IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE SEVENTEENTH DAY OF APRIL TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MR JUSTICE L.NARASIMHA REDDY WRIT PETITION NO : 8373 of 2008 Between: 1 The Ettikoppaka Sugar Factory Employees and Workers Union (REgd. No. 578/82) Darlaudi, Visakhapatnam District rep. by its Joint Secretary, U.Ramachandra Raju. 2 M.V.K.Raju S/o.Ramachandra Raju Darlapudi, Visakhapatnam District. ... PETITIONERS AND 1 The Ettikoppaka Coop Sugar Factory Ltd. rep. by its Managing Director, Darlapudi, Visakhapatnam District. 2 The Joint Collector-cum-Person In-Charge, The Ettikoppaka Coop Sugar Factory Ltd., Darlapudi, Visakhapatnam District. 3 The Director of Sugar and Cane Commissioner, Government of A.P., Shakker Bhavan, Near L.B. Stadium, Hyderabad. ...RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to issue a writ, order direction more particularly one in the nature of Writ of Mandamus declaring the inaction on the part of the first respondent in not paying the bonus to the employees of the first respondent sugar factory for the financial year 2006-2007 as illegal, arbitrary and against the provisions of the Payment of Bonus Act, 1965 and consequently to direct the respondents to pay the maximum bonus at the rate of 20% to the employees of the first respondent sugar factory for the financial year 2006-07 and pass such other order or orders. Counsel for the Petitioners : MR.V.V.N.NARAYANA RAO Counsel for the Respondent No.: GP FOR INDUSTRIES & COMMERCE The Court made the following : O R D E R: The 1st petitioner is the workers union and 2nd petitioner is an employee of the 1st respondent Co-operative Sugar Factory. They seek a direction to the 1st respondent, to pay bonus at 20%, for the financial year 2006-07. Heard the learned counsel for the petitioners, and learned counsel for the 1st respondent. Payment of bonus to employees of an Industrial establishment, is governed by the Payment of Bonus Act. The obligation to pay bonus, and the rate, at which it must be paid, would depend upon the financial condition of the industry. Even where the industry violates the provisions of the Act, the authority constituted under that Act, is vested with the power to ensure compliance. On their part, the petitioners claimed to have made a representation to the 1st respondent, to pay bonus for the financial year 2006-07. The question as to whether the 1st respondent is under obligation to pay bonus for that year, and if so, the rate at which it has to be paid, needs to be examined by the 1st respondent, and an early decision in this regard would obviate unnecessary complications. The writ petition is disposed of, directing the 1st respondent to pass appropriate orders on the representation made by the petitioners, as regards payment of bonus for the financial year 2006-2007, within a period of six weeks from the date of receipt of a copy of the order. There shall be no order as to costs. _________________ 17th April 2008 Note: Issue C.C. in two days. (B/o) PAN