MAHALAKSHMI SUGAR MILLS Vs. STATE OF U P

JUDGEMENT

(1.) THIS is a petition under Article 226 of the Constitution. It prays for an order in the nature of certiorari to quash the notifications dated 28th January 1959 and 24th August 1969 made under Section 3. U. P. Industrial Disputes Act. 1947.

(2.) THE petitioner is a company which carries on the business of manufacture and sale of sugar by its vacuum pan sugar factory situate in Iqbalpur, district Saharanpur, By the impugned orders the petitioner company has been directed to pay a sum of Rupees 1,09,000/- as bonus to its workmen for the crushing season 1957-58.

(3.) THE State Government considered the report of the committee and the recommendation made by the Indian Sugar Mills Association and the Labour Commissioner, and ultimately by a notification dated 28th January, 1959 passed an order under Section 3, U. P. Industrial Disputes Act directing the payment of bonus for the crushing season 1957-58. THE petitioner company was directed to pay a sum of Rs. 1,09,000/-. This order appointed a sub-committee consisting of the Labour Commissioner as Chairman and one representative of the workmen and one representative of the employer to examine and recommend to the Government the cases of factories claiming exemption from payment of the bonus. THE factories were permitted to claim exemptions on the ground that they had suffered losses or made such meagre profits during the year 1957-58 as to make it unreasonable for them to pay the amount of bonus mentioned in this order. Accordingly, the petitioner company made a claim for exemption by its letter dated 9-2-1959 on the ground that it had suffered a loss of Rs. 3,94,863. 41 nP. for the period ending 30th June 1968. THE sub-committee heard the petitioner on its claim and in its report dated 28- 5-1959 made to the Government it repelled the petitioner company's claim. Ultimately, by an order published in the Government Gazette dated 24-8-1959 the State Government passed an order under Section 3, U. P. Industrial Disputes Act directing the petitioner company to pay a sum of Rupees 1,09,000/- as bonus.