{"id":123114,"date":"1978-01-24T00:00:00","date_gmt":"1978-01-23T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/k-c-p-employees-association-vs-management-of-k-c-p-ltd-madras-on-24-january-1978"},"modified":"2015-03-31T23:16:40","modified_gmt":"2015-03-31T17:46:40","slug":"k-c-p-employees-association-vs-management-of-k-c-p-ltd-madras-on-24-january-1978","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/k-c-p-employees-association-vs-management-of-k-c-p-ltd-madras-on-24-january-1978","title":{"rendered":"K.C. P. Employees&#8217; Association, &#8230; vs Management Of K. C. P. Ltd., Madras on 24 January, 1978"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">K.C. P. Employees&#8217; Association, &#8230; vs Management Of K. C. P. Ltd., Madras on 24 January, 1978<\/div>\n<div class=\"doc_citations\">Equivalent citations: 1978 AIR  474, \t\t  1978 SCR  (2) 608<\/div>\n<div class=\"doc_author\">Author: V Krishnaiyer<\/div>\n<div class=\"doc_bench\">Bench: Krishnaiyer, V.R.<\/div>\n<pre>           PETITIONER:\nK.C. P. EMPLOYEES' ASSOCIATION, MADRAS\n\n\tVs.\n\nRESPONDENT:\nMANAGEMENT OF K. C. P. LTD., MADRAS\n\nDATE OF JUDGMENT24\/01\/1978\n\nBENCH:\nKRISHNAIYER, V.R.\nBENCH:\nKRISHNAIYER, V.R.\nSINGH, JASWANT\n\nCITATION:\n 1978 AIR  474\t\t  1978 SCR  (2) 608\n 1978 SCC  (2)\t42\n CITATOR INFO :\n R\t    1982 SC  78\t (8)\n\n\nACT:\nPayment\t of  Bonus  Act\t (Act  21),  1965,  s.\t3,   proviso\nto--Applicability of.\n\n\n\nHEADNOTE:\nManagement-respondent  is a public limited company  carrying\non three business adventures viz., manufacture of sugar,  of\ncement\t and  of  heavy\t engineering  machinery,  at   three\ndifferent  places.   In\t respect  of  the  workers  of,\t the\nengineering  unit known as Central Workshops and  which\t was\nfinancially  ill,  the management demurred  the\t payment  of\nbonus under the Act for the years 1964-65 and 1965-66 on the\nground that the central workshop was a separate\t undertaking\nto  which the proviso to Section 3 applied and\tconsequently\nthe  claim for bonus on the basis of a single  establishment\nwithin\tthe  meaning of the main s. 3  was  untenable.\t The\nLabour\tTribunal, however, upheld the claim of\tthe  workmen\nfor  both  the\tyears.\t When  the  said  two  awards\twere\nchallenged by a writ petition, a single Judge of Madras High\nCourt  upheld the award for 1964-65.  In further  appeal  by\nthe management, the Division Bench set aside both the awards\nfor 1964-65 and 1965-66 and directed the Tribunal to correct\ncertain errors.\nDismissing the appeals by special leave with directions\t for\nexpediting  and completing the lis within three months,\t the\nCourt\nHELD : 1. In Industrial law, interpreted and applied in\t the\nperspective  of Part IV of the Constitution, the benefit  of\nreasonable doubt on law and facts, if there be such  doubt,\nmust go to the weaker section, labour. [610 B-C]\n2.In the instant case : (a) Proviso to s. 3 is attracted.\nSeparate  balance  sheet and profit and loss  accounts\thave\nbeen  prepared\tand maintained in the past  and\t during\t the\nrelevant years of accounting also and (b) The High Court  is\nright  in directing the Tribunal to re-enquire, rectify\t the\nbalance sheets and profit and loss accounts for the years in\nquestion  taking  due note of the requirements of  the\tAct.\n[609 G-H, 610 A]\n<a href=\"\/doc\/991396\/\">Alloy Steel Project v. The Workmen,<\/a> [1971] 3 SCR 620  (ratio\ninapplicable)\n\n\n\nJUDGMENT:\n<\/pre>\n<p>CIVIL  APPELLATE JURISDICTION : Civil Appeal Nos.  2142-2143<br \/>\nof 1970.