Judgment

ALAGIRISWAMI, J. :- Civil appeals Nos. 2083 and 2084 of 1969 are by the Management, Shri Ambica Mills Ltd. No. 1, against the Award Part I dated 13th August, 1969 and Part II dated 28th August, 1969, respectively of the Industrial Court, Gujarat in Reference IC NO. 110 of 1968. Civil appeals Nos. 1259 and 1260 of 1970 are by the Textile Labour Association, Ahmedabad, representing the workmen against the same Award.

2. Shri Ambica Mills Ltd., Ahmedabad, is a public limited company owning three textile units, viz., Shri Ambica Mills Ltd. No. 1 and No. 2 at Ahmedabad, Shri Ambica Mills Ltd. No. 3 at Baroda and two engineering units, viz., Shri Ambica Tubes at Vata and Shri Ambica Machinery Manufacturers in the premises of Shri Ambica Mills Ltd. No. 1 at Ahmedabad. The last unit, i.e. Shri Ambica Machinery Manufacturers came into existence in the beginning of the year 1967. Shri Ambica Mills Ltd. 2 and 3 have entered into an agreement to pay bonus on the lines of Shri Ambica Mills Ltd. No. 1, Ahmedabad. All the aforesaid undertakings have been treated as parts of the same establishment, namely, Shri Ambica Millts Ltd., for the purpose of computation of bonus.

3. The dispute relates to the payment of bonus for the year 1967. The demand for the payment of bonus for the year 1967 was raised as a result of notice of change given by the Textile Labour Association (hereinafter referred to as the Association) on 15-7-1968. The appellant mills did not agree to the payment of bonus as demand and conciliation proceedings having failed, the dispute was referred under Section 73-A of the Bombay Industrial Relations Act, 1946. The Association requested the Mills Company to furnish the information regarding the computation of gross profits as well as allocable surplus to enable the association to calculate the bonus for the year 1967. The Mills Company supplied the said information, but it also claimed certain deductions from the gross profit for calculating the allocable surplus.

4. In the statement of claim filed by the Association it was submitted that -

(a) The Mills Company should be directed to pay bonus at the rate of 6.59 % of the annual earnings.

(b) The said amount should be directed to be paid with interest at the prevailing rate.

(c) The Hon ble Court may be pleased to grant any other further relief as it may deem fit.

5. The deductions claimed by the mills in calculating the available surplus were of certain items falling under item 6 (g) of the Second Schedule of the Payment of Bonus Act, 1965, as subsidies. It was contended that only 4% bonus i.e. the minimum bonus was payable.

6. The Association accepted the facts and figures furnished by the Mills Company and the dispute only related to the matter of deduction in respect of an amount of Rs. 32,42,945/- and whether the whole or any part thereof was subsidy or not.

7. The amounts claimed as subsidies consisted of the following five different items :

(1) Rs. 8,63,194/-

Cash subsidy on export of steel pipes and tubes received from Joint Chief Controller of Imports and Exports, Bombay.

(2) Rs. 4,25,233/-

Cash by way of steel entitlement received from the Joint Plant Committee, Calcutta.

(3) Rs. 9,33,213/-

Cash by way of Customs Drawback realisation on certain types of pipes received from the Collector of Customs, Bombay.

(4) Rs. 71,754/-

Cash by way of Railway Freight Rebate paid by the Chief Commercial Superintendent, Western Railway, Bombay.

(5) Rs. 9,49,551/-

Export incentive on the cotton textile goods exported received from the Indian Cotton Mills Federation, Bombay.

8. Out of this total amount, an amount of Rs. 9,72,986/- relates to past years i.e. the years 1965 and 1966, and, according to the Mills Company that cannot, in any event, be treated as income for the accounting year 1967 to which the dispute relates.

9. The Industrial Court held that the Mills Company was entitled to deduct the first two items i.e. cash assistance from Jt. Chief Controller of Imports & Exports, Bombay, being R