PUDIYA JANANAYAGA VAGANA Vs. THE MANAGEMENT SATHYABAMA UNIVERSITY

JUDGEMENT

(1.) The employees Union which failed in its attempt to garner the benefits of the Payment of Bonus Act, 1965 to its Members, who work as Drivers in the Transport Department of the first respondent University is on Appeal.

(2.) The Union raised the Industrial Dispute under Sec. 2(k) of the Industrial Disputes Act, seeking an award to the effect that the Payment of Bonus Act, 1965, would apply to its members, who are employed as Drivers and Technicians in the Transport Sec. of the first respondent University. The dispute was referred to the Conciliation Officer and before the Conciliation Officer, the respondent University claimed that it is exempt from the purview of the said enactment in view of Sec. 32(v)(b) of the Payment of Bonus Act, 1965.

(3.) The contention of the Union was that since the respondent University is collecting huge fees from the students and is running it as a business making profit out of the operation, cannot claim exemption under Sec. 32(v)(b) of the Payment of Bonus Act, 1965. It is also contended that the Transport Department of the University will be an establishment by itself and if the operations result in profit then the workers of the Transport Department would be entitled to Bonus. The principle that bonus is a part of the profit is also invoked by the Union.