BENGAL CHEMICAL & PHARMACEUTICAL WORKS LTD. vs ITS WORKMEN

The Supreme Court upheld the principles for fixation of dearness allowance, emphasizing that full neutralization is typically not granted except to the lowest class of employees, and that dearness allowance should be on a sliding scale based on the cost of living. The Court affirmed the Industrial Tribunal's award which provided for a sliding scale for dearness allowance and modifications to the gratuity scheme, including raising the age of superannuation from 55 to 58 years. The appeal by the company was dismissed, while the workmen's appeal was not pressed, thus confirming the Tribunal's decision.