Baidyanath Ayurveda Bhawan Mazdoor
Union, Patna Vs. Management of Shri Baidyanath Ayurveda Bhawan Pvt. Ltd.
&Or  INSC 186 (24 November 1983)
MISRA RANGNATH MISRA RANGNATH DESAI, D.A.
MISRA, R.B. (J)
CITATION: 1984 AIR 457 1984 SCR (1) 927 1984
SCC (1) 279 1983 SCALE (2)814
Payment of Bonus Act 1965 Act whether
exhaustive on the law relating to bonus- `Attendance bonus' being paid prior to
Act-Employees whether entitled to `attendance bonus' over and above profit
bonus payable under the Act.
The workmen working in the establishment of
the first respondent were being paid `attendance bonus'. The question whether
the workmen were entitled to payment of bonus under the Payment of Bonus Act,
1965, over and above the `attendance bonus' was referred to adjudication under
Section 10 of the Industrial Disputes Act 1947. The Tribunal held in favour of
the workmen. Before the High Court the employer contended that when bonus was
being paid under the Act the workmen were not entitled to separate `attendance
bonus'. The High Court, relying on the decision of this Court in Sanghi
Jeevaraj Ghewar Chand & Ors. v. Secretary, Madras Chillies, Grains Kirana
Merchants Workers' Union & Anr. (1969) 1 S.C.R. 366 held that the workmen
were not entitled to payment of `attendance bonus'.
Allowing the appeal,
HELD: 1. Both the Tribunal and the High Court
concurrently held that the workmen in the establishment had been receiving
`attendance bonus' from before. `Attendance bonus' being outside the purview of
the Bonus Act, the High Court was not right in vacating the award of the
[928 E-F, 931 A]
2. In Ghewar Chand's case on which the High
Court relied, the question was not whether after the Bonus Act came into force,
the other types of bonus hitherto paid caused to be payable. This question was
directly considered in Mumbai Kamgar Sabha, Bombay v M/s Abdulbhai Faizullabhai
& Ors.(1976) 3 SCR 591 and held that the Act leaves untouched customary
bonus. [929 A-B, 930 H]
3. In the instant case, if the employer had
not challenged the award the workmen would have had the benefit of the bonus
more than a decade back. That justifies the awarding of interest at 9% per
annum. [931 B-C] 928
CIVIL APPELLATE JURISDICTION : Civil Appeal
No. 1851 of 1974.
Appeal by Special Leave from the Judgment and
Order dated the 24th October, 1973 of the Patna High Court in C.W.J.C. No. 613
R.K. Garg and V.J. Francis for the Appellant.
L.C. Goyal for the Respondents.
The Judgment of the Court was delivered by
RANGANATH MISRA, J. This appeal by special leave is directed against the
decision of the Patna High Court quashing an award of the Industrial Tribunal
of Bihar in exercise of jurisdiction under Article 227 of the Constitution and
the workmen's union has carried the appeal.
Two disputes were referred to adjudication
under section 10 of the Industrial Disputes Act but the appeal is confined to
only one, viz., "whether the workmen are entitled to payment of bonus for
the year 1966-67 under the Payment of Bonus Act over and above the `attendance
bonus' which is being paid in this establishment? If so, what should be the
quantum of bonus?" The Tribunal found that the workmen were entitled to
attendance bonus over and above the bonus payable under the Payment of Bonus
Act, 1965 (`Act for short), and specified the amount as required under the
reference. The employer challenged the Award before the High Court and contended
that no separate attendance bonus was payable when bonus was being paid under
the Act. A Division Bench of the High Court came to hold, concurring with the
Tribunal, that the workmen in the establishment had been receiving attendance
bonus from before and proceeded to examine whether such attendance bonus was
included in the bonus payable to the workmen under the Act or could be claimed
over and above the statutory bonus. Relying on the observations of this Court
in Sanghi Jeevaraj Ghewar Chand & Ors. v. Secretary, Madras Chillies,
Grains Kirana Merchants Worker's Union & Anr.(1), the Court came to the
conclusion that the workmen were not entitled to payment of attendance bonus
for the year 1966-67 and accordingly vacated the Award.
