BURN AND COMPANY LTD. versus ITS WORKMEN

BURN AND COMPANY LTD. versus ITS WORKMEN

The Tribunal need not be bound by prior rehabilitation charge assessments if previously based on lack of evidence; with current evidence, its amount may be reassessed. Expenses relating to prior years and payments into development rebate reserve are not proper deductions for bonus computation. Provident fund contributions for the year are proper expenses and cannot be added back. The bonus award of 5½ months' wages is reasonable given the available surplus.

Parties
Appellant: Burn & Company Limited (Iron Works), Howrah; Respondent: Its Workmen
Jurisdiction
India
Judgment Date
06 December 1963
Procedural Posture
Civil Appeal / Appeal by Special Leave From Award of the 2nd Industrial Tribunal, West Bengal
Outcome
Appeals dismissed
Legal Topics
Bonus, Rehabilitation Charges, Calculation of Available Surplus, Provident Fund Contribution, Development Rebate Statutory Reserve, Preference Share Dividend Rate
Labour Law Industrial Disputes Bonus Rehabilitation Charges Calculation of Available Surplus Provident Fund Contribution Development Rebate Statutory Reserve Preference Share Dividend Rate

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Parties

Burn & Company Limited (Iron Works), Howrah

Appellant

Its Workmen

Respondent

Procedural Posture

Civil Appeal / Appeal by Special Leave From Award of the 2nd Industrial Tribunal, West Bengal

Legal Issues

  1. 1 Whether the annual rehabilitation charge assessment in prior years binds subsequent years when better evidence is adduced
  2. 2 Whether expenses such as salaries, rates, and taxes of previous years are proper expenses for the year in question
  3. 3 Whether payments into provident fund and development rebate statutory reserve are deductible as proper expenses for bonus computation

Ratio Decidendi

The Tribunal need not be bound by prior rehabilitation charge assessments if previously based on lack of evidence; with current evidence, its amount may be reassessed. Expenses relating to prior years and payments into development rebate reserve are not proper deductions for bonus computation. Provident fund contributions for the year are proper expenses and cannot be added back. The bonus award of 5½ months' wages is reasonable given the available surplus.

Court Disposition

Appeals dismissed

Orders

  • Bonus at 5½ months' wages to workmen confirmed
  • Advance wages paid toward bonus to be set off against awarded bonus