ALLOY STEEL PROJECT versus THE WORKMEN

ALLOY STEEL PROJECT versus THE WORKMEN

Alloy Steel Project is a separate establishment within the meaning of the Payment of Bonus Act as separate balance-sheet and profit and loss accounts are maintained. Therefore, Alloy Steel Project is entitled to exemption from payment of bonus for the relevant accounting year (1965-66) under section 16(1) as it did not earn profits, and the contrary view of the Tribunal equating establishment with company was erroneous.

Parties
Appellant: Alloy Steel Project; Respondent: The Workmen
Jurisdiction
India
Judgment Date
02 February 1971
Procedural Posture
Civil Appeal / Civil Appellate Jurisdiction; Appeal by Special Leave From Award of the Ninth Industrial Tribunal, West Bengal
Outcome
Appeal allowed.
Legal Topics
Payment of Bonus, Definition of Establishment Under Payment of Bonus Act, New Establishments Exemption, Calculation and Exemption of Bonus
Labour Law Industrial Law Payment of Bonus Definition of Establishment Under Payment of Bonus Act New Establishments Exemption Calculation and Exemption of Bonus

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Parties

Alloy Steel Project

Appellant

The Workmen

Respondent

Procedural Posture

Civil Appeal / Civil Appellate Jurisdiction; Appeal by Special Leave From Award of the Ninth Industrial Tribunal, West Bengal

Legal Issues

  1. 1 Whether Alloy Steel Project is a separate establishment under the Payment of Bonus Act for the purpose of bonus computation and exemption under s. 16(1)?
  2. 2 Whether the Tribunal erred in holding 'establishment' synonymous with 'company'?
  3. 3 Whether Alloy Steel Project is entitled to exemption from payment of bonus for 1965-66 under s. 16(1)?

Ratio Decidendi

Alloy Steel Project is a separate establishment within the meaning of the Payment of Bonus Act as separate balance-sheet and profit and loss accounts are maintained. Therefore, Alloy Steel Project is entitled to exemption from payment of bonus for the relevant accounting year (1965-66) under section 16(1) as it did not earn profits, and the contrary view of the Tribunal equating establishment with company was erroneous.

Court Disposition

Appeal allowed.

Orders

  • The order of the Tribunal is set aside.
  • The reference is answered in favour of the appellant; no bonus payable for 1965-66 to Alloy Steel Project workmen under s. 16(1).