ltd. v. A. R. Chacko, (1964)ILLJ19SC . It is sufficient to cite Head-note (c):- Even if an award has ceased to be in operation or in force and has ceased to be binding on the parties under the provisions of Section 19(6) it will continue to have its effect as a contract between the parties that has been made by industrial adjudication in place of the old contract till this new contract is displace by a fresh contract. 15. The principle on which dearness allowance has to be granted are now well settled. It was observed by Gajendragadkar, C. J., speaking for the Supreme Court in Ahmedabad Mill owner's Association v. Textile Labour Association, Ahmedabad, [1966]1SCR382 that in trying to recognise and give effect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scale and provide for an increase on the rise in the cost of living and a decrease on a fall in the cost of living. (3) The basis of fixation of wages and dearness allowance is industry-cum- region. (4) Employees getting the same wages should get the same dearness allowance, irrespective of whether they are working as clerks or members of subordinate staff of factory-workmen. (5) The additional financial burden which a revision of the wage-structure or dearness allowance would impose upon an employer, and his ability to bear such burden, are very material and relevant factors to be taken into account. 17. In view of the said principles, and in the face of what is admitted, namely, that the workmen of the S. S. Light Railway have been paid more dearness allowance than what had been ordered by the impugned award; clearly no case is made out for quashing the said award. Since it is seen that once of the Industrial Tribunal adjudicating on a dispute the said term regarding a condition of the service any vital change in the financial position of the management could be set up only by asking for yet another adjudication on the basis of such altered circumstances employers to ..... 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