U.P. ELECTRICITY SUPPLY CO. LTD. versus WORKMEN & ORS.

U.P. ELECTRICITY SUPPLY CO. LTD. versus WORKMEN & ORS.

The Tribunal erred in law and on facts in awarding bonus to the workmen by wrong calculation of available surplus, unwarranted addition of certain sums to the gross profits, and failure to allow a proper return on capital. Since, after correct adjustment, available surplus was not sufficient even for statutorily mandated reserves, no bonus could be awarded for the relevant period.

Parties
Appellant: U.P. Electricity Supply Co. Ltd.; Respondents: Workmen & Ors.
Jurisdiction
India
Judgment Date
01 September 1971
Procedural Posture
Civil Appeals / Appeal by Special Leave From the Award Dated November 16, 1965 of the Industrial Tribunal (iii), Allahabad
Outcome
Appeal allowed
Legal Topics
Bonus Entitlement, Past Industrial Disputes, Calculation of Available Surplus, Tribunal Jurisdiction After Acquisition
Labour Law Industrial Disputes Bonus Entitlement Past Industrial Disputes Calculation of Available Surplus Tribunal Jurisdiction After Acquisition

Case Brief

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Parties

U.P. Electricity Supply Co. Ltd.

Appellant

Workmen & Ors.

Respondents

Procedural Posture

Civil Appeals / Appeal by Special Leave From the Award Dated November 16, 1965 of the Industrial Tribunal (iii), Allahabad

Legal Issues

  1. 1 Whether the Tribunal could adjudicate a dispute relating to past bonus after compulsory acquisition of the company by the State
  2. 2 Whether the Tribunal erred in its computation of available surplus and bonus due to workmen for 1960-61

Ratio Decidendi

The Tribunal erred in law and on facts in awarding bonus to the workmen by wrong calculation of available surplus, unwarranted addition of certain sums to the gross profits, and failure to allow a proper return on capital. Since, after correct adjustment, available surplus was not sufficient even for statutorily mandated reserves, no bonus could be awarded for the relevant period.

Court Disposition

Appeal allowed

Orders

  • Provision for payment of bonus in the award set aside
  • No order as to costs; parties to bear their own expenses