S G PHARMACEAUTICALS Vs. SARABHAI CHEMICAL STAFF ASSOCIATION

JUDGEMENT

(1.) Rule. In view of the facts and circumstances of the case and with the consent of Mr. K. S. Nanavati and Mr. M. S. Mansuri this petition is taken for final hearing.

(2.) The petitioner has filed the present petition to challenge the award passed by the Industrial Tribunal, Baroda in Reference No. 17 of 1991 published on 4th June, 1997. By the said award petitioner is directed to make payment of 19% of wages as bonus on the basis of productivity to the employees for the accounting year 1988-89.

(3.) The petitioner is one of the unit of Ambalal Sarabhai Enterprises Ltd., engaged in manufacturing of pharmaceuticals formulations and bulk drugs. About 1,400 employees are employed by the petitioner and they are the members of the three workers union who are respondent Nos. 1 to 3. The provisions of Payment of Bonus Act, 1965 are applicable to the petitioners. The petitioner offered bonus at the rate of 8.33% for the accounting year 1988-89. But the same was not accepted by the workmen and they insisted for payment of bonus linked with productivity. Then the petitioner-Company and the respondent-Unions arrived at an agreement under Sec. 10(2) of the Industrial Disputes Act, 1947 to refer the said dispute pertaining to Payment of Bonus for accounting year 1988-89 to the Industrial Tribunal referring the following terms of reference : 1. To determine the questions of bonus payable to the employees for the accounting year 1988-89 as per the provisions of the Payment of Bonus Act, 1965, or 2. To determine the norms for payment of bonus linked with the productivity for the accounting year 1988-89. The said reference dispute was referred to the Industrial Tribunal, Baroda and it is numbered as 17 of 1991.