Case: Baidyanath Ayurveda Bhawan Mazdoor Union, Patna Vs. Management of Shri Baidyanath Ayurveda Bhawan Private Limited and LRs

Two disputes were referred to adjudication under section 10 of the Industrial Disputes Act but the appeal is confined to only one, viz.,"whether the workmen are entitled to payment of bonus for the year 1966-67 under the Payment of Bonus Act over and above the `attendance bonus which is being paid in this establishment? If so, what should be the quantum of bonus?"The Tribunal found that the workmen were entitled to attendance bonus over and above the bonus payable under the Payment of Bonus Act, 1965 (`Act for short), and specified the amount as required under the reference. The employer challenged the Award before the High Court and contended that no separate attendance bonus was payable when bonus was being paid under the Act. A Division Bench of the High Court came to hold, concurring with the Tribunal, that the workmen in the establishment had been receiving attendance bonus from before and proceeded to examine whether such attendance bonus was included in the bonus payable to the workmen under the Act or could be claimed over and above the statutory bonus. Relying on the observations of this Court in Sanghi Jeevaraj Ghewar Chand &Ors. v. Secretary, Madras Chillies, Grains Kirana Merchants Workers Union &Anr.(1), the Court came to the conclusion that the workmen were not entitled to payment of attendance bonus for the year 1966-67 and accordingly vacated the Award.

Court's reasoning:
On the finding by the Tribunal as also the High Court that attendance bonus was being paid from before and it being outside the purview of the Act, the High Court was not right in vacating the Award. The appeal must succeed and the award on this score has to be restored. If the employer had not challenged the Award, the workmen would have had the benefit of the bonus more than a decade back. That justifies awarding of interest. While allowing the appeal of the workmen with costs, we direct that the amount found by the Tribunal for being given as attendance bonus shall carry interest at the rate of 9% per annum from the due date till disbursement.