MADRAS METROPOLITAN WATER SUPPLY AND SEWERAGE BOARD OFFICIAL AND EMPLOYEES UNION Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THE Writ Appeal raised the following question for consideration:- Whether the employees of Madras Metropolitan Water Supply and Sewerage Board are entitled for payment of bonus under THE Payment of Bonus Act, 1965?

(2.) THE facts that give rise to the above issue in brief are as follows:-Madras Metropolitan Water Supply and Sewerage Board Employees' Union had made a demand for bonus, which was ultimately referred to the Industrial Tribunal, Chennai for adjudication. THE Industrial Tribunal in turn adjudicated the dispute in I.D.No.13 of 2005 and dismissed the same on 27.07.2006 on the ground that in spite of several notices, the petitioner was not served. THE very same Union filed W.P.No.13760 of 1989 seeking for a direction for payment of bonus. Among other things, the union claimed the benefit of the order of the Division Bench of this Court in W.P.No.1205 to 1210 of 1984 and 250 of 1985 dated 13.04.1989 which was subsequently reported in 1991 (II) L.L.J. 494 (Tamil Nadu Water Supply and Drainage Board Engineers Association, etc. v. State Government of T.N. And Tamil Nadu Water Supply and Drainage Board). In the said judgment, the Division Bench considered the question as to whether the Tamil Nadu Water Supply and Drainage Board, is an institution established for the purpose of profit and it is excluded as per Section 32 (v) (c) of THE Payment of Bonus Act, 1965 (hereinafter referred to as "THE Bonus Act"). After referring to various provisions of the said Act, the Division Bench ultimately held that the Tamil Nadu Metro Water Supply and Drainage Board is an institution established for the purpose of profit and consequently directed the provisions of the Payment of Bonus Act, 1965, to be applied to the employees of THE Tamil Nadu Water Supply and Drainage Board.

(3.) MR. K. Shanmugakani, learned counsel appearing for the Appellant would submit that both the provisions of The Tamil Nadu Water Supply and Drainage Board, 1970 and The Chennai Metropolitan Water Supply and Sewerage Act, 1978 are identical in all respects including the object for the enactment of the Board, its powers and functions, finance, accounts and audit, etc. Under similar provisions, the Division Bench had found that The Tamil Nadu Water Supply and Drainage Board cannot claim exemption under Section 32(v)(c) of The Payment of Bonus Act, on the ground that it is not an institution established for the purpose of profit, the judgment of the Division Bench were taken to the Supreme Court by the Board and those Civil Appeals Nos. 3506-12/91 were dismissed on 24.03.1998. Hence, the common judgment of the Division Bench which was confirmed by the Supreme Court squarely applies to the case on hand and consequently, the member of the Writ Petition Union are entitled to the benefit of The Payment of Bonus Act, 1965.