SARVARAYA TEXTILES LTD Vs. ALLADA LAKSHMANARAO

JUDGEMENT

(1.) This is an application for the issue of a writ of certiorari to quash the order of the Authority under the Payment of Wages Act, dated 14th October, 1965.

(2.) It arises in the following circumstances : The petitioner voluntarily declared a bonus to be paid to the employees for the year 1963-64. The declaration said that each worker will get 4 months of basic pay by way of bonus. This bonus was on the basis of profits made by the company. The employees accordingly received amounts and delivered receipts. After sometime, however, about 100 or 150 employees of the company filed an application under section 15 (2) of the Payment of Wages Act with the authority under that Act contending that under the recommendation of the Wage Board award, a part of the D.A. that is to say, Rs. 37-50 should have been merged with the basic wage and after merging the said amount with the basic wage, 4 months' bonus should have been paid to each of the worker. The company raised a preliminary objection that since the dispute is in regard to bonus, it does not fall within the definition of " wages " as is given in the Act and consequently, the authority under the Act has no jurisdiction to entertain the application. The authority posed the question properly, but answered that the voluntarily declared bonus of 4 months is also a 'wage ' within the meaning of that term. It is this view that is now assailed in this Writ Petition.

(3.) The same contention has been raised by Mr. Srinivasa Murthy, the learned Counsel for the petitioner before me. In order to appreciate the contention, it is necessary to examine the definition of ' wages ' as it appears in section 2 (w) of the Act. It is as follows, in so far as it is relevant. " 'Wages' means all renmuneration, (whether by way of salary, allowances or otherwise) expressed in terms of money or capable of being so expressed which would, if the terms of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment, and includes :- (a) * * * * * (b) * * * * * (c) any additional remuneration payable under the terms of employment (whether called a bonus or by any other name) : (d) * * * * * (e) * * * * * but does not include- (1) any bonus (whether under a scheme of profit sharing or otherwise) which does not form part of the remuneration payable under the terms of employment or which is not payable under any award or settlement between the parties or order of a Court."