TMI Blog1976 (12) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... ident Fund Commissioner. Dhrangadhra Chemical Works Kamdar Sangh (hereinafter to be described as the union) is the first respondent. The second respondent is Dhrangadhra Chemical Works (hereinafter to be described as the employer). With respect to the dearness allowance (D.A.) of the workers under the employer there was a reference No. 70/70 before the Industrial Tribunal at Ahmedabad. The parties had arrived at a settlement of the said industrial dispute and an award was passed in terms of the settlement. According to the award the employer was to pay D. A. to its employees at the rate of the quarterly average cost of living index as settled by the Simla Bureau, popularly known as "All India Consumers Price Index " for the relevant quar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dearness allowance' means such dearness allowance as may be sanctioned from time to time, after the appointed day, over and above the amount of dearness allowance payable in accordance with the rate in force immediately before the date from which such sanction of additional dearness allowance is to take effect. Explanation I.-- Where payment of dearness allowance is linked to a cost of living index or any other factor, any automatic payment, after the appointed day, of dearness allowance in consequence of any rise in such cost of living index or in consequence of any change in such other factor shall, notwithstanding the provisions of this clause, be deemed to be the additional dearness allowance ". It is clear under section 2(b) tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted the contention of the union and allowed the application under article 226 of the Constitution granting a mandamus restraining the employer from deducting additional D.A. from the emoluments of the employees. The High Court also granted certificate to appeal to this court. It is common knowledge that when D.A. is linked to a cost of living index, actual determination of the D.A. takes place after the index is published and known. The index, therefore, is always of a past period by the yardstick of which D.A. is adjusted. This being the concept about linkage of D.A. to cost of living index, Explanation I makes it clear that when payment of D.A. is linked to a cost of living index any automatic payment after the appointed day of D.A. in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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