2.50 lacs by way of provision for debenture redemption fund.
the total capital block as shown in page 5 of the balance sheet for the year ending june 30 1955 was rs.
appeal by special leave from the award dated january 14 1957 of the industrial tribunal at bombay in reference i. t. number 75 of 1956.
it denied that it bad made huge profits during the year in question and submitted that the profits made were number even sufficient to provide for the prior charges etc.
for the year 1950 51 the appellant made a provision for rs.
150000 for 1953 54 rs.
respondent number i filed their statement of claim before the tribunal on june 29 1956.
the appellant was thus entitled to rs.
75000 and further provision had to be made for redemption of debentures in a sum of rs.
the following were prescribed as the first charges on 1 1950 l.l.j.
250000 had been made by it for debenture redemption reserve.
the respondents are the workers employed in the appellants factory at antop hill wadala bombay.
civil appellate jurisdiction civil appeal number 54 of 1958.
75000 for debenture redemption fund for 1951.52 rs.
150000 for 1952 53 rs.
the conciliation proceedings went on before the companyciliation officer upto march 23 1956 on which date both the parties arrived at and executed an agreement to refer the matter to an industrial tribunal for adjudication.
350000 as the annual sum to be set apart though as a matter of fact in the balance sheet only a provision of rs.
it has factories in different parts of india pakistan and ceylon.
the judgment of the companyrt was delivered by bhagwati j. this appeal with special leave challenges the award made by the industrial tribunal bombay in reference it number 75 of 1956 between the appellant and the respondents whereby the industrial tribunal awarded to the respondents 4 1/2 months basic wages as bonus for the year 1954 55 year ending june 30 1955 .
they also alleged that the wages paid to them by the appellant fell short of the living wage and therefore the appellant should pay the in six months basic wages as bonus for the relative year.
19029954.
in october 1955 respondent i who are workmen represented by the engineering mazdoor sabha made a demand for the payment of six months wages as bonus for the year 1954 55.
the formula evolved by the full bench of the labour appellate tribunal in millowners association bombay v. rashtreeya mill mazdoor sangh bombay 1 is based on this idea that as both labour and capital companytribute to the earnings of the industrial companycerti it is fair that labour should derive some benefit if there is a surplus after meeting prior or necessary charges .
the claim of the appellant was for a sum of rs.
2450000.
136 of the constitution and hence this appeal.
being aggrieved by the said award of the tribunal the appellant applied for and obtained from this companyrt special leave to appeal against the same under art.
the appellant filed its written statement in answer on august 14 1956.
in so far as 7 more years were left before the due date for redemption the appellant claimed rs.
may 5.
the appellant submitted that after providing for the prior charges according to the formula laid down by the labour appellate tribunal the profits made during the year under companysideration did riot leave any surplus and tile respondents were number entitled to any bonus.
v. phadke t. s. venkataraman k. r. sharma and k. r. chaudhury for respondent number i and the intervener.
such bonus shall be paid within one month of receipt of application provided that numberclaim can be enforced before six weeks from the date this award becomes enforceable.
c. setalvad attorney generalfor india and i. n. shroff for the appellants.
the appellant is a subsidiary of the premier companystruction co. limited and manufactures hume pipes.
they alleged that the profits of the appellant during the year 195455 were higher than those during the year 1953 54 for which year the appellant had paid four months basic wages as bonus.
accordingly on april 30 1956 both the parties drew up and signed a joint application for referring the dispute for adjudication to a tribunal and the government of bombay thereupon in exercise of the powers companyferred by sub s. 2 of s. 10 of the industrial disputes act 1947 by its order dated june 11 1956 referred the following dispute to the tribunal demand every workman daily rated should be paid bonus for the year 1954 55 year ending 30th june 1955 equivalent to six months wages without it attaching any condition thereto .
the matter was also referred to the companyciliation officer requesting him to initiate companyciliation proceedings.
in addition to these various sums allowed to the appellant by way of prior charges against the gross profits earned during the accounting year the tribunal also allowed to the appellant rs.
