High Court Of Madhya Pradesh
N. H. BHAGWATI, S. J. IMAM AND P. B. GAJENDRAGADKAR, JJ.
MEENAKSHI MILLS LIMITED - Appellant
Versus
IR WORKMEN - Respondents
Civil 219 Of 1956
Decided On : 11/15/1957
BONUS - DEPRECIATION - INDUSTRIAL DISPUTE - INCOME TAX - LABOUR APPELLATE TRIBUNAL - REVIEW - WORKMEN'S CLAIM - FULL BENCH FORMULA - INDUSTRIAL TRIBUNAL - INCOME TAX ACT, 1922 - INDUSTRIAL DISPUTES (APPELLATE TRIBUNAL) ACT, 1950 - CODE OF CIVIL PROCEDURE, 1908
Fact of the Case:
The appellants, two textile mills, challenged the findings of the Industrial Tribunal and the Labour Appellate Tribunal that they formed part of the same unit and that there was a surplus of Rs. 2,87,676.00 against which the workmen's claim for bonus was justified. The appellants also filed an application for review before the Labour Appellate Tribunal on the ground that the order passed by the Tribunal was patently erroneous.
Finding of the Court:
The Court upheld the findings of the Industrial Tribunal and the Labour Appellate Tribunal that the two mills formed part of the same unit and that there was a surplus of Rs. 2,57,496.00 available for distribution as bonus. The Court also held that the Labour Appellate Tribunal had jurisdiction to review its own orders under Order 47 of the Code of Civil Procedure, but that in the present case, the appellants had failed to show that the order suffered from any mistake which could not have been known when the order was pronounced.
Issues: 1. Whether the two mills formed part of the same unit and whether there was a surplus available for distribution as bonus? 2. Whether the Labour Appellate Tribunal had jurisdiction to review its own orders under Order 47 of the Code of Civil Procedure? 3. Whether the appellants had shown that the order suffered from any mistake which could not have been known when the order was pronounced?
Ratio Decidendi: 1. The Court held that the Industrial Tribunal and the Labour Appellate Tribunal had correctly found that the two mills formed part of the same unit and that there was a surplus of Rs. 2,57,496.00 available for distribution as bonus. The Court noted that the appellants had failed to provide sufficient evidence to rebut the findings of the tribunals. 2. The Court held that the Labour Appellate Tribunal had jurisdiction to review its own orders under Order 47 of the Code of Civil Procedure. The Court noted that the Code of Civil Procedure applies to the proceedings before the Labour Appellate Tribunal and that Order 47 of the Code therefore applies to these proceedings as much as Section 151 of the Code or the provisions of Order 41. 3. The Court held that the appellants had failed to show that the order suffered from any mistake which could not have been known when the order was pronounced. The Court noted that the appellants had filed a statement before the Labour Appellate Tribunal raising the issue of the provision for income tax, but that the appellants had not raised this argument in their arguments before the Tribunal. The Court also noted that the appellants had not shown that the provision for income tax made by the Tribunal was inadequate.
Final Decision: The Court dismissed the appeals with costs.
( 1 ) THESE three appeals arise out of two industrial disputes Nos. 24 and 26 of 1951 between the appellants and their workmen. Dispute No. 24 of 1951 had arisen between the management and workers of the Sree Meenakshi Mills Ltd. , Madurai, whereas dispute No. 26 of 1951, was between the management and workers of the Thiakesar Alai Manapparai. Both the disputes were in respect of bonus claimed by the workmen for the year 1950- 51. The workmen claimed bonus for the year 1950-51 on the allegation that the two mills constituted one unit and had made profits during the relevant year. On the other hand, the appellants contended that the two mills were two different units and the claims for bonus made by the workmen against themshould not be considered together. According to the appellants, during the relevant year there was a trading loss and as such no bonus was payable to the workers. The Industrial tribunal rejected the pleas raised by the appellants and held that the two mills formed part of the same unit. It also came to the conclusion that for the year in question there was a surplus of Rs. 2,87,676. 00 against which the workmen's claim for bonus was justified. That is why the tribunal awarded three months' bonus to the workmen.
( 2 ) AGAINST this decision the appellants preferred two appeals Nos. 133 and 134 of 1952 to the Labour Appellate tribunal of India at Madras. In these appeals the appellants challenged the findings made by the tribunal against them and urged that bonus was not payable during the relevant year. The workmen also preferred an appeal, No. 168 of 1952, and in this appeal they claimed a larger bonus than what had been awarded by the tribunal below. The appellate tribunal confirmed the finding of the tribunal that the two mills formed part of the same unit. According to the appellate tribunal, the net surplus available for distribution as bonus came to Rs. 2,57,496. 00. The claim made by the appellants in respect of various deductions was examined by the appellate tribunal and deductions were substantially, disallowed in respect of three items. In respect of an amount of Rs. 8,43,927. 00 claimed by the appellants as depreciation on machinery and buildings the appellate tribunal concurred with the industrial tribunal in holding that the claim only for a sum of Rs. 4,00,000. 00 was admissible; in other words, a claim for deducting the balance of Rs. 4,43,927. 00 was disallowed. It is this finding in particular with which we are directly concerned in the present appeals. it may be pointed out at this stage that in determining the amount of net surplus available for distribution as bonus, the appellate tribunal agreed with the industrial tribunal that the provision for taxation made by the appellants to the extent of Rs. 1,75,000. 00 was adequate. In the result, the appeals preferred by the appellants as well as the respondents failed and were dismissed by the appellate tribunal. Against the order dismissing their appeals, the appellants have preferred to this court by special leave the present Civil Appeals Nos. 218 and 219 of 1956.
( 3 ) THE appellants had also preferred an application for review before the Labour Appellate tribunal, Misc. Case No. III-C- 387 of 1953 (Review) on the ground that the order passed by the Labour Appellate tribunal was patently erroneous inasmuch as there was a mistake apparent on the face of the record which should be corrected under the appellate tribunal's powers of review. The appellate tribunal hold that it had no power of review and that,- even if it bad such a power, no case had been made out for the exercise of such power because there was no mistake apparent on the face of the record which could not have been discovered whet) the order was made in the presence of the parties. Against this decision, the appellants have preferred to this court by special leave the present Civil A peal No. 217 of 1956.
( 4 ) IN appeals Nos. 218 and 219 of 1956, the main po
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