1976 (10) TMI 135

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.... the workers were collecting tips from customers, that subsequently under an agreement entered into between the management and the employees under section 12(3) of the Industrial Disputes Act, 1947, it was agreed that the employees would not collect tips from the customers and instead the management would collect 5 per cent of the tariff value of the articles served as service charges and utilise the service charges so collected by way of paying 50 per cent thereof immediately to the employees and appropriating the other 50 per cent to increase the wages and food allowance of the employees and also to introduce a provident fund scheme for the employees, that, therefore, the service charges so collected do not stand on a footing different fr....

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....charges had no independent existence of their own. So far as the customer is concerned and for all practical purposes, the price of the food ordered by the customer is what he pays therefor. If the customer is required to pay what is stated as tariff plus 10 per cent over and above that tariff, then the price, so far as the customer is concerned, for the food supplied and served to him in the establishment will be the total amount of the bill that is charged including the so-called service charges. The Tribunal has also held that it is not possible for the customer to enter into the contract only for doing service in the manner in which the service charges are sought to be interpreted apart from the food which is supplied. It is not as if o....