INDEQUIP ENGINEERING LIMITED Vs. STATE OF GUJARAT
LAWS(GJH)-1979-8-19
HIGH COURT OF GUJARAT
Decided on August 10,1979

INDEQUIP ENGG.LIMITED Appellant
VERSUS
STATE Respondents

JUDGEMENT

B.J.DIVAN - (1.) IN this case the petitioner challenges the order passed by the respondent herein refusing exemption to the petitioner from the payment of bonus. The order is Annexure E to the petition and is dated May 2 1979 Paragraph 4 of the order states:- Now therefore the State Government decides not to give exemption under sec. 36 of the Bonus Act to the applicant company in the public interest. IN the matter of Baroda Electronics INdustries Private Ltd; a similar order in identical terms as Annexure E was be:-fore this Court. The High Court dismissed summarily the special civil application filed by the company in that particular case and thereafter in Supreme Courts C. A. No. 311/789 of 1979 the Supreme Court set aside the order of the High Court as in the opinion of the Supreme Court the order of the State Government refusing exemption to the company under sec. 36 of the Payment of Bonus Act on the face of it seemed to be a mechanical order without application of proper mind. Merely to say that in the order that the Government have taken into consideration the say of the company and the workers regarding the financial position of the applicant company the fact of bonus being deferred wage the expectation of workers and in the event of non-payment of bonus. the likelihood of industrial unrest and its consequent adverse effect on further production and viability is not sufficient and does not fulfil the requirement of sec. 30 as interpreted by this Court in (1967) SCR 15. IN our opinion the State Government ought to have considered precisely and a bit more fully as to what actually the financial position of the appellant company was and what were the other relevant facts and circumstances which as compared to the former could enable the Authority to arrive at a conclusion whether exception should be granted or not According to the Supreme Court the order did not convey at all as to what weighed with the Government as against the claim of the appellant company in refusing it; prayer for exemption. The Supreme Court allowed the appeal set aside the order of the State Government and remitted the case back to it for a fresh consideration and disposal of the appllants application under sec. 36 of the Payment of Bonus Act in the light of the order.
(2.) . In view of this decision of the Supreme Court this special civil application is allowed and the order Annexure E to the petition is quashed and set aside. The matter is remitted beck to the State Government for a fresh consideration and disposal of the petitioners application under sec. 36 of the Payment of Bonus Act in the light of the above decision of the Supreme Court. It must also be pointed out that in the light of the other decisions the Supreme Court the decision of the Government must be a speaking order setting out reasons for its conclusion. There will be no order as to costs Rule made absolute accordingly. Petition allowed.;


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