KILLICK NIXON LIMITED vs KILLICK & ALLIED COMPANIES EMPLOYEES UNION

The Supreme Court addressed the issue of imposing a ceiling on Dearness Allowance (D.A.) for employees, ruling that while a ceiling is not a common practice, it is not inherently irrational or unjust. The Court emphasized that the decision to impose or remove a ceiling must consider various factors, including wage scales, economic conditions, and the company's ability to bear costs. The Tribunal's removal of the ceiling was upheld, reinforcing the need for fair compensation aligned with living costs and social justice principles.