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1975 Supreme(MP) 129

High Court Of Madhya Pradesh
P.K. Tanre, C.J., R.J. Bhave and S.S. Sharma, JJ.
JUNIOR LABOUR INSPECTOR CENTRAL
Versus
AUTHORITY UNDER PAYMENT OF WAGES ACT
Decided On : Oct 09,1975

Headnote:(1) Payment of Wages Act, 1936 - S. 2 (vi) – Wages - bonus payable under the Payment of Bonus Act - is within the scope of wages.

       The amount of bonus payable under the Payment of Bonus Act 1965, would be covered within the definition of wages as defined in section 2 (vi) of the Payment of Wages Act. 1970 JLJ 716 overruled, (1958) (1) LLJ 773 (SC), 1964 (2) LLJ 430 (SC), AIR 1971 Bom. 124 (FB), 1969 (1) LLJ 627 (1970) 1, FLR 424 relied on. [Para 11]

       (2) Payment of Bonus Act, 1965 - S. 21 - applicability of.

       The mode of recovery provided in section 21 of the Act of the bonus due from an employer would be available only if the bonus sought to be recovered is under a settlement or an award or agreement. Recovery of bonus which is payable under the Payment of Bonus Act and not under any settlement, award or agreement, is not covered by section 21 of the Act. [Para 14]

       (3) Payment of Bonus Act, 1955 - S. 22 - scope of - employer not disputing the liability to pay bonus - section not attracted.

       Where the employer does not dispute the liability to pay the bonus, section 22 is not attracted. [Para 15]

       It is not every dispute between an employer and an employee in regard to bonus which shall be covered under section 22, but this section would be attracted only if the dispute is:-

       (i) with respect to the bonus payable under the Act, or

       (ii) with respect to the application of the Act. AIR 1969 SC 530 relied on. [Para 23]

JUDGMENT :

( 1. ) THE petition under Articles 226 and 227 of the Constitution of India has been filed against an order, dated 19-12-1969, passed by respondent No. 1. . Authority under the Payment of Wages Act (hereinafter referred to as " the Authority "), whereby he dismissed the application filed before him under Section 15 of the Payment of Wages Act, 1936 (hereinafter referred to as " the Wages Act"), holding that " this Authority has no jurisdiction to entertain the present application for the claim of bonus. "

( 2. ) A Division Bench of this Court in Junior Labour Inspector (Central), Jabalpur v. Authority under the Payment of Wages Act and Ors. 1970ii L. L. J. 484, had taken the view that " bonus " payable under the Payment of Bonus Act, 1965 (hereinafter referred to as the " Bonus Act ") is not " wages as denned in the Wages Act. It also held that a complete machinery having been provided by the Bonus Act, the Wages Act has no application to the claim for bonus under the Bonus Act. Having taken this view the order of the Authority holding that no application lay to him was upheld and the petition filed by the Junior Labour Inspector was dismissed. When the present petition came up for hearing the decision by a Division Bench of the Bombay High Court in D. P. Kelkar v. Amba Das Kesho Bajaj and Ors. taking the view that " bonus" is included in the term " wages " was brought to the notice of the Division Bench. Feeling the importance of the question involved which is likely to arise often it was directed that the case be listed before a larger Bench for consideration. In that order it was, however, made clear that the reference will not be restricted to any particular point. It is in these circumstances that this matter was heard by us.

( 3. ) THE facts briefly stated axe as follows : The petitioner who is a Junior Labour Inspector (Central) Jabaipur and Inspector under the Wages Act, filed an application before the "authority" at Jabalpur under Section 15 of the Wages Act for issuance of a direction under Section 15 (3) for payment of bonus in respect of the employees as mentioned therein. This claim for bonus was said to be due in respect of the account year closing on 31-12-1967 as per Section 10 of the Bonus Act, which had not been paid by the employers. This claim was against respondents Nos. 2 to 4 as owners, nominated owner-cum-agent and manager, respectively of Ghorawari and Hirdagarli Collieries. Respondents Nos. 2 to 4 filed a written-statement before the authority. For a better appreciation of the question involved, it would be appropriate to reproduce the legal objection raised by them. Their written-statement has not been included in the paper book but we have perused it from the record of the " Authority ", which is as follows: It is admitted that the Bonus payable under the Payment of Bonus Act, 1965 for the period ending 3112-1967 has not been paid. It is, however, denied that the said Bonus is a Wage in terms of Section 2 (vi) of the Payment of Wages Act, 1936. It is further submitted that the Bonus payable under the Payment of Bonus Act, 1965 is not payable under the terms of em-not form part of the remuneration payable under the terms of employment nor is it payable under any award or settlement. It is respectfully submitted that this petition filed by the Junior Labour Inspector is misconceived. Such petitions cannot be entertained by this Court as the Definition of the word wages given in the Payment of Wages Act, 1936 does not cover the Bonus payable under the Payment of Bonus Act, 1965. This Court has, therefore, no jurisdiction to entertain this Petition. The other plea that was raised was that " the delay in payment of bonus is due to causes beyond the control of the non-applicants ". The sum total of the causes for the delay in payment as mentioned in the further pleadings was stated to be financial stringencies. The responsibility of respondents Nos. 2 to 4 to pay the amount of bonus was, however

































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