PRECISION BEARINGS INDIA LTD. vs BARODA MAZDOOR SABHA AND ANR.

The Supreme Court held that the revision of dearness allowance must consider the additional financial burden on the employer, as established in Bengal Chemical & Pharmaceutical Works Ltd. v. Its Workmen [1969] 2 S.C.R. 113. The Court found that the Tribunal exceeded its jurisdiction by granting varying percentages of dearness allowance beyond the 100% of Ahmedabad Textile D.A. as referred by the Government. The appeal was allowed in part, affirming the need for the Tribunal to adhere strictly to the reference made.