MANAGEMENT OF SHRI CHALTHAN VIBHAG KHAN UDYOG SAHAKARIMANDA vs B.S. BAROT MEMBER, INDUSTRIAL COURT, GUJARAT, AND ANR. ETC.

The Supreme Court held that the grant of variable dearness allowance exceeding 100% is impermissible under industrial law, as it constitutes more than mere neutralization of cost of living increases. The Court clarified that dearness allowance is intended to offset the rise in living costs, and any amount beyond 100% would effectively increase wages, which is not the purpose of such allowances. Additionally, the Court emphasized that while determining wages and allowances, the financial capacity of the industry must be assessed, taking into account all relevant factors, including taxes and depreciation as per Section 66(1) of the Gujarat Cooperative Societies Act, 1961.