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1988 Supreme(Ker) 100

Judges : MALIMATH,BHASKARAN NAMBIAR
PAPPU - Appellant
Versus
RAJA TILE AND MATCH WORKS - Respondent
Case No : W.A. No. 639 of 1986
Decided On : 02/25/1988
Advocates Appeared :
P. Raveendran; Anil; For Appellant K.A. Nayar; For Respondent M. Ramachandran; As amicus curiae

The Bonus Act does not exclude the application of S 33-C (2) of the I. D. Act, and the right claimed under S.33 C(2) is a cheap, efficacious, speedy, summary remedy for recovery of money or any benefit which is capable of being computed in terms of money by a workman from his employer.

Headnote:

S.33-C (2) - Applicability to Bonus Dispute - S.22 of the Payment of Bonus Act - S.39 of the Payment of Bonus Act - The court discussed the applicability of S.33-C (2) of the Industrial Disputes Act to a claim for bonus under the Payment of Bonus Act. The dispute centered around the computation of the amount of bonus payable and whether it falls under S.33C(2). The court traced the legislative history and referred to specific statutory provisions to consider whether every dispute with respect to bonus can only be a matter for adjudication and settlement under the I.D. Act. The court highlighted that the Bonus Act intended to provide a machinery for settlement of disputes with respect to bonus and achieved that purpose through S.22 and 39. The court also discussed the impact of the Bonus Act on the right claimed under S.33 C(2) of the I. D. Act, emphasizing the qualitative difference between the dispute under S.10(1) and the claim under S.33. The court concluded that the Bonus Act does not exclude the application of S 33-C (2) of the I. D. Act.

Fact of the Case:

The appellants, two employees of a Tile and Match Factory, claimed bonus for the year 1978-79 at the rate of 17.75 per cent of the wages as declared by the employer. The employer paid the bonus deducting seven days wages paid for national and festival holidays. The employees moved the Labour Court under S.33-C(2) of the Industrial Disputes Act. The employer questioned the jurisdiction of the Labour Court to entertain the application, but the same was overruled and the employer was directed to pay the two appellants Rs. 27.50 towards bonus. This decision was challenged by the employer under Art.226 of the Constitution and a learned single judge allowed the writ petition and quashed the decision of the Labour Court.

Finding of the Court:

The court found that the dispute regarding the computation of the amount of bonus payable falls under S.33C(2) and that the Bonus Act does not exclude the application of S 33-C (2) of the I. D. Act.

Issues: The main issues were whether Payment of Bonus Act excludes the applicability of S 33-C (2) of the I D. Act and what are the bonus disputes covered by S.33C(2).

Ratio Decidendi: The court emphasized the qualitative difference between the dispute under S.10(1) and the claim under S.33, highlighting that the right claimed under S.33 C(2) of the I. D. Act is a cheap, efficacious, speedy, summary remedy for recovery of money or any benefit which is capable of being computed in terms of money by a workman from his employer.

Final Decision: The court allowed the appeal, set aside the judgment of the learned single judge, and dismissed the Original Petition.

Judgment :-

1. The applicability of S.33-C (2) of the Industrial Disputes Act to a claim for bonus under the Payment of Bonus Act, arises for determination in this appeal.

2. The facts are not in dispute. The appellants are two employees of a Tile and Match Factory, claiming bonus for the year 1978-79 at the rate of 17.75 per cent of the wages as declared by the employer. The employer paid the bonus deducting seven days wages, paid for national and festival holidays. These two employees claimed that bonus was payable to them with reference to the wages received by them for these holidays as well; but the employer did not accede to this demand. They therefore, moved the Labour Court under S.33-C(2) of the Industrial Disputes Act. The employer questioned the jurisdiction of the Labour Court to entertain the application; but the same was overruled and the employer was directed to pay the two appellants Rs. 27.50 towards bonus. This decision was challenged by the employer under Art.226 of the Constitution and a learned single judge allowed the writ petition and quashed the decision of the Labour Court holding that the "dispute" raised by the Management was an "industrial dispute" under S.22 of the Payment of Bonus Act and was therefore not a matter to be decided under S.33-C (2) of the Industrial Disputes Act. Aggrieved, the employees have filed this appeal.

3. The appellants contend that when the applicability of the Payment of Bonus Act (for short, the Act) to the establishment is not disputed and the rate of bonus payable is also fixed and declared, the dispute, if any, thereafter relates only to the computation of the amount of bonus payable and thus an application under S.33-C(2) of the Industrial Disputes Act (for short, I.D. Act) was maintainable. On the other hand, the employer contends that the dispute "with respect to the bonus payable under the Act" is deemed to be an industrial dispute under S.22 of the Act, and therefore, the remedy available to the employer should be found in the I.D. Act for settlement of this dispute; and without such settlement, no application under S.33-C(2) which is only in the nature of an execution application, will lie. It is also stressed that even though the payment of wages for the national and festival holidays is a statutory liability, they are not wages earned by the employee, for any work done by them and therefore the liability to pay bonus under the Act for this period is disputed and the merits of this dispute can only be decided by an award or settlement under the I.D. Act. It is submitted that when this decision has to be taken in appropriate proceedings under S.10 of the I.D. Act, it is not proper for the Labour Court under S.33-C (2) or this Court under Art.226 to consider the merits or demerits of the case put forward by the employees.

4. In the nature of the controversy raised before us, two questions mainly arise for determination: (i) whether Payment of Bonus Act excludes the applicability of S 33-C (2) of the I D. Act and (ii) what, if any, are the bonus disputes that are covered by S.33C(2). It becomes necessary, therefore, to trace the legislative history and refer to the specific statutory provisions to consider whether every dispute with respect to bonus without reference to its 'nature, character and quality, can only be a matter for adjudication and settlement under the I.D. Act. It has also to be noted that the dispute regarding bonus in this case lies in a very narrow compass, for, there is no dispute regarding the rate of bonus or the applicability of the Act to the establishment. The dispute is with reference to the seven national and festival holidays in 1978-79,

5. Regarding national and festival holidays, the Standing Labour Committee constituted by the Government of India expressed the view that the industrial workers in the private sector of industrial undertakings should have seven paid holidays and that necessary legislation should be so undertaken for the purp















































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