LAWS(BOM)-1991-10-7

PHOENIX MILLS LTD Vs. STATE OF MAHARASHTRA

Decided On October 03, 1991
PHOENIX MILLS LTD. Appellant
V/S
STATE OF MAHARASHTRA Respondents

JUDGEMENT

(1.) THE first petitioner is the Phoenix Mills Ltd. engaged in the business of spinning yarn and weaving and processing of cloth and the second petitioner is one of its share-holders. They have filed the present petition seeking to impugn the order dated 8th June 1983 (Exhibit II to the petition) passed by the Government rejecting the petitioner's application dated 25th October 1982 (Exhibit-C) under Section 36 of the Payment of Bonus Act (21 of 19 6 5) for exemption to pay the minimum bonus to the workers, which at the rate of 8. 33% works out to a sum of Rs. 26,60,000/ -. The first respondent is the State of Maharashtra. The second respondent is the under Secretary to the Government in the Industries Energy and Labour Department and the third respondent is the Rashtriya Mill Mazdoor Sangh which represents the workmen of the petitioners. A few facts leading to the filing of the petition may be stated.

(2.) ON 2nd September 1977 a catastrophic fire engulfed the three storied building which housed the first petitioner Mills. Apart from the damage caused to the building, only 14,500 out of the total of 96,000 spindles could be saved. On 30th October 1977 the petitioners filed their applications before the Government under Section 36 claiming exemption from payment of the bonus for the year ending 31st March 1977. On 1st November 1977 the said application was rejected. The petitioners carried the matter to this Court by filing Writ Petition No. 1566 of 1977 which came to be summarily rejected by the learned Single Judge on 9th November 1977. The petitioners carried the matter in appeal being Appeal No. 214 of 1977 wherein the Division bench allowed the appeal on 2nd December 1977, issued Rule on the writ petition and remanded the matter back to the learned Single Judge for disposal on its own merits and in accordance with law. Pending the aforesaid writ petition the Government, on 8th December 1977, issued a letter to the petitioners affording fresh hearing on the application for exemption. On 20th December 1977 the Government passed an order granting exemption as prayed for. In view of the relief granted, nothing now survives in the aforesaid Writ Petition No. 1566of 1977.

(3.) ON 12th September 1978 the petitioners filed their second application for exemption for the year ended 31st March 1978 and by an order dated 7th September 1979 (Exhibit A to the petition) the same was granted. On 4th January 1979 the first petitioner Mills was declared a relief undertaking (Exhibit B to the Petition ). The said declaration has been extended up to date.