IN THE HIGH COURT OF DELHI AT NEW DELHI
C. HARI SHANKAR, J.
Batra Hospital Employees Union – Petitioner
Versus
Batra Hospital & Medical Research – Respondents
W.P (C) No. 5349 of 2004
Decided On : 22-01-2018
Payment of Bonus Act, 1965 - Section 32(v)(c) - Hospital - Run of charity - Office of profit - Hospital was run on the basis of the income received from patients, apart from donations given to it - Hospital was run on charitable lines and was unable to name a single patient who had been given free treatment - Hospital issued a booklet, depicting the rates charged by it for various services rendered - Claim filed by the petitioner before the Tribunal - Specific allegations that the respondent-Hospital was charging huge amounts even to hand over dead bodies - Section 32(v)(c) of the Act - Respondent-Hospital cannot be regarded as established "not for the purpose of profit - Impugned Award of the Tribunal proceeds on assumptions and presumptions - Impugned Award, of the Tribunal, is quashed and set aside - Respondent-Hospital is declared to be covered by the Payment of Bonus Act, 1965, and not entitled to the benefit of Section 32(v)(c).
1. The Batra Hospital Employees Union claims, in this petition filed under Articles 226 and 227 of the Constitution of India, to be aggrieved by an Award, dated 03rd November 2003, passed by the Industrial Tribunal-I, Karkardooma (hereinafter referred to as “the Tribunal”), which holds that the provisions of the Payment of Bonus Act, 1965 do not apply to the Batra Hospital and Medical Research Centre.
2. The Batra Hospital and Medical Research Centre (hereinafter referred to as “the respondent-Hospital”) was, admittedly, managed and run by the Ch. Aishi Ram Batra Charitable Trust (hereinafter referred to as “the Trust”). On 23rd July 1999, the “Batra Hospital & Medical Research Centre of Ch. Aishi Ram Batra Charitable Trust Employees” Union (Regd. No. 4144)” – which, admittedly, was the rather unwieldy moniker given to itself by the Union of employees of the respondent-Hospital – wrote, to the Management of the respondent-Hospital, contending that the workmen of the respondent-Hospital were entitled to be paid bonus, under the Payment of Bonus Act, 1965 (hereinafter referred to as “the Act”). The said communication was exhibited, before the Tribunal, as Ex. WW-1/A. The respondent-Hospital replied, on 5th August 1999 (Ex. WW-1/2), contending that the Hospital had been “established not for the purposes of profit” and was, therefore, exempt from the applicability of the Act, by virtue of sub-clause (c) of clause (v) of Section 32 [hereinafter referred to as “Section 32(v)(c)”] thereof, which read thus:
“32. Act not to apply to certain classes of employees.- Nothing in this Act shall apply to –
(i) xxxxxxx;
(ii) xxxxxxx;
(iii) xxxxxxx;
(iv) xxxxxxx;
(v) employees employed by –
(a) the India Red Cross Society or any other institution of a like nature (including its branches);
(b) universities and other educational institutions;
(c) institutions (including hospitals, chambers of commerce and social welfare institutions) established not for purposes of profit; ……”
3. This resulted in the Conciliation Officer being moved in the matter and, on conciliation proceedings failing to fructify, the initiation of an industrial dispute, under the Industrial Disputes Act, 1947 (hereinafter referred to as “the ID Act”), which was referred, by the Secretary, (Labour), Government of National Capital Territory of Delhi, to the Tribunal, vide notification dated 01st February 2002, containing the following term of reference:
“Whether the provision of bonus Act. 1965 is applicable on M/s. Batra hospital and if so, what directions are necessary in this respect?”
4. The claimant-workmen, before the Tribunal, were arrayed as “Workmen as represented by Ch. Aishi Ram Batra Charitable Trust Employees” Union”.
5. Statement of Claim was filed, by the workmen, before the Tribunal, contending, inter alia, that (i) the nomenclature of the Trust, which ran the respondent-Hospital was misleading, as the Hospital practiced no charity, (ii) no free treatment was given to any patient in the hospital, (except to certain VIPs), (iii) there were instances in which dead bodies, of patients who had breathed their last breath in the hospital, were not handed over to their relatives except after payment of huge amounts there for, (iv) the balance-sheet of the hospital clearly showed that it was earning huge profits and that, from the said profits, amounts were diverted towards development of the hospital building, purchasing of machines etc. and (v) the Trust owning the Hospital was controlled by the members of one family and the resources and profits from the Hospital were used by the members of the said family, to the extent that the vehicles, staff etc. of the Hospital were used by the said family members. Accordingly, the workmen submitted that the “charitable” exterior of the Hospital was a mere facade and that, therefore, the Hospital was reneging on its statutory obligation to disburse bonus under the Act which, according to the workmen, applied to the respondent-Hospita
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