WORKMEN EMPLOYED BY INDIAN OXYGEN LTD vs INDIAN OXYGEN LTD.

The Supreme Court held that the dearness allowance for workmen of the Kanpur unit of the Company should be linked to the all-India consumer price index for Kanpur (1960-100) as compiled by the Labour Bureau, Simla, and not to the all-India average consumer price index. The Court found that the Tribunal erred in accepting a collusive settlement as the basis for revision of the dearness allowance. The judgment emphasized that uniformity must be among equals and that the principle of 'equal pay for equal work' must be upheld under the U.P. Industrial Disputes Act, 1947.