Payment of Bonus Act, 1965 – ss.10, 11, 32 – Factories Act, 1948 – Industrial Disputes Act, 1947 – Appellant-trust was doing charitable activities and it was also engaged in industrial activities of commercial nature – Workmen employed by appellant-trust largely comprise of workers cured of leprosy and they had formed a union – Respondent-union raised the issue demanding bonus and ex-gratia for the year 199697 – Tribunal held that respondent-union claim of bonus and ex-gratia was justified – Tribunal ordered that workmen were entitled to a bonus of 8.33% on their annual earnings and further held that they were entitled to an ex-gratia amount – The Single Judge of the High Court upheld the award of the Tribunal but modified the relief to the extent that bonus be awarded after deducting the amount already paid exgratia – Writ appeal filed by the appellant was dismissed – Correctness:
Held: Workmen do not deny the fact that the appellant has been doing charitable work and they also admit that most of the workmen are the persons cured of leprosy who had been rehabilitated by the trust, but again it is a fact that these workmen are working in factories and fall within the definition of ‘workmen’ and ‘employee’ under the Factories Act, 1948 as well as the Bonus Act – Since, admittedly, they work in factories, the Bonus Act is applicable in their case, as are all other beneficial legislations such as the Factories Act, Employees’ State Insurance Act, Employees Provident Fund Act etc. – Just because factories run by the appellant come under the broad umbrella of the appellant-trust, which is also involved in some charitable work, the workers cannot be deprived of the benefit of the Bonus Act – Workmen of the respondent-Union are liable to receive their bonus under the Payment of Bonus Act – Though appellant has been already paying some amount, which is called ex-gratia, as a measure of charity to the workmen – However, same cannot be ground to avoid paying a bonus, which is a statutory duty and right of the appellant and workmen respectively – Thus, appellant is not exempted u/s. 32(v)(a) or (c) of the Bonus Act, and the workmen of the respondent-Union, who are engaged by the appellant in its factories, are entitled to get the bonus in accordance with law. [Paras 14, 16, 17, 19]
Payment of Bonus Act, 1965 – Statement of objects and reasons – Scheme and applicability – Discussed. [Para 7]
As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Ankit Gyan. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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