THE SILK AND ART SILK MILLS' ASSOCIATION, LTD. vs MILL MAZDOOR SABHA

The Supreme Court upheld the Industrial Court's award granting dearness allowance to employees in the Silk and Art Silk Textile Industry, as per the Bombay Industrial Relations Act, 1946, specifically sections 27 and 3(23). The Court found that the award was based on the financial capacity of 28 employer units that provided their accounts, and no adverse inference was drawn against those that did not. The Court concluded that the industry was financially stable, with profits averaging over 40%, and dismissed claims regarding the adverse effects of excise duty without sufficient evidence.