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Pee Vee Textiles Ltd. v. State of Maharashtra

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 1497 of 2011)Decided 10 Dec 2014
Civil Appeal No. 1497 of 2011
Justice V. Gopala Gowda · Justice C. Nagappan

Background

Textile workers sought variable dearness allowance under government minimum wage notifications. Their employer opposed referring the dispute to the Industrial Tribunal, arguing that existing wage settlements barred fresh demands. The High Court upheld the government's reference after conciliation failed.

Decision Breakdown

The Supreme Court dismissed the employer's appeal and upheld the reference. The settlements did not cover the allowance claimed by these workers, and the government's statutory power to refer an unresolved industrial dispute was not defeated by the employer's reliance on the settlements. The employer was ordered to pay the workers ₹1 lakh in costs within four weeks, and the Tribunal was directed to decide the dispute within six months. If the workers succeeded, the Tribunal was to award interest on their allowance benefits at a nationalised bank's fixed deposit rate; the Supreme Court did not itself calculate or finally award the disputed allowance.

Lesson Learnt

A wage settlement does not necessarily prevent workers from raising a statutory allowance claim it leaves unresolved. A lawful reference permits the labour tribunal to decide entitlement and the amount payable.

Official source (sci.gov.in)View Judgment (PDF)

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