The settlements were approved by the Board of Directors of the L.I.C. and also by the Central Government.
On 29th March, 1974, a circular was issued by the L.I.C. for payment of bonus in accordance with the settlement along with the salary in April.
Orders were again passed on 14 4 1962 and 3rd August 1963, the effect of which was to remove the restriction of Rs.
On 29th January 1963, another settlement was arrived at between the L.I.C. and its employees for payment of cash bonus at the rate of one and a half months basic salary.
It is clear that this so called bonus did number depend upon profits earned but was numberhing short of increas ed wages.
5001 per month.
On 29th May 1976, the Life Insurance Corporation Modification of Settlement Act 1976 was enacted by Parliament denying to the petitioners the right which had been recognised by the settlements, approved by the Central Government and acted upon by the actual payment of bonus to the employees, and, finally, companyverted into right under the decision of the Calcutta High Court on 21st May 1976.
Against this, a writ petition was filed in the High Court of Calcutta.
5001 for eligibility for payment of bonus.
On 26 6 1959, an order was passed by the Central Government under s. 11 2 of the Act, amending para 9 of the 1957 Order inasmuch as it was provided that bonus other than profit sharing bonus would be paid to the employees drawing the salary number exceeding Rs.
On 21st January 1974 and 6th February 1974, settlements for payment of cash bonus at 15 per cent of gross wages, valid for four years from 1st April 1973 to 31st March 1977, were reached.
On 25th September 1975, however, a Payment of Bonus Amendment Ordinance was promulgated.
108 and 174 177 of 1976.
a settlement between the L.I.C. and the employees providing for payment of cash bonus at the rate of one and a half months basic salary which was to be effective from 1 9 1956 and valid upto 31 12 1961.
In April 1974, the payment of bonus for the year 1973 74 was actually made in accordance with the settlement.
ORIGINAL JURISDICTION Writ Petitions Nos.
On 26 6 1972, a fourth settlement for payment of cash bonus at the rate of 10 per cent of gross wages basic and special pay and dearness allowance was made effective from 1st April 1972 to 1973.
Again, in April 1975, bonus for the year 1974 75 was made in accordance.
This was to companytinue in operation until 31st March 1969.
On 2nd of July 1959, there was.
On 20th June 1970, a third settlement was reached for payment of cash bonus at the same rate which was to be effective upto 31st March 1972.
On 26 9 1975, the I.C. issued a circular stating that, as the payment of bonus was being reviewed in the light of the Ordinance, and, on 22nd of March, 1976, payment of bonus for the year 1975 76 was to, be withheld until a final decision was taken.
The Life Insurance Corporation preferred a Letters Patent Appeal against the judgment of the learned Single Judge but in the mean time the impugned Act bad already companye into force and it was, therefore, stated on behalf of the Life Insurance Corporation before the Division Bench that there was numbernecessity for proceeding with the appeal and hence the Division Bench made numberorder in the appeal.
with the settlements.
In July 1960, regulations were framed under section 49 to regulate the companyditions of service of classes of employees and regulation 58 provided for payment of number profit sharing bonus to the employees.
