1951 (7) TMI 10

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... was presented for the winding up of that company. That application seems to have been transferred from the District Court, Nagercoil, to the file of the erstwhile Travancore High Court and re-numbered as O.P. No. 1 of 1122. A single Judge of the erstwhile Travancore High Court dismissed that O.P. on 9th July. 1948. There was an appeal presented to the appellate side of the erstwhile Travancore High Court from this decision. The appeal was filed on 25-12-1123 accompanied with a petition for stay. The directors by their learned counsel took notice of that application and stay of proceedings was ordered. The judgment in the appeal was delivered on 23-4-1124 corresponding to 8th December, 1948. In the meantime on 30-12-1123 the directors of the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Act as including "bonus". This reasoning is entirely fallacious. This would be evident if reference is made to the opening words of the relevant section of the Travancore Payment of Wages Act which make it clear that the words defined in that section are to be understood in the sense of the definition, for the purpose of that Act. When it is a definition, restricted in its scope to the particular Act, it cannot be regarded as a general definition that would apply to the term which occurs in other Acts of the legislature. Therefore, it is not possible for us to uphold the view taken by the court below that the word "bonus" will come under the category of 'wages' in the Companies Act. It appears from the records that on the date this resolut .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... t. This is clear from the decided cases which are all collected together in the commentary of Pollock and Mulla on the Indian Contract Act, pages 182 and 183, (7th Edition). In these circumstances, we have no hesitation in allowing this appeal and setting aside the order made by the court below. We are leaving the question open as to whether when the list of creditors is ultimately settled the employees in whose favour a bonus has been sanctioned by the directors may come forward and prove their claims just like ordinary creditors. The main question then will be whether they are not persons to whom gifts have been promised. The appellant will be entitled to costs of this appeal payable out of the assets in the hands of the liquidators.

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X