AHMEDABAD MILL OWNERS' ASSOCIATION ETC. vs THE TEXTILE LABOUR ASSOCIATION

The Supreme Court addressed the applicability of Sections 42 and 73 of the Bombay Industrial Relations Act, 1947, in a dispute regarding the payment of dearness allowance based on the consumer price index. The Court held that the Industrial Court's decision to adopt the linking factor of 3.17 for calculating dearness allowance was valid, as the necessary procedures under Section 42 were followed. The Court affirmed the Industrial Court's award, directing the appellants to pay the dearness allowance according to the adjusted index numbers published by the State Government.