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(1.) ORDER
(2.) SPECIAL leave granted.
We are extremely happy to place on record that the parties and the learned counsel appearing for the parties have responded in a very positive manner to the suggestion made by the court and have solved the problem as per the terms incorporated in the document dated 2 3/01/1987 which bears the signature of the representatives of the workmen and the representatives of the Management which shall be kept on record and a copy whereof shall be annexed hereto and form a part of this order. Under the circumstances, there will be an order in terms of consent viz.:-
1. A settlement under S. 18(1) of the industrial Disputes Act, dated 1/8/1974 was arrived at under which 25% Bonus plus exgratia was payable for the years 1973-74 to 1976-77. Bonus and exgratia for the year 1973-74 was paid as per agreement.
2. Bonus Act was amended on 2 5/09/1975 (11 of 1975) by an Ordinance The Management con tended that the clause relating to Bonus was rendered null and void by the Act (23 of 1976).
3. The workmen contended that the amount payable under Bonus has survived the amendment, being a contractual obligation.
4. The subject was taken to Industrial tribunal and Madras High court. The Madras High court I upheld the Management's contention. Against this, workmen preferred an appeal to Supreme Court.
5. The Supreme court was also hearing two similar cases :
a) M/s Dharangadhara Chemical Works
b) M/s Mackinnon & Mckenzie & Co.
6. The judges while hearing had directed the parties to compromise among themselves. Accordingly Dharangadhara Chemical Works Ltd. and Mackinnon & Mckenzie & Co. Ltd. had settled the dispute by a compromise. Dharangadhara Chemical works Ltd. settled at 20%. Though agreement provided for 20%, Mackinnon & Mckenzie & Co. Ltd. have settled for a lower amount around 15%.
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7. Management viewed so far that if it pays Bonus as per settlement of 1/8/1974 for the period April, 197 4/03/1977, it would be violating the law.
8. Since two similar cases had been mutually settled under the direction of Supreme court Judges in January, 1987, Management now offered to settle the Bonus for the period April, 197 4/03/1977 on the similar lines. After discussions between Management and the representatives of workmen, the following has been mutually agreed upon.
8.1 Management is willing to honor the settlement of I-8-1974 to pay Bonus and exgratia and make payment as detailed below subject to direction and approval of Supreme court:
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Eligibility and computation of Bonus and exgratia will be made as per the then practices and in terms of the settlement of 1/8/1974.
8.2 All the above payments will be made in two/three instalments between March and April, 1987.
8.3 As the disputes pertaining to Bonus for the period 1974-77 have been mutually settled, the cases before the courts will be withdrawn.
In view of this order, Writ Petition No. 1504 of 1978 pending in the High court of Madras will be treated as withdrawn. A copy of this order will be forwarded to the learned Registrar of the Madras High court for placing the matter before the High court for formally disposing of the matter in the aforesaid manner. Industrial Disputes No. 48 of 1977 pending before the industrial tribunal, Madras will also stand withdrawn. A copy of this order will also be sent to the tribunal for formally disposing of the matter in the aforesaid manner.(3.) WE are assured by the counsel for the parties that this arrangement has been entered with the end in view to fully and finally put an end to the dispute between the parties in so far as the question of bonus which is the subject matter in dispute in corned and to close the chapter
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We must in fairness place on record our high appreciation for the constructive role played by the counsel for both the sides.;