Bonus must be paid based on individual unit profits unless a consolidated profit basis is established, as per the Payment of Bonus Act, 1965.

JUDGMENT :

Issue Rule returnable forthwith. Mr. S. B. Dhande, learned counsel waives service of notice of Rule on behalf of the respondents.With consent of learned counsel for the parties, the petition is taken up for final hearing.

2. The petitioner is aggrieved by award dated 03.03.2020 passed by Industrial Court, Nagpur in Reference (BIR) No. 4/2017.

3. Having heard both sides and having gone through the material placed before the Court, what transpires is that the petitioner-original party no. 1 had more than one factories/units. The respondent-employee, original party No. 2, had made demands, inter alia, for payment of bonus at 20% for the year 2015-16. The Industrial Court held that the evidence show that in previous accounting years, right from 2011-12 to 2014-15, the employees of Nagardhan Unit were paid bonus on the basis of the consolidated accounts as reflected in annual report of the concerned year. The Industrial Court, accordingly, held that since for the previous accounting year, Nagardhan Unit employees were paid bonus as per the consolidated balance account as reflected in annual report of the concerned year, the petitioner establishment could not have made a departure in extending benefit of bonus for the year2015-16 by claiming that Nagardhan Unit is a separate establishment.

4. This finding rendered by the Industrial Court is questioned by the petitioner.

5. I have, with the assistance of both the parties, gone through the evidence. The petitioner has examined two witnesses. In the cross-examination of the first witness, it has been brought on record that for the year 2011-12 and 2012-13 so also 2014-15, bonus at the rate 18% was paid in view of the agreement entered into between the parties. The witness admitted that the annual report for the year 2012 to 2016 is common for three units. There is, however, nothing in the evidence to indicate that the aforesaid bonus of 18% was paid on the basis of consolidated balance sheet of three units. In fact, the counsel for petitioner is correct in contending that payment of bonus at 18%, in terms of agreement is itself an evidence that the bonus was not paid on the basis of consolidated accounts for previous years.

6. In the evidence of second witness, the respondents – employees have themselves brought on record that the petitioner has prepared separate balance sheet of Mill at Nagardhan. The witness then deposed that consolidated balance-sheet of all the units is to be submitted to income tax authorities. The witness then states that he has not furnished before the Court the surplus amount available and allocable as per consolidated balance-sheet.

7. As regards the evidence of furnishing consolidated balance-sheets of all units to the income tax authorities, learned counsel for the petitioner submits that the establishment has one PAN and, therefore, is bound to submit to income tax authorities the consolidated balance-sheet for all the units. Such balance-sheet is furnished for the purpose of income tax, however, when it comes to payment of bonus, the employee would be entitled for bonus in terms of balance-sheet of individual unit, if it so maintained by the establishment.

8. As against, learned counsel for the respondents submits that the Industrial Court has based its findings on the basis of consolidated balance-sheet and profit and loss account as reflected in the annual report of the concerned year.

9. There is no dispute that in the annual report of the year 2015-16, consolidated balance-sheet and profit and loss account is shown. The question is whether there was evidence to prove that the respondents, who are/were employees of Nagardhan Unit were paid bonus on the basis of consolidated balance sheet as reflected in the annual report of the concerned year. I have noted above the relevant part of the evidence which would only show that it does not indicate, much less establish, that respondents were paid bonus on the basis of consolidated account. In fact what tran