1. Since common questions are involved in both the writ applications, they have been heard together and are being disposed of by this common judgment.
2. The principal point is that the Government of Bihar in revising variable dearness allowance (V.D.A) at 4 paise per point of increase in the cost of living index per day has exceeded its jurisdiction and authority. In Civil Writ Jurisdiction Case No. 910 of 1981 (R), the notification of the Government of Bihar, dated 24 February, 1981 (annexure 1), has been challenged, whereby it has revised the V.D.A at 4 paise per point of increase in the cost of living index per day. Earlier V.D.A was fixed at 2 paise per point of increase in the cost of living index per day. As a result of the said revision on N.L.A on the basis of the said notification, neutralisation will be more than 120 per cent and, therefore, it is challenged that in revising V.D.A the Government has exceeded its jurisdiction.
3. The effect of the said notification on the computation of V.D.A is explained on the basis of the figures disclosed by the respondents in Para. 7 of the counter-affidavit. Hence the figures are not disputed. To take an illustration in the case of Road Construction and Building Operations (annexure 1 of the rejoinder to the counter-affidavit filed on behalf of the petitioner) it will appear that on the basis of the consumer price index of July—December 1980, the cost of living index is 403 for April 1981, (i.e, the period after 24 February 1981, being the date of notification). Compared to the cost of living index for the preceding period, the increase in cost of living index is 27 point (i.e, 403 on the basis of July— December 1980, consumer price index 375 points on the basis of January to June 1980 consumer price index). This increase of 27 points in the consumer price index is in terms of percentage 7.8 per cent compared to the consumer price index of the earlier period, i.e, February 1981. If the V.D.A is to be fixed on the basis of the impugned notification, the said V.D.A will be 27 × 4 paise, i.e, Rs. 1.08 per day. Thus there has been an increase of V.D.A at 14 per cent compared to the total wages of Rs. 7.68 for the just preceding period, i.e, February 1981 (for which the consumer price index is the period January to June 1980). Thus, while the increase in the consumer price index is 7.18 percent increase in the V.D.A is 13.70 per cent, i.e, much more than 100 per cent (i.e 190.80 per cent). Similarly, on the basis of the consumer price index for January to June 1981 the cost of living index is 425 and there has been an increase of 22 points compared to the cost of living index for the just preceding period. In terms of percentage, the cost of living has been increased by 5.46 per cent. If the V.D.A is to be fixed at 4 paise per point per day, it comes to 0.88 paise per day and in terms of percentage, the increase in V.D.A is by 9.82 percent. Hence, while the cost of living index has increased by 5.46 per cent the V.D.A has increased by 9.82 per cent, i.e, 179.9 percent neutralisation. Similarly, on the basis of the consumer price index of July to December 1981, there has been an increase of 32 points compared to the cost of living index for the just preceding period. In terms of percentage there has been an increase of 7.53 per cent in the consumer price index. By fixing the V.D.A at 4 paise per point, the V.D.A comes to Rs. 1.28 per day. The increase in the V.D.A is, therefore, by 13.01 per cent. This, while the consumer price index has increased by 7.53 per cent, the VDA has increase by 13.01 per cent which is 172.8 per cent neutralisation. Similarly, for the other periods also the increase in the V.D.A exceeds 100 per cent of the cost of living index.
4. For the loading and unloading (vide annexure 1A to the rejoinder filed by the petitioner to the counter-affidavit, dated 9 November 1984), the consumer price index of January to December 1980 is 390. For the preceding period on the same basis, the consumer price index was 350. Hence there has been an increase of 40 points in the consumer price index. In terms of percentage, the increase comes to 11.43 per cent, by fixing V.D.A at 4 paise per point, it amounts to Rs. 1,60 (40 per cent 4 paise) per day. In terms of percentage, the increase in V.D.A compared to the preceding period is 25.92 per cent. While the consumer price index has increased by 11.43 per cent, the V.D.A has increased by 24.92 per cent which is 218 per cent neutralisation.
5. Similarly, if the consumer price index of January to December 1981, is taken into account, the increase in the consumer price index is 51 points, i.e, 13.08 per cent. But the V.D.A on the basis of the notification is fixed at Rs. 2.04 per day, i.e, 25.44 per cent. Thus, while the cost of living has increased by 13.08 per cent, the increase in the V.D.A compared to the preceding period is 25.44 per cent. In other words, the V.D.A has increased by 194.5 per cent. The other periods also have been similarly shown in the chart which was handed over in the course of argument. The facts and figures shown therein are not controverted.
6. Thus, it will be clear that the V.D.A fixed by the notification has been more than 100 per cent of neutralisation of cost of living index. Principle has now been settled beyond controversy in a number of decisions of the Supreme Court and in view of the of the decision of the Supreme Court in the case of Shri Chahhan Vibhag Khand Udyog Sahakari Mandali, Ltd. v. G.S Barot, Member, Industrial Court, Gujarat [1980 — I L.L.N 28], the notification in so far as it fixes the V.D.A in excess, of 100 per cent neutralisation of cost of living index is illegal, invalid and without jurisdiction. The decision of this Court, dated 24 November 1982, in C.W.J.C No. 1867 of 1981 (R) and analogous cases, the same notification came up for consideration but on the facts of those cases, it was held that there was nothing on the record on the basis of which it could be help that while raising the rate of the neutralisation for V.D.A from 2 paise per point to 4 paise per point an attempt was made to give cent per cent neuralisation. In the facts of the present case, it must be held that as a result of the revision of V.D A. on the basis of the said notification, neutralisation will be more than 100 per cent and hence the Government in revising V.D.A at 4 paise per day has exceeded its jurisdiction and authority.
7. In so far as C.W.J.C No. 812 of 1983 (R) is concerned, the petitioners, Singhbhum Chamber of Commerce and Industries have challenged the notifications, dated 24 February and 7 October 1981, (annexures 1 and 2). The points are identical which have been considered in the present writ application [C.W.J.C No. 910 of 1981 (R)] and no new point has been urged.
8. Therefore, the notifications in so far as it fixes the V.D.A in excess of 100 per cent neutralisation of cost of living index are illegal, invalid and without jurisdiction. In the result, both the writ applications are allowed but there will be no order as to costs.