\n<\/p>\n<p>Appeal\tfrom  the Judgment and Order dated 3-9-1970  of\t the<br \/>\nMadras\tHigh  Court in Writ Appeals Nos&#8217; 350\/68\t and  76  of<br \/>\n1969.\n<\/p>\n<p>M. K. Ramamurthi, M. P. Dhar and Vineet Kumar for the Appel-<br \/>\nlant.\n<\/p>\n<p>V.   M. Tarkunde and Naunit Lal for Respondent No. 1.<br \/>\nB.   P. Singh for Respondent No. 2.\n<\/p>\n<p>For  Respondent No. 3 in CA 2142 and RR 3-6 in C.A.  2143\/70<br \/>\nex-parte.\n<\/p>\n<p>The Judgment of the Court was delivered by<br \/>\nKRISHNA\t  IYER,\t J.-Affirming  judgments  need\t not   speak<br \/>\nelaborately,  and so, in these two appeals where we  do\t not<br \/>\ndisagree  with\tthe High Court, only a\tbrief  statement  of<br \/>\nreasons is called for.\n<\/p>\n<p>The   subject  matter  is  a  bonus  dispute   between\t the<br \/>\nmanagement respondent and the workmen union revolving  round<br \/>\nthe applicability<br \/>\n<span class=\"hidden_text\">609<\/span><br \/>\nof  the\t proviso to Section 3 of the Payment of\t Bonus\tAct,<br \/>\n1965  (hereinafter  referred to as the Act)  for  the  years<br \/>\n1964-65 and 1965-66.  A thumbnail sketch of the facts :<br \/>\nThe  K. C. P. Limited, a public limited company, carries  on<br \/>\nthree  business adventures, viz., &#8216;manufacture of sugar,  of<br \/>\ncement\tand of heavy engineering machinery.   The  concerned<br \/>\nfactories  are in three different places in South India\t and<br \/>\nemploy workmen on different terms in three different  units.<br \/>\nWe are directly concerned with the engineering unit known at<br \/>\nthe Central Workshops run at Tiruvottiyur, Madras.  When the<br \/>\nPayment\t of Bonus Act, 1965 came into force the\t workmen  of<br \/>\nthis unit, which was financially faring ill unlike the other<br \/>\ntwo  sister  units, demanded bonus on the footing  that\t the<br \/>\nthree\tdifferent  undertakings\t must  be  treated  as\t one<br \/>\ncomposite  establishment  and on the basis  of\tthe  overall<br \/>\nprofits, bonus must be reckoned as provided in the Act.\t The<br \/>\nrespondent demurred on the ground that the Central  workshop<br \/>\nwas a separate undertaking to which the proviso to Section 3<br \/>\napplied and consequently the claim for bonus on the basis of<br \/>\na   single  establishment  was\t untenably   over-ambitious.<br \/>\nAlthough the concerned unit was perhaps a losing proposition<br \/>\nfor  the  relevant years, (we do not know for  certain)\t the<br \/>\nTribunal upheld the claim of the workmen for both the years,<br \/>\nbut the two awards were challenged, by Writ Petition, in the<br \/>\nHigh  Court.  The award relating to 1964-65 was upheld by  a<br \/>\nSingle Judge of the High Court who took the view that  since<br \/>\nall  the  three\t units,\t though\t divergent  and\t located  in<br \/>\ndifferent  places,  were  owned by  the\t same  company\tand,<br \/>\ntherefore,  without more, were covered by the main  part  of<br \/>\nSection\t 3  and\t the  proviso  stood  repelled.\t  Two  other<br \/>\nquestions, which had engaged the attention of the  Tribunal,<br \/>\nwere scantily dealt with, the findings, if one may call them<br \/>\nso,  being  adverse  to the workmen.   The  management\tduly<br \/>\ncarried\t an  appeal before a Division Bench  of\t that  Court<br \/>\nwhich also called up and heard the Writ Petition against the<br \/>\naward  relating to the year 1965-66.  Both the\tawards\twere<br \/>\nset  aside,  the holdings on the  substantial  points  being<br \/>\nadverse to the workmen.\t However, certain follow-up  inquiry<br \/>\nhad to be done by the Tribunal to correct errors, for  which<br \/>\nlimited\t purpose  there was a direction by the\tHigh  Court.