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TMI Blog1967 (2) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... to arbitration of the industrial court by a submission in writing dated February 28, 1956 under S.66 of the Act. On March 1, 1956 an agreement was entered into between the Millowners' Association on behalf of certain cotton textile mills and respondent 2 in connexion with the method to be adopted for payment of bonus for these years. In accordance with that agreement the industrial court made an award dated March 13, 1956 in terms of the said agreement. Clause 10 of the agreement provided for decision by arbitration in future in the event of difference of opinion arising between the parties regarding the determination of available surplus of profits or the quantum of bonus to be paid by the cotton textile mills. The appellant was not a party to the agreement and was accordingly not bound by the agreement. The Government of Bombay, however, issued a notification under S.114(2) of the Act which states as follows : In cases in which a representative union is a party to a registered agreement, or a settlement, submission or award, the State Government may, after giving the parties affected an opportunity of being heard, by notification in the official gazette, direct that su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the award dated March 13, 1956 for the years 1953 and 1954. There were disputes between the appellant and respondent 2 with regard to the bonus to be paid for the years 1955 and 1956. The dispute was referred to the arbitration of Sri M. D. Bhat. The arbitrator gave his award on April 25, 1958. After certain correspondence between the parties the award was filed with the registrar, industrial court, under S.74(1) of the Act. As the appellant failed to carry out directions contained in the award, respondent 2 made an application to the labour court-Application No. 574 of 1958-contending that the appellant had committed an illegal change under the Act by not paying to their employees bonus as directed by the award dated April 25, 1958 and prayed for an order that the appellant should be directed to withdraw the illegal change with immediate effect. The appellant denied its liability, but the labour court allowed the application of respondent 2 by its order dated August 4, 1959 and directed the appellant to withdraw the illegal change by complying with the directions contained in the award within one month from the date of the order. The appellant took the matter in appeal to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t stated as follows : ...... The contention on behalf of the appellant is that it would not be open to an industrial court to grant bonus when profit was not adequate to meet all prior charges or where there was an actual loss and therefore when the impugned notification made it possible for grant of bonus even in these cases (for prima facie) the appellant had made losses up to 1955). It directed something which even an industrial court could not do. In consequence, it is urged that the notification inasmuch as it makes this possible, is beyond the powers conferred on the State Government under S. 114(2), because it allows something to be done which even an industrial court could not allow. Reliance in this connexion is placed on the decision of this Court in New Maneckchowk Spinning and Weaving Company, Ltd., and others v. Textile Labour Association, Ahmedabad 1961 (1) LLJ 521 ]. In that case this Court was considering a similar agreements relating to Ahmedabad. The industrial court had imposed that agreement after its expiry for one year on the mills in spite of their contention that they were not bound to pay any bonus for the years in dispute in view of the law laid down b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bour court allowed the application on August 4, 1959 and the appellant had preferred an appeal to the industrial court on August 31, 1959. The decision of the industrial court was given on October 24, 1959 and after the appeal was dismissed, the appellant moved the High Court for grant of a writ on November 16, 1959. Sri B. Sen then put forward the argument that the appellant itself, had acted on the bonus agreement and on October 14, 1957 had issued a notice informing its workers that pursuant to the award of the industrial court in terms of the agreement dated March 1, 1956 reached between the Millowners' Association, Bombay and the Rashtriya Mill Mazdoor Sangh, regarding payment of bonus it would be paid to them at 4.8 per cent of the total basic earning during 1956. On October 27, 1956 the appellant and the secretary of respondent 2 signed a joint statement in which it was stated as follows : Since it has not yet been possible to complete bonus calculation for all these years, it is hereby agreed between the Rashtriya Mill Mazdoor Sangh, Bombay, and the Moon Mills, Ltd., Bombay, that under the bonus agreement the Moon Mills should pay a bonus at the rate of 4.8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ength of the delay and the nature of the acts done during the interval, which might affect either party and cause a balance of justice or injustice in taking the one course or the other, so far as relates to the remedy. In the present case, we are of opinion that there is no such negligence or laches or acquiescence on the part of the appellant as may disentitle it to the grant of a writ. For the reasons already stated, we hold that the judgment of the Division Bench of the Bombay High Court dated February 6, 1962 must be set aside and the appellant must be granted a writ in the nature of certiorari for quashing the other of the industrial court, dated October 24, 1959 and of the labour court dated August 4, 1959. The appeal is accordingly allowed, but in the circumstances of the case, there will be no order as to costs. We should, however, like to make it clear that this decision will not prejudice the trial of any references with respect to bonus which may be pending or which may hereafter be made between the appellant and its employees in respect of the years 1955 and 1956. If such references are pending or should hereafter be made, they will be proceeded with and deci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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