HIRA LAL Vs. STATE OF PUNJAB

JUDGEMENT

(1.) Municipal Committee, Amritsar passed a Resolution dated July 14, 1973, whereby a settlement was arrived at between the Municipal Committee, Amritsar and its employees through Nagar Palika Karamchari Sangh as well as Safai Mazdoor Union. Through the aforesaid settlement, as reflected in the Resolution, Municipal Committee, Amritsar agreed to pay bonus to its employees at the rate of 8.33% for the years 1970-71 and 1971-72 which was to be continued thereafter. The aforesaid Resolution passed by the Municipal Committee was annulled by the State Government. Aggrieved against the aforesaid order of annulment, the employees of the Municipal Committee approached the Labour Court under Section 33-C(2) of the Industrial Disputes Act, 1947. The aforesaid application filed by the employees was dismissed by the Labour Court vide order dated August 20, 1974. The said decision of the Labour Court as well as the annulment of the Resolution of the Municipal Committee by the State Government were challenged by the employees through a Civil Writ Petition No. 6650 of 1974 before this Court. Vide an order dated November 30, 1982, the learned single Judge held that the settlement arrived at between the Municipal Committee, Amritsar and its employees was a valid settlement and that the Resolution passed on the basis of the" aforesaid settlement could not have been annulled by the State Government. Thereafter, Municipal Committee, Amritsar filed a Letters Patent Appeal No. 1 of 1983 before this Court challenging the judgment of the learned single Judge. Vide judgment dated December 10, 1984 a Division Bench of this Court dismissed the aforesaid appeal filed by the Municipal Committee. It was held that the settlement arrived at between the Municipal Committee, Amritsar and its workmen was well within the rights of the Municipal Committee and, as such, the State Government could not have annulled the Resolution. On that basis Letters Patent Appeal filed by the Municipal Committee was dismissed. A similar appeal filed by the State of Punjab, being LPA No. 111 of 1983, was also dismissed. Subsequently, Special Leave Petition filed by the Municipal Committee as well as by the State Government were also dismissed by the Apex Court vide order dated July, 29, 1985.

(2.) After the said finalisation of the litigation, the Municipal Committee, Amritsar passed a Resolution No. 720 dated September 11, 1985 whereby after acknowledging the factual position and taking note of the litigation pending between the Municipal Committee and its employees, it was decided that because of the financial constraints it would not be possible for the Municipal Corporation, Amritsar to make the payment of the arrears of the bonus in lump-sum. Therefore, with the agreement of the representatives of the employees' union, a decision was taken to make the payments by way of instalments. The following decision was taken through the aforesaid Resolution No. 720 dated September 11, 1985 :

(3.) As a consequence of the aforesaid decision, the Municipal Corporation, Amritsar made the payment of bonus to its employees for the years 1971-72, 1976-77 and also for the years 1985-86 to 1986-87.