STATE Vs. SARDAR DALIP SINGH MAJITHIA

JUDGEMENT

(1.) RESPONDENTS are Sardar Dalip Singh Majithia, Satya Jeet Singh Majithia and Works Manager, respectively of Saraya Engineering (Private) Limited, Gorakhpur. The accounting year of the Saraya Engineering Works ended on 31st October, 1968. Bonus was payable to the workers before 30th June, 1968, but bonus was not paid by the respondents. Saraya Engineering Works was inspected on 19th December, 1970 by the Labour Inspector. He found that bonus was not paid to the employees in accordance with the provisions of Section 10 of the Payment of Bonus Act. He, therefore, issued a notice to the respondents. RESPONDENTS claimed that bonus was not payable as Saraya Engineering Works had suffered losses. A complaint was, therefore, filed against respondents by the Deputy Secretary to the Government of Uttar Pradesh before the City Magistrate, Gorakhpur.

(2.) BEFORE the learned City Magistrate it was contended that Saraya Engineering Works had suffered losses, bonus was, therefore, not payable by the respondents. This plea did not find favour with him. He accordingly convicted the respondents. The learned Sessions Judge, however, accepted the contention of the respondents that in case of loss even minimum bonus was not payable. Respondents were accordingly acquitted.

(3.) THE question depends upon the interpretation of Section 10 of the Payment of Bonus Act itself which runs as follows :-