Employees of hospital are legible for payment of bonus.

P.SHANMUGAM, J.

Respondent in the claim petition and petitioner in the writ petition, aggrieved by the confirming orders, has preferred the above writ appeal.

2. The facts leading to the case are stated below :-

The Christian Medical College and Hospital Employees' Union raised Industrial Dispute No.90 of 1989 before the Industrial Tribunal in reference to payment of bonus and enhancement of pay scales. The Government of Tamil Nadu, as per G.O. No.1672 dated 8.9.1989, made the following reference to the Industrial Tribunal, Chennai :

(1) Whether the demand for payment of bonus to the workers at 8.33% for the year 1986-87 is justified, and if not, to what relief they are entitled ?

(2) Whether the demand for enhancement of pay scales to the workers by 20% over the present pay scales is justified ? and if so, to fix the pay scales and the dates from which the revised pay scales should be given effect to.

The Management of Christian Medical College and Hospital raised an objection dated 9.1.1990 as to the applicability of the Payment of Bonus Act and prayed for a decision as a preliminary issue. The Industrial Tribunal, by an order dated 23.12.1993, over ruled the preliminary objection and posted the Industrial Dispute for enquiry on merits. Aggrieved by this order, Writ Petition No.1624 of 1994 was preferred by the Management. By an order dated 31.1.2002, the writ petition was allowed in part insofar as it related to the Christian Medical College, but it was dismissed insofar as it related to the Christian Medical College and Hospital. The present writ appeal is against this order.

3. In the present writ appeal, we are concerned only with the claim of bonus. The following questions arise for consideration in this appeal :

(1) Whether the Management of the Hospital is an educational institution and therefore, whether the provisions of the Payment of Bonus Act, 1965 are applicable ?

(2) Whether the Hospital is exempted from the application of Section 35(5)(c) of the Payment of Bonus Act ?

4. Whether the Christian Medical College and Hospital is an Educational Institution ?

Looking at the history of the appellants' institution, it could be seen that Dr. Ida Soudder, a grand daughter of the First American Medical Missionary in India, realizing that the basic need in India was women doctors as custom did not allow women to be treated by men and to relieve the suffering of women in particular, started a one-bed clinic in 1900 and set up a hospital with 40 beds within two years with a group of medical women. But, her main desire was to train women doctors who would go out to serve suffering women and children. Thus, training courses for nurses and a medical school for women came into being. The hospital and the medical school were growing and the medical school became a medical college with degree courses in 1942. The historic change came in the year 1947 when men also were admitted to the medical college in response to the national need. The educational programmes of the college and the services of the main and branch hospitals have also expanded steadily.

5. The Christian Medical College Vellore Association has been formed for running and administering a Medical College and a College of Nursing in Vellore, both of which are affiliated to the University of Madras. Besides the Graduate Medical Course leading to M.B.B.S. Degree, they conduct Diploma, Post-Graduate Diploma and Post-Graduate Degree Courses in various specialties.

6. The college is situated about four miles away from the main hospital in a 186.75 acres area. The hospital is situated in the town of Vellore on 32.93 acres area. The non-clinical departments of Anatomy, Physiology, Bio-Chemistry and Pharmacology as well as departments of Community Health, Psychiatry, Rehabilitation Institutions and Rural Hospital are situated in the college campus, while other departments are situated in the hospital. The Medical Council of India has issued regulations relating to the standar