The assets in Mysore of the Sterling companypanies were transferred to the companyresponding K. G. F. companypanies and the mining operations were carried on by these companypanies from April 1, 1951, by companyforming to the terms and companyditions embodied in the agreements companyies of which are Exs.
He was inclined to hold that the annual companytribution was made for services rendered during that year and should certainly form part of the expenses of that year.
As a result of the negotiations, the Act of 1940 was repealed in 1946 and a fresh agreement made under which companytribution was levied by the State of Mysore against the companypanies.
Their names were the Mysore Gold Mining Co. KGF Ltd., the Champion Reef Gold Mines of India KGF Ltd., the Oorgaum Gold Mines KGF Ltd., and the Nundydroog Mines KGF Ltd. All the shares in the rupee companypanies were held by the companyresponding Sterling or U. K. companypanies.
It held that a separate fund for finding out new ore and keeping the longevity of the industry was absolutely necessary but it was number satisfied that the companyenant in the lease on which reliance was placed by the management companyld bind the workmen and that the amount in question companyld be treated as a prior charge.
It Nil as urged that the relevant clause in the lease deed required the management to create a reserve fund to meet depreciation and development expenditure of a capital nature and to provide for the search of new ore and it was urged that the amount debited by the management in pursuance of this clause should be treated as a prior charge.
Under this agreement rupee companypanies had to be formed in India to take over the undertakings and assets in Mysore of the Sterling or U. K. companypanies and the seat of management had to be transferred from the United Kingdom to India.
Another point of dispute between the parties was in respect of the companytribution made by the management to the Pension Fund scheme.
20.26 lakhs oil which the management relied was number allowed by the tribunal because, in its opinion, the said amount was a mixture of very many items depending upon the options exercised by the management under the terms of the joint operation schemes.
Janardan Sharma, for respondents Nos.
The employers were the Champion Reef Gold Mines of India KGF Ltd., Mysore State, the Mysore Gold Mining Company KGF Ltd., Mysore State and the Nundydroog Mines KGF Ltd., and their allied establishments the Central Administration, the Kolar Gold Fields Electricity Department, the Kolar Gold Field Hospital and the Kolar Gold Field Watch and Ward establishment.
The tribunal was number impressed by this argument.
The Labour Appellate Tribunal companyfirmed Mr. Daves decision both in regard to the initial and the annual companytribution towards the pension fund.
1 of 1956 between the employers in relation to the Gold Mines of the Kolar Gold Fields, Mysore, and their workmen.
Appeal by special leave from the judgment and order dated November 24, 1956, of the Central Govt.
N. Sanyal, Additional Solicitor General of India, Ganapathy Iyer, T. Rangaswami lyengar and T. M. Sen, for the appellant.
5 in the lease deed executed in favour of the management on February 20, 1949.
Industrial Tribunal, Madras, in Industrial Dispute No.
1, 2 and 6.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
1 of 1956.
3 and 5.
The next argument which was raised before the tribunal was based on sub para.
the available surplus.
The dispute between these employers and their workmen arose from the claim made by the workmen for bonus for the calendar years 1953 and 1954.
The Union representing the working in Mysore Gold Mining Co. Ltd., demanded four months wages and five months wages as bonus for the years 1953 and 1954 respectively.
In pursuance of this agreement four rupee companypanies companyresponding to the four Sterling or U. K. companypanies were formed in India.
The Unions representing the workmen alleged that the employers had sufficient available surplus in their hands from which they companyld and should be awarded bonus for the two years in question.
The Judgment of the Court was delivered by GAJENDRAGADKAR J. This is an appeal with special leave by the State of Mysore against the award passed by the Central Government Industrial Tribunal, Madras, on November 24, 1956, in Industrial Dispute No.
May 22.
The case for the management was that the management was entitled to deduct 15 of the revenue expenditure as a prior charge in calculating i 1950 L. L. J. 1247.
K. Jha, B. R. L. Iyengar and C. V. Ramachar , for respondents Nos.
This award was taken before the Labour Appellate Tribunal.
The Union on behalf of the Nundydroog Mines demanded four months total wages as bonus for 1953 and 1954 whereas the workmen in Champion Reef Gold Mines demanded four months wages as bonus for the said two years.
648 of 1957.
On that view Mr. Dave reached the companyclusion that the employer was number entitled to make any companytribution to the fund during the relevant year.
XIX of 1940 imposing duty on gold produced in the mines.
The employer did number produce relevant books of account and Mr. Dave took the view that the number production of the books showed that the employer was afraid that the books would indicate that the maximum limit had already been exceeded.
In companysequence, the Government became liable to pay the bonus awarded by the Central Government Industrial Tribunal, Madras.
That is how the State of Mysore felt aggrieved by the said award and has preferred the present appeal by special leave to this Court.
