Hospital is a separate department of the society.

A.K. RAJAN, J.

( 1 ) THIS writ petition is filed against the order passed by the Industrial Tribunal in Industrial dispute No. 90 of 1989. The reference for adjudication is “whether the demand for payment of bonus to the workers at 8. 33% for the years 1986-87 is justified; if not, to what relief they are entitled “and also for another issue. The other issue is not relevant for the present and hence it is not extracted.

( 2 ) THE facts are as follows: The Christian medical Hospital was founded about 90 years ago. Subsequently, Medical college was started. There are 3500 employees of various categories in the hospital. The employees of the Christian Medical College (hereinafter referred to as "CMC"), claimed that the provisions of the Payment of Bonus Act applies to them. The management contends that the Payment of bonus Act has no application for C. M. C. Hospital as it is exempted under sub-clauses (b) and (c) of Section 32 (v) of the Act.

( 3 ) THE employees contention is that the hospital manufactures more than 150 medicines and it is sold to the patients on commercial basis. Almost about 98. 6% of the total expenditure of the society is meted out by the income from the patients. The contribution made by the Council Members to the society is only approximately 1. 5% and therefore, the management is not a charitable institution and therefore, the workmen should be paid minimum bonus as per the Payment of Bonus act, inasmuch as the hospital is run on commercial basis.

( 4 ) THE case of the management institution is that Payment of Bonus Act has no application to it as it is an educational institution run by Christian religious society. The Supreme Court of India has recognized the petitioner as an educational institution which is bound to run the hospital. The object for which the hospital was founded is to manage and develop the Christian Medical College and Hospital where men and women shall receive high education in arts and science as well as medicine and nursing. The college also conducts research. According to the University regulation, hospital shall be attached to the medical college and therefore, hospital is an integral part of the educational institution. The Act is not applicable to the petitioner as the Act exempts educational institution under Section 32 (v) (b).

( 5 ) FURTHER, Section 32 (v) (c) excludes "hospitals which are not run for profit. " Since, the hospital is not run for profit, it is exempted under this sub-section as well. The medicines manufactured are sold only to the patients in the hospital and the income generated from such sales is ploughed back to the resources of the institution. Hence, the preliminary issue, whether the Payment of Wages Act applies to the respondent institution has to be decided first, in order to avoid unnecessary discussion on various issues.

( 6 ) AFTER hearing both parties, the Tribunal held that Payment of Bonus Act is applicable to c. M. C. Hospital. Against this award, this writ petition has been filed.

( 7 ) COUNSEL for the petitioner pointed that section 32 (v) (b) and (c) of the Payment of bonus Act reads thus:"32. Act not to apply to certain classes of employees. Nothing in this Act shall apply to (a ). -. . . . . . . . . (b) Universities and other educational institutions. (c) institutions (including hospitals, chambers of commerce and social welfare institutions) established not for purposes of profit; The counsel for the petitioner submitted that a reading of the above provisions makes it clear that the Payment of Bonus Act has no application to any educational institution, because Christian medical College Hospital is an educational institution. It has also been so held by a division Bench of this Court as well as by the Supreme Court and the respondent union was also a party to those proceedings. Therefore, the decision rendered in that case is binding on the respondent also as res judicata; the respondent is also estopped from contending tha