<br \/>\nThe  matter stood at that stage and the two appeals in\tthis<br \/>\nCourt  are aimed against the decision of the Division  Bench<br \/>\nof the High Court.\n<\/p>\n<p>The  first point that appealed to the learned Single  Judge,<br \/>\nbut  failed  before the Division Bench,\t has  admittedly  no<br \/>\nmerit  in  the light of this Court&#8217;s direct  ruling  on\t the<br \/>\npoint.\n<\/p>\n<p>The  second  point urged by Shri M. K. Ramamurthy  that\t the<br \/>\nCentral Workshop has had no &#8216;separate, viable  balance-sheet<br \/>\nand   profit   and  loss  accounts  in\trespect\t  of&#8217;\tthat<br \/>\nundertaking,  and  that such is the finding of fact  by\t the<br \/>\nTribunal,  does not appeal to us.  Nor is there life in\t the<br \/>\nthird  limb of this argument that the respondent has  failed<br \/>\nto  show that the Workshop has not been treated as  part  of<br \/>\nthe  common establishment for the purpose of computation  of<br \/>\nbonus.\t We  agree  with the  appellate\t judgment  that\t the<br \/>\nproviso is attracted.  Separate balancesheet and profit\t and<br \/>\nloss accounts have been prepared and maintained in the\tpast<br \/>\nand during the relevant years of accounting also, although<br \/>\n<span class=\"hidden_text\">610<\/span><br \/>\nthere  is  much force in the contention that they  have\t not<br \/>\nbeen&#8217;  properly\t maintained.   Some  items  which  may\thelp<br \/>\nenhance\t the bonus have, perhaps, been omitted and the\tHigh<br \/>\nCourt  is  right in directing the  Tribunal  to\t re-enquire,<br \/>\nrectify the balance-sheets and profit and loss accounts\t for the  years in<br \/>\n question taking due note of the  requirements<br \/>\nof  the\t Act as mentioned in the judgment  of  the  Division<br \/>\nBench  vis-a-vis  Central Workshop.  We\t are  in  respectful<br \/>\nagreement  with the decision in <a href=\"\/doc\/991396\/\">Alloy Steel Project  v.\t The<br \/>\nWorkmen<\/a>(1)  but\t do  not regard the ratio of  that  case  as<br \/>\napplicable to the present case on the facts.<br \/>\nIn   Industrial\t  Law,\tinterpreted  and  applied   in\t the<br \/>\nperspective  of Part IV of the Constitution, the benefit  of<br \/>\nreasonable  doubt on law and facts, if there be such  doubt,<br \/>\nmust  go to the weaker section, labour.\t The  Tribunal\twill<br \/>\ndispose\t of the case making this compassionate approach\t but<br \/>\nwithout over-stepping the proved facts, correct the balance-<br \/>\nsheets and profit and loss accounts of the Central  Workshop<br \/>\nto  the\t extent justified by the Act and  the  evidence\t and<br \/>\nfinish the lis within three months of receipt of this order.<br \/>\nThe appeals are dismissed.  No costs.\n<\/p>\n<p>S.R.\n<\/p>\n<p>Appeals dismissed.\n<\/p>\n<p>(1) [1971] (3) S.C R. 629.\n<\/p>\n<p><span class=\"hidden_text\">611<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India K.C. P. Employees&#8217; Association, &#8230; vs Management Of K. C. P. Ltd., Madras on 24 January, 1978 Equivalent citations: 1978 AIR 474, 1978 SCR (2) 608 Author: V Krishnaiyer Bench: Krishnaiyer, V.R. PETITIONER: K.C. P. EMPLOYEES&#8217; ASSOCIATION, MADRAS Vs. RESPONDENT: MANAGEMENT OF K. C. P. LTD., MADRAS DATE OF JUDGMENT24\/01\/1978 BENCH: [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-123114","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>K.C. P. Employees&#039; Association, ... vs Management Of K. C. P. 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