PREMIER PRINTERS Vs. LABOUR COURT

JUDGEMENT

(1.) THE dispute regarding the quantum of the bonus payble to the workers of the petitioner for the year 1964-65 was referred to the labour court, Coimbatore, by the Government of Madras in G. O. Ms. No. 78, Industries Labour and Co-operation (Labour), dated 6th January, 1966. The labour court, Coimbatore, by its award dated 30th July, 1966, made in Industrial Dispute No. 1 of 1966 held: The workers are, therefore, entitled to bonus at the rate of 20 per cent of the total earnings. The amount received by them as advance may be deducted and the balance shall be paid to them.

(2.) IT is to quash this award of the labour court, the petitioner has filed the present writ petition under Article 226 of the Constitution of India.

(3.) MR. M. R. Narayanaswatny, learned Counsel for the petitioner, confined his attack on the award of the labour court principally to two items, the first item being an addition of a sum of Rs. 9,000 to the net loss returned as per profit and loss account as held in paragraph 9 of the award and an addition of a sum of Rs. 20,727. 53 as held by the labour court in paragraph 10 of the award. For the purpose of understanding the contention of the learned Counsel it is necessary to refer to one important feature, namely, that both the parties before me agree that the provisions of the Payment of Bonus Act are applicable to the determination of the dispute before the labour court. Under Section 4 of that Act, the gross profits derived by an employer from the establishment in respect of any accounting year in the case of any person other than a banking company shall be calculated in the manner specified in the second schedule. The second schedule to the Act states that to the net profit as per the profit and loss account certain items should be added back. One such item, shown in the second schedule, is item 3 (d) which is as follows: Capital expenditure (other than capital expenditure on scientific research which is allowed as a deduction under any law for the time being in force relation to direct taxes) and capital losses (other than losses on sale of capital assets on which depreciation has been allowed for income-tax or agricultural income-tax ).