JALAN TRADING CO PRIVATE LIMITED Vs. MILL MAZDOOR SABHA

JUDGEMENT

(1.) During the pendency, before the Industrial Court, Bombay, of a reference under S. 73-A of the Bombay Industrial Relations Act, 1946, which arose out of a demand for payment of bonus for the years 1961 and 1962, the Payment of Bonus Ordinance 3 of 1965 was promulgated by the President on 29/05/1965, with immediate effect. The representatives of the workmen claimed that even if the plea of the employers that the profit and loss account of the establishment for the years in question disclosed a loss, the Ordinance governed the dispute and that the employees were entitled to receive bonus at the minimum rate of 4 per cent of the salary or wages or Rs. 40 whichever is higher. The Industrial Court upheld the plea of the workmen and directed the employers subject to the provision of the Bonus Ordinance, 1965, to pay to each employee bonus for the year 1962 equivalent to 15 days of the salary or wages or Rs. 40 whichever is higher.

(2.) With special leave, the employers have appealed to this Court and they challenge the validity of the Payment of Bonus Act, 1965, which replaced Ordinance 3 of 1965, and especially of the provisions under which bonus at minimum rate is made payable under the Act.

(3.) Writ Petitions Nos. 3 of 1966 and 32 of 1966 of are filed by two public limited companies. They challenge diverse provisions of the Act and contend that they are not liable to pay bonus under the machinery prescribed by the Act.