WORKMEN OF GUJARAT ELECTRICITY BOARD,BARODA vs THE GUJARAT ELECTRICITY BOARD, BARODA

The Supreme Court upheld the Industrial Tribunal's decision rejecting the demands of employees for increased dearness allowance, finding that the appellants failed to demonstrate that their total wage package would not meet the minimum wage requirement. The Court ruled that the financial capacity of the Board, which inherited a deficit of over Rs. 2 crores and sustained heavy losses, was a relevant consideration in assessing the demands. The Tribunal's conclusion that the Board's financial situation precluded the payment of additional allowances was affirmed, distinguishing the Board's circumstances from those of private sector employers.