MANAGEMENT OF CENTRAL COAL WASHERY versus WORKMEN & ANR.

MANAGEMENT OF CENTRAL COAL WASHERY versus WORKMEN & ANR.

Workmen are entitled to bonus under section 16(1)(a) only from the year in which profit is derived after providing depreciation as per the Income-tax Act. Since the appellant, after such provision, had not derived profit for years 1964-65 to 1968-69, the workmen were not entitled to bonus for those years.

Source-derived case information.

Parties
Appellant: Management of Central Coal Washery; Respondent: Workmen; Intervenor: Hindustan Steel Coal Washeries Employees Union
Jurisdiction
India
Judgment Date
21 July 1978
Procedural Posture
Civil Appeal / Supreme Court Decision on Appeal From Industrial Tribunal Award
Outcome
Appeal allowed. Award of bonus for the years 1964-65 to 1968-69 set aside.
Legal Topics
Payment of Bonus, Calculation of Profit, Interpretation of Bonus Act
Labour Law Industrial Law Payment of Bonus Calculation of Profit Interpretation of Bonus Act

Source-derived case record

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Parties

Management of Central Coal Washery

Appellant

Workmen

Respondent

Hindustan Steel Coal Washeries Employees Union

Intervenor

Procedural Posture

Civil Appeal / Supreme Court Decision on Appeal From Industrial Tribunal Award

Legal Issues

  1. 1 Whether workmen of Bhojudih Coal Washery were entitled to be paid bonus for 1964-65 to 1968-69 under the Payment of Bonus Act, 1965
  2. 2 Interpretation of 'profit' under section 16(1)(a) and Explanation II to the Payment of Bonus Act, 1965

Ratio Decidendi

Workmen are entitled to bonus under section 16(1)(a) only from the year in which profit is derived after providing depreciation as per the Income-tax Act. Since the appellant, after such provision, had not derived profit for years 1964-65 to 1968-69, the workmen were not entitled to bonus for those years.

Court Disposition

Appeal allowed. Award of bonus for the years 1964-65 to 1968-69 set aside.

Orders

  • The award of the Industrial Tribunal awarding bonus to the workmen for the years 1964-65 to 1968-69 is set aside.
  • The workmen are not entitled to be paid bonus under the Payment of Bonus Act for those accounting years.