Back
SUPREME COURT OF INDIA
S.C. Agarwal and G.T. Nanavati, JJ.
Rajender Deva - Appellant
Versus
M/s. Hari Fertilizers - Respondent
C.A. Nos. .... of 1996. (Arising out of SLP (C) Nos. 14565-66 of 1995
Decided On : 18-01-1996
Bonus - Payment of Bonus Act - Interpretation of 'wages' - The court considered whether minimum bonus payable under section 10 of the Payment of Bonus Act, 1965 falls within the ambit of the expression 'wages' as defined in section 2(vi) of the Payment of Wages Act, 1936.
Fact of the Case:
The appellant claimed a total amount of bonus of Rs. 3,860/- for the years 1984, 1987, and 1988. The Allahabad High Court held that minimum bonus is not covered by the definition of 'wages' under the Payment of Wages Act, 1936.
Finding of the Court:
The court directed the respondent to pay the claimed amount of bonus with interest at the rate of 12 per cent per annum, to be counted from the date of the expiry of the prescribed period for payment under the Payment of Bonus Act. The court did not delve into the raised question of law and left it open. The appeals were disposed of accordingly with no costs.
Issues: Interpretation of 'wages' under the Payment of Wages Act, 1936 in relation to minimum bonus payable under the Payment of Bonus Act, 1965.
Ratio Decidendi: The court found that the minimum bonus is not covered by the definition of 'wages' under the Payment of Wages Act, 1936, and directed the respondent to pay the claimed amount of bonus with interest.
Final Decision: The court directed the respondent to pay the claimed amount of bonus with interest and disposed of the appeals accordingly.
JUDGMENT :
1. Leave granted.
2. We have heard the learned counsel for the parties.
3. The only question which falls for our consideration in this appeal is whether minimum bonus payable under section 10 of the Payment of Bonus Act, 1965 falls within the ambit of the expression "wages" as defined in section 2(vi) of the Payment of Wages Act, 1936. By the impugned judgment, the Allahabad High Court has taken the view that minimum bonus is not covered by the said definition. The total amount of bonus which is claimed by the appellant is Rs. 3,860/- in respect of the years 1984, 1987 and 1988.
4. Having regard to the facts and circumstances of this case, we direct the respondent to pay the said amount of bonus with interest at the rate of 12 per cent per annum. The said interest will be counted from the date of the expiry of the period of eight months prescribed under section 19 for the payment of such bonus under the Payment of Bonus Act. The amount payable shall be paid within a period of one month. In the circumstances, we do not consider it necessary to go into the question of law which has been raised in the appeals and the said question is left open. The appeals are disposed of accordingly. No costs.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
