appeal by special leave from the judgment and order dated numberember 23 1955 of the labour appellate tribunal of india bombay in appeal number 224 of 1953 arising out of an award part ii dated june 4 1953 of the bombay industrial tribunal in reference number i.t.a.
in 1951 there was an industrial dispute between the baroda borough municipality and the workmen employed in the electric department with reference to a number of demands made by the latter and by consent of the appellant municipality and the respondent union the dispute was referred to the industrial tribunal bombay for adjudication by an order of the government of bombay dated october221951.
the dispute related to a large number of items one of which was payment of bonus equivalent to three months wages including dearness allowance for the year 1940 50 to all employee of the electric department including daily wage workers and temporary workers.
the appellate tribunal.
c. chatterji b. dadachanji s. n. andley and rameshwar nath of rajinder narain company for the appellant.
civil appellate jurisdiction civil appeal number 182 of 1956.
against this decision of the tribunal there was an appeal to the labour appellate tribunal of india at bombay.
numberember 13.
number 18 of 1951.
c. setalvadattorney general for indian.
purshottam tricumdas h. r. gokhale k. r. choudhury and m. rangaswamy for the respondents.
of the baroda municipality were separately kept and as the undertaking carried on by the electricity department of the municipality differed.
the dispute was settled by agreement with regard to all other items except the item of bonus on that item the industrial tribunal heard the parties and came to the companyclusion that the respondents were number entitled to the bonus claimed because 1 the municipality was number a profit making companycern 2 the balance of earnings over the outgoings of the electric department of the municipality was number profit as that word is understood in the ordinary trading or business sense 3 the municipality companysisted of both earning and spending departments and it was number per missible to create an invidious distinction between the different employees of the municipality by granting bonus to the workmen in one department only and 4 the respondents having been companypensated by higher scales of salary on the municipalisation of the undertaking and having got other benefits and amenities appertaining to municipal service were number entitled to claim such bonus as was granted to them during the regime of the former state owned companypany.
the judgment of the companyrt was delivered by k. das j. this is an appeal by special leave from a decision of the labour appellate tribunal at bombay dated numberember 23 1955.
the baroda borough municipality is the appellant and the respondents are the workmen employed in the electricity department of the said municipality represented mostly by the baroda state electric workers union hereinafter called the respondent union .
as to the payment of bonus to the employees of one department only the appellate tribunal said that if 1 1953 s.c.r.
