BANGALORE WATER SUPPLY AND SEWERAGE BOARD Vs. WORKMEN

JUDGEMENT

(1.) A joint request was made by the management of the Bangalore Water Supply and Sewerage Board and its workmen to the State Government to make a reference of the dispute existing between them for adjudication to the Industrial Tribunal, Bangalore. Consequently, a reference was made by the Government of Karnataka under No. SWL 579 LLD 70, dated 16th August, 1979 to the Industrial Tribunal, Bangalore on the following points of dispute:

(2.) On receipt of the reference by the tribunal it recorded evidence adduced by the parties and by its award dated 27th December, 1983 held that the employees of the Board excepting those engaged at its 4 pumping stations and two treatment plants, were not justified in demanding bonus. In arriving at the said conclusion the tribunal found that the pumping stations and the treatment plants, having been registered as factories under the Factories Act, employees working at the said stations and plants were entitled to bonus and the remaining employees of the Board were not so entitled, not only because the Board was a non-profit making organisation but also because it was a local authority within the meaning of Section 32(iv) of the Payment of Bonus Act, 1965 (hereinafter referred to as 'the Act'.)

(3.) Both the Board as also its employees are aggrieved of the aforesaid award, and have filed separate petitions challenging the validity of the same. While Writ Petition No. 19528 of 1984 has been filed by the Board, its employees have filed Writ Petition No. 4550 of 1985 & W.P. No. 16210 of 1984. In the writ petition filed by the Board it has challenged that part of the award by which employees working on its pumping stations and plants have been held entitled to the payment of bonus. The Board contends that the said finding is legally unsustainable, keeping in view the fact that it is exempt from the operation of the Act by reason of Section 32(iv) and (vXc) of the Act.