STATE OF TAMIL NADU Vs. K SABANAYAGAM

JUDGEMENT

(1.) Leave granted in the S.L.Ps.

(2.) As common questions of law and fact arise in this group of appeals they were heard together and are being disposed of by this common judgment. The State of Tamil Nadu and the Tamil Nadu State Housing Board (hereinafter referred to as 'the Housing Board') as appellants in these appeals have raised a contention for our consideration as to whether the Payment of Bonus Act, 1965 (hereinafter referred to as 'the Act') will be applicable to the employees of the Housing Board during the relevant accounting years from 1978-79 onwards. It is contended on behalf of the appellants that the employees of the Board will not be entitled to the statutory bonus under the Act on twin grounds. Firstly, in view of the statutory exclusion of the Housing Board from the applicability of the Act as per Section 32(v)(c) of the Act; and secondly, on the ground that the State of Tamil Nadu for the relevant years had exercised its power of exempting the Housing Board under Section 36 of the Act from all the provisions of the Act. In the writ petitions filed by employees of the Housing Board the High Court of Madras has taken the view that the Housing Board is not entitled on the facts of the cases to earn statutory exemption under Section 32(v)(c) of the Act and the orders of exemption issued by the State of Tamil Nadu in exercise of its powers under Section 36 of the Act in favour of the Housing Board for the relevant years, were not legally sustainable. The High Court has also taken the view that in any case the State of Tamil Nadu had no authority to retrospectively grant exemption under Section 36 of the Act for the earlier accounting years. Net result of the impugned orders is that the Housing Board has been directed to make payment of statutory bonus to the employees from accounting year 1976-79 onwards.

(3.) It may be mentioned that while admitting these appeals to final hearing the stay of impugned orders was not granted. Resultantly we are informed that but for one year, for all the rest of the years the amounts of bonus in dispute have already been released by the Housing Board and paid to its employees. Background facts and the relevant statutory scheme