929 In Ghewar Chand's case (supra) as rightly
observed by the High Court the question for consideration was not whether after
the Act came into force and statutory bonus became payable, other types of
bonus hitherto paid ceased to be payable. On the other hand, in a later case Mumbai
Kamgar Sabha, Bombay v. M/s. Abdulbhai Faizullabhai & Ors.(2). this Court
considered the question directly. The later case also referred to Ghewar
Chand's case and ultimately held:
"It is clear further from the long title
of the Bonus Act of 1965 that it seeks to provide for bonus to persons employed
`in certain establishments' not in all establishments. Moreover, customary
bonus does not require calculation of profits, available surplus, because it is
a payment founded on long usage and justified often by spending on festivals
and the Act gives no guidance to fix the quantum of festival bonus;
nor does it expressly wish such a usage. The
conclusion seems to be fairly clear, unless we strain judicial sympathy
contrariwise, that the Bonus Act dealt with only profit bonus and matters
connected therewith and did not govern customary, traditional or contractual
bonus." Referring to Ghewar Chand's case, Krishna Iyer, J. in this latter
case indicated :
"...so viewed, we are able to discern no
impediment in reading Ghewar Chand as confined to profit-bonus, leaving room
for non-statutory play of customary bonus. The case dealt with a bonus claim by
two sets of workmen, based on profit of the business but the workmen fell
outside the ambit of the legislation by express exclusion or exemption. Nothing
relating to any other type of bonus arose and cannot be impliedly held to have
been decided. The governing principle we have to appreciate as a key to the
understanding of Ghewar Chand is that it relates to a case of profit bonus
urged under the Industrial Disputes Act by two sets of workmen, employed by
establishments which are either excluded or exempted from the Bonus Act. The
major 930 inarticulate premise of the statute is that it deals with-and only
with-profit-based bonus as has been explained at some length earlier. There is
no categorical provision in the Bonus Act nullifying all other kinds of bonus,
nor does such a conclusion arise by necessary implication, The ruling
undoubtedly lays down the law thus:
`Considering the history of the legislation,
the background and the circumstances in which the Act was enacted, the object
of the Act and its scheme, it is not possible to accept the construction
suggested on behalf of the respondents that the Act is not an exhaustive Act
dealing comprehensively with the subject-matter of bonus in all its aspects or
that Parliament still left it open to those to whom the Act does not apply by
reason of its provisions either as to exclusion or exemption to raise a dispute
with regard to bonus through industrial adjudication under the Industrial
Disputes Act or other corresponding law'.
But this statement, contextually construed,
means that profit-bonus not founded on the provisions of the Bonus Act and by
resort to an adventure in industrial dispute under the Industrial Disputes Act
is no longer permissible. When Parliament has expressly excluded or exempted
certain categories from the Bonus Act, they are bowled out so far as
profit-based bonus is concerned. You cannot resurrect profit-bonus by a
backdoor method, viz., resort to the machinery of the Industrial Disputes Act."
Upon a further analysis of Ghewar Chand's case. Iyer, J. concluded by saying:
"A discerning and concrete analysis of
the scheme of the Act and the reasoning of the Court leaves us in no doubt that
it leaves untouched customary bonus." We concur with this conclusion.
931 On the finding by the Tribunal as also
the High Court that attendance bonus was being paid from before and it being
outside the purview of the Act, the High Court was not right in vacating the
Award. The appeal must succeed and the award on this score has to be restored.
If the employer had not challenged the Award, the workmen would have had the
benefit of the bonus more than a decade back. That justifies awarding of
interest. While allowing the appeal of the workmen with costs, we direct that
the amount found by the Tribunal for being given as attendance bonus shall
carry interest at the rate of 9% per annum from the due date till disbursement.
Hearing fee is assessed at Rs. 2,000.
N.V.K. Appeal allowed.