Law:

Section:

(a) Employees' Cost of Living (Relief) Act, 1973 (I of 1974)- ---S. 3 (5) [as inserted by Employees Cost of Living (Relief) (Amend­ment) Ordinance (XXV of 1981)]-Set-off against increases under settlement-Settlement arrived at after protracted negotiations and conciliation proceedings providing increase in basic wages and con­veyance allowance to all workers-No direct or circumstanital evi­dence to establish positively or even impliedly that such increases were to provide relief against rise in cost of living-Presumption, in circumstances, held, would appear that issue of rise in cost of living apparently did not figure in negotiations-Mere fact that there bad been a large increase and no reason therefor specifically mentioned, held, not sufficient for inference that increases must have been on account of rise in cost of living-In absence of any tangible evidence it cannot be said that increase in wages or allowances given in a settlement must have been on account of rise in cost of living­-Benefit of ambiguity to be given to employees and employer, in circumstances, held, not entitled to benefit of set-of. Prince Glass Works Limited v. Workers' Welfare Union 1982 P L C 984 ref. Azad Friends & Company Limited v. Employees' Union 1982 P L C 825 and New Jubilee Insurance Company Limited v. District Judge, Karachi, 1981 P L C 566 rel. (b) Employees' Cost of Living (Relief) Act, 1973 (I of 1974)-- --S. 3 (5) [as inserted by Employees' Cost of Living (Relief) (Amendment) Ordinance (XXV of 1981)]-Increase in wages and allowances by settlement-Set-off-Settlement reached after date of promulgation of Employees Cost of Living (Relief) (Amendment) Ordinance, 1981 as a result of negotiations commenced much earlier-Settlement providing that rights enjoyed by workers in the post or in future under any law or rules or Government would not be affected by benefits conferred under the Settlement-Employer, in circumstances, held, had waived his right to set-of cost of living allowance admissible under the Ordinance against increases pro­vided under the settlement. New Jubilee Insurance Employees' Union v. Sind Labour Court 1982 P L C 1012 distinguished. Abid Puri for…

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