83,639, it came to the companyclusion that the Company would number be entitled to any allocation as a prior charge for rehabilitation.
60 lakhs out of this amount it deducted Rs.
The Industrial Court disallowed this item for the following reasons It estimated the amount required for rehabilitation at Rs.
83,639, the Industrial Court rightly excluded the entire rehabilitation amount from its calculations in arriving at the surplus.
Appeal by special leave from the Award dated August 20, 1957, of the Industrial Court, Bombay, in Reference IC No.
60,000 as the amount that should be set apart for the year in question for rehabilitation.
60,000 during the bonus year and as the statutory depreciation was Rs.
The arbitrator, i.e. the Industrial Court, following the Fall Bench Formula, ascertained the surplus to be Rs.
2.20 lakhs after deducting the prior charges from the gross profits of the Company, but it did number give any credit to the rehabilitation amount apart from the statutory depreciation.
The respondent on behalf of the employees issued a numberice to the appellant under s. 42 2 of the Bombay Industrial Relations Act, 1946, demanding payment of reasonable bonus for the period from January 1, 1955 to December 31, 1955.
CIVIL APPELATE JURISDICTION Civil Appeal No.257 of 1958.
As the balance of Rs.
S. N. Andley, J. Dadachanji and Rameshwar Nath,for the appellant.
P. Maheshwari, for the respondent.
Negotiations in this regard having failed, the respondent made a reference to the Industrial Court under s. 73A of the said Act for arbitration of the dispute arising out of the said numberice.
The respondent, Rashtriya Girni Kamgar Sangh, represents the employees of the appellant Company.
60 lakhs fixed by it towards rehabilitation.
1960 January 22, The Judgment of the Court was delivered by SUBBA RAO J. This appeal raises the question as to what extent the reserves can be deducted from the amount required for rehabilitation of plant and machinery and also as to the manner by which the deductible reserves can be ascertained.
N. Shroff, for Interveners Nos.
197 of 1956.
The Intervener No.
3 did number appear.
9 lakhs spread over 15 years came to only Rs.
The appellant, Khandesh Spinning and Weaving Mills Company Limited, is a textile mill and its factory is situate at Jalgaon.
K. Daphtary Solicitor General of India.
1 and 2.
As the statutory depreciation was Rs.
