Judgment

VAIDIALINGAM, J.: - This appeal, by special leave, is directed against the award dated November 24, 1967 of the Industrial Tribunal, Punjab, Chandigarh, in Reference No. 44 of 1966.

2. The President of India, by order dated October 31, 1966 referred the following issues for adjudication under Section 10 (1) of the Industrial Disputes Act, 1947 to the Industrial Tribunal, Punjab, Chandigarh :

"1. Whether the workmen are justified in demanding the minimum bonus payable for the years 1964-65, 1965-66 and future years being fixed @ Rs. 110/- and the maximum @ Rs. 360/- per worker ? If so, with what details ?

2. Whether the action of the management in treating 4 days advance bonus paid for the years 1965-66 as deductible from bonus payable in future years is justified ? If so, are any conditions or stipulations necessary and if so, with what details ?

3. Whether there is any justification for making any amendments in the production bonus-scheme introduced by the management in such a way that it enables payment of bonus to the lower paid workers at higher rates and higher paid workers at lower rates ? If so, with what details?

4. Whether the workers are entitled to any wages or compensation for the period of strike viz., 12th October to 31st October, 1966 ."

It may be stated at the outset that this Court is not concerned with issue No. 3. The question of introduction of production bonus scheme arises only to a limited extent in so far as it has got a bearing on a contention raised by the appellant that the production bonus scheme has been introduced in substitution of ex-gratia payment of bonus which was being made by the management. Even as regards the strike period mentioned in issue No. 4, parties were agreed before the Tribunal that the period of strike in respect of which wages or compensation were claimed by the workmen was from 17th October to 31st October 1966 and not from 12th October as stated in issue.

3. The circumstances under which the reference came to be made by the President of India may be stated. The appellant Fertiliser Corporation of the India is a limited company incorporated under the Companies Act 1956 and it is also a Government company, as defined in Section 617 of that Act. The Nangal unit of the appellant went into production for the first time during the financial year 1962-63. On October29, 1963, the appellant issued a Circular regarding the grant of ad hoc bonus of the year 1962-63. The General Manager states, in the Circular that the management has sanctioned payment of ad hoc bonus to employees of Nangal unit for good performance during the year 1962-63 and that bonus will be payable to all employees who are on the rolls of the Corporation on October 30, 1963 and had completed 1 year s service on March 31, 1963 and whose basic salary on that date did not exceed Rs. 500/- per mensem. The Circular proceeds to state that the amount of bonus payable will be 1 month s basic salary plus dearness allowance, subject to the condition that no employee will get less than Rs. 100/- or more than Rs. 300/-.

4. On December 17, 1964, the appellant issued a circular regarding the grant of bonus and ex gratia payment for the year 1963-64. This circular states that the management has decided to sanction bonus and ex gratia payment to the employees of the Nangal unit on the basis mentioned therein. The principles laid down in this circular regarding payment of bonus and ex gratia payment are : (1) Bonus is being paid to all eligible employees strictly in conformity with the Bonus Commission s recommendation, as accepted by the Central Government, and the said bonus is the minimum bonus payable as per the Bonus Commission s recommendations, equivalent to 4 of the total basic wage and dearness allowance (excluding all other allowances etc.) paid during the year 1963-64. The employees eligible for these payments are those who draw a total basic pay and dearness allowance up to Rs. 1,600/- per mensem and the quantum payabl