Law:

Section:

(a) Employees Cost of Living (Relief) Act, 1973 (I of 1974)-- ---S. 3(5)--Industrial Relations Ordinance (XXIII of 1969), S. 50--Settlement reached between petitioner-company and respondent-union--Interpretation of such settlement adjustment of amount of increase in wages--Settlement clause was a deeming clause which indicated that factually the increase was on account of normal increase in wages on account of annual increment--Amount of increase is also not even inter se between the unskilled on one hand and the skilled and semi-skilled on the other--Contention that increase was on account of increase in the cost of living allowance, repelled--Vice- taken by appellate forum being not perverse, petition was dismissed. R. B. Industries Limited v. Employees' Welfare Union P L D 1983 S C 15 ref. (b) Interpretation of document-- ---Clause in settlement between employer and C.BA.--When there arc two interpretations possible to a clause, one which favours the workmen is to be preferred over the one which favours the employer. JUDGMENT AJMAL MIAN, C.J.,--This petition is directed against the order dated 28-4-1952, passed by respondent 2, i.e. Sind Labour Appellate Tribunal, upon petitioner's application under section 50 of the I.R.O., for interpretation of the Settlement dated 26-4-1981 (hereinafter referred to as the Settlement) entered into between the petitioner and respondent 1, the then Union, for the period commencing farm 1-4-1981 to 31-3-1983. The point in issue before respondent 2 was, whether the petitioner was entitled to adjust the amount of increase in wages under the Settlement while computing cost of Living Allowance tinder subsection (5) of section 3 of the Employees' Cost of Living (Relief) Act, 1973, respondent 2 has held that the have increase in wares was normal annual increase in wages and, therefore, was not liable to be adjusted. The petitioner being aggrieved by the above order, has filed the present petition. 2. In support of the above petition, Mr. Ali Amjad, learned counsel for the petitioner, has vehemently contended that in presence of an express clause in the Settlement to the effect that the above increase during the Settlement period…

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