MOON MILLS LTD Vs. RASHTRIYA MILL MAZDOOR SANGH

JUDGEMENT

(1.) This is an appeal against an order of the Judge, First Labour Court, Bombay, directing the appellant mill company to withdraw an illegal change.

(2.) The facts of this case are that the Rashtriya Mill Mazdoor Sangh, Bombay, which is a representative union made an application to the Labour Court under S. 78(1) A (c) read with S. 79(1) of the Bombay Industrial Relations Act, against the appellant company in which its case was as follows : On 1 March 1956, the sangh entered into a five year bonus agreement with the Millowners' Association, Bombay, representing its member mills. On 13 March 1956, the industrial court made an award in terms of the agreement. The appellant mill company was not a party to this agreement. Thereafter, the award was made applicable to and binding on this company by a notification by the Government of Bombay issued on 31 July, 1956 under S. 114(2) of the Bombay Industrial Relations Act. Clause (10) of the abovementioned agreement provided a scheme to determine the quantum of bonus to be paid by each member mill. The sangh and the Millowners' Association, Bombay, representing the appellant company could not determine the bonus payable to the employees of the appellant mill company for the years 1955 and 1956. So the dispute was referred to Sri M. D. Bhat as arbitrator under the agreement. On 25 April, 1958, Sri M. D. Bhat gave an award deciding the quantum of bonus payable to the employees of the appellant mill company for the years 1955 and 1956 and directing the company to pay bonus equal to 19 per cent of the basic wages for the year 1955 less the amount of bonus already paid for that year and bonus equal to 25 per cent of the basic wages for the year 1956. The sangh submitted that the company was bound to pay this bonus in pursuance of Clause (10) of the bonus award and the award of Sri M. D. Bhat, but the company did not pay this amount and thereby it made an illegal change.

(3.) The company by its written statement replied that the application filed by the sangh was bad in law and that there was no valid agreement or submission to Sri M. D. Bhat. The company was not a party to the bonus agreement dated 1 March, 1956 between the Millowners' Association and the sangh and so the award of the industrial court dated 13 March, 1956 in terms of the agreement was not binding on the appellant company. The notification issued by the Government of Bombay making the award applicable to this company was void and inoperative as the appellant mill company was not a textile mill but only a power-loom factory. Without prejudice to the contention that there was no valid reference to Sri M. D. Bhat, the company submitted that the reference to the arbitrator, having not been registered as a submission under the Bombay Industrial Relations Act, was not valid. The company's attorney wrote to Sri M. D. Bhat and inquired if the had taken necessary steps to file the award. Sri M. D. Bhat replied that the award has been sent to Little & Company, Solicitors. The award was subsequently published in the Bombay Government Gazette by the Registrar under the Bombay Industrial Relations Act.