KAILASH CHANDRA SONI Vs. STATE OF U P

JUDGEMENT

(1.) THIS revision is directed against an order dated 20-6- 1973 passed by Additional Sessions Judge Budaun confirming the conviction and sentence recorded against applicant under Section 38 of the Payment of Bonus Act.

(2.) IN Ujhiyani there is a Mill known as Prem Spinning and Weaving Mills. in the year 1968-69 the applicant was the Manager of the aforesaid Mill. Under law he was required to pay bonus to his workmen for the accounting year beginning from 13-4-1968 to 12-4- 1969. He, however, did not pay any bonus to his workmen. A notice was served on him, but despite that he did not make any payment of bonus to his workmen. He was said to have contravened the provisions of Section 19 (b) read with Section 10 of the Payment of Bonus Ac.: and, therefore, Sri B. B. Mathur, Deputy Secretary to Government of U. P., filed a complaint against him in the Court of S. D. M. Budaun.

(3.) THE learned counsel for the applicant urged before me that in the year 1968-69 the Mill had been running in loss and, therefore, the Management was not liable to pay bonus to the employees of the Mill. Bonus is a sort of deferred payment and the Company is bound to pay it irrespective of the fact whether it earns profit or runs in loss. THE same view has been taken by the Supreme Court in M/s. Jalan Trading Co. Private Ltd. v. Mill Mazdoor Sabha, AIR 1967 SC 691. As the applicant in his capacity as Manager of the Mill did not pay the minimum bonus to his workmen, he was rightly convicted under Section 28 of the Payment of Bonus Act.