CENTRAL COAL WASHERY Vs. WORKMEN

JUDGEMENT

(1.) The short question that arises for determination in this appeal is whether the workmen of the Bhojudih Coal Washery of the appellant were entitled to be paid bonus for the years 1964-65 to 1968-69 under the payment of Bonus Act, 1965 (for short the Act).

(2.) The Hindustan Steel Limited owns three steel plants at Rourkela, Durgapur and Bhilai. Since large quantities of metallurgical coal are needed in the manufacture of steel, the Hindustan Steel Limited set up three coal washeries at Dugda, Bhojudih and Patherdih. These three coal washeries were started one after the other, the first to start being the Dugda Coal Washery which commenced functioning from June 1962. The management of these three coal washeries was vested in the hands of the Central Coal Washeries Organisation which was set up as an independent organisation separate from the Hindustan Steel Limited. This Organisation which is the appellant before us maintained separate accounts in respect of itsestablishment which consisted of these three coal washeries and also prepared a separate Balance Sheet and Profit and Loss Account showing the aggregate financial result of the operation of these three coal washeries. Though the establishment of the appellant was set up in June 1962, the provisions of the Act did not become applicable to it until the year 1964-65 in view of sub-sec. (4) of S. 1 of the Act. There could, therefore, be no question of payment of bonus to the workmen of the Bhojudih Coal Washery under the Act until the year 1964-65. The workmen of the Bhojudih Coal Washery, accordingly, pressed their claim for payment of bonus only from the year 1964-65. The appellant disputed the claim of the workmen and contended that by reason of sub-sec.(1) of S. 16, the workmen were not entitled to be paid bonus under the Act for the years 1964-65 to 1968-69. The industrial dispute arising out of the claim of the workmen was referred for adjudication by the Government of India and by an awarded dated 29 July,1970, the Industrial Tribunal took the view that the appellant derived profit from its three coal washeries in the year 1964-65 and the workmen were, therefore, entitled to be paid bonus under the Act from that year under cl. (a) of sub-sec. (1) of S. 16, but since the profits were inadequate to warrant payment of a larger bonus, the workmen were entitled to receive the minimum bonus of 4 percent of the wages as provided in S. 10. The Industrial Tribunal accordingly awarded minimum bonus at 4 per cent of the wages to the workmen of the Bhojudih Coal Washery for the years 1964-65 to 1968-69.

(3.) The appellant being aggrieved by the award of the Industrial Tribunal, preferred an appeal to this court after obtaining special leave. Whilst the appeal was pending, a settlement was arrived between the appellant and the Hindustan Steel Coal Washeries Workers" Union on 28th August, 1973 in regard to various demands which had been made by the Union on behalf of the workmen employed in the Bhojudih Coal Washery. One of the demands related to payment of bonus and this demand was adjusted by the following provision in the settlement.