AGRO INDUSTRIES WORKERS UNION Vs. STATE OF J&K

JUDGEMENT

(1.) IN exercise of the powers conferred by section 36 of the payment of Bonus Act hereinafter called the Act, the Government of Jammu and Kashmir exempted the J&K State Agro Industries Corporation Ltd. from payment of bonus to its employees for the year 1976 -77 and 1977 -78 vide SRO 611 dated 25.9.1978, impugned in this petition, The petitioner No. 1 is a Trade Union registered vide No. 411 under the Trade Unions Act and petitioners no. 2 a workman and the president of the Union, It is submitted that the employees of the corporation were entitle to the payment of bonus for the years 1976 -77 and 1977 -78 under section 10 of the Act but despite several demands made to the management bonus was paid to the workmen of the respondent -corporation with the result that a notice forgoing on strike was served by the employees of the corporation with effect from 15.1.79. It is submitted that the negotiations were held between the employees of the employer and an agreement was Ëœsigned by the representatives of the Corporation and the petitioner trade union on 13 1. 1979 on the basis of which proposed strike was averted. The version of the management regarding bonus based upon the exemption from the payment of bonus to its employees on the basis of the impugned SRO. The petitioners claim to be directly effected by the impugned notification as they have been deprived from the payment of the bonus without affording them any opportunity of being heard or making a representation against the claim of the employer corporation. The impugned notification is alleged to be not disclosing any ground or material on the basis of which it was issued. It is not even mentioned in the impugned SRO as to whether the corporation has made any representation for exemption under the Act. The SRO is alleged to be illegal as it has been given retrospective effect. The petitioners have been deprived of a statutory right to get the bonus at the whim and caprice of the respondents. It is alleged the notification having been passed against the principles of natural justice being a non -speaking order and not based upon, any representation is liable to be quashed.

(2.) IN the objections filed on behalf of the respondents it is submitted that the respondent no. 1 in exercise of the powers conferred upon it under section 30 of the Act has validly exempted the corporation from payment of the bonus to its employees. It is submitted that the corporation is a public utility organisation and was running on loss from last many years, and could not bear the burden of the payment of the bonus. The impugned SRO was issued in view of the financial strengency of the corporation in order to save it from further burden. The issuance of strike notice the management took prompt action in the matter and called the president and secretary of the petitioner union to arrive at a settlement of the issue. It was mentioned in the agreement arrived at between the parties that in pursuance of the government notification impugned in this petition question of payment of bonus did not arise, The exemption granted was as per, terms of sec. 3o of the Act which is claimed to have been strictly complied with. The issuance of the notification was not unjust or unfair and arbitrary as alleged by the petitioners, the principle of natural justice are stated to have not been violated. It is denied that the powers under sec 36 -of the Act were exercised in an improper or mechanical manner. The notification is claimed to be legal valid and, according to law. The writ petition is alleged to be misconceived and liable to be dismissed,

(3.) I have heard the learned counsel for the parties and pursued the record.