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indequip Engg. Ltd. Vs. State of Gujarat - Court Judgment

LegalCrystal Citation
SubjectLabour and Industrial
CourtGujarat High Court
Decided On
Judge
Reported in(1980)21GLR722
Appellantindequip Engg. Ltd.
RespondentState of Gujarat
Excerpt:
.....applicant company, the fact of bonus being deferred wage, the expectation of workers and in the event of non-payment of bonus, the likelihood of industrial unrest and its consequent advesre effect on further production and viability, is not sufficient and does not fuulfil the requirement of section 36 as interpreted by this court in (1966)iillj546sc .2. in our opinion the state government ought to have considered precisely and a bit more fully as to what actually the financial position of the appellant company was and what were the other relevant facts and circumstances which, as compared to the former, could enable the authority to arrive at a conclusion whether exeption should be granted or not' according to the supreme court, the order did not convey at all as to what weighed with..........e to the petition and is dated may 2, 1979. paragraph 4 of the order states: 'now, therefore, the state government decides not to give exemption under section 36 of the bonus act to the applicant company in the public interest.' in the matter of baroda electronics industries private ltd; a similar order in identical terms as annexure e was before this court. the high court dismissed summarily the special civil application filed by the company in that particular case and thereafter, in supreme court's c.a. no. 311/789 of 1979, the supreme court set aside the order of the high court, as, in the opinion of the supreme court, the order of the state government refusing exemption to the company under section 36 of the payment of bonus act, on the face of it, seemed 'to be a mechanical order.....
Judgment:

B.J. Divan, C.J.

1. In this case the petitioner challenges the order passed by the respondent herein refusing exemption to the petitioner from the payment of bonus. The order is Annexure E to the petition and is dated May 2, 1979. Paragraph 4 of the order states: 'Now, therefore, the State Government decides not to give exemption under Section 36 of the Bonus Act to the applicant company in the public interest.' In the matter of Baroda Electronics Industries Private Ltd; a similar order in identical terms as Annexure E was before this Court. The High Court dismissed summarily the special civil application filed by the company in that particular case and thereafter, in Supreme Court's C.A. No. 311/789 of 1979, the Supreme Court set aside the order of the High Court, as, in the opinion of the Supreme Court, the order of the State Government refusing exemption to the company under Section 36 of the Payment of Bonus Act, on the face of it, seemed 'to be a mechanical order without application of proper mind. Merely to say that in the order that the Government have taken into consideration the say of the company and the workers regarding the financial position of the applicant company, the fact of bonus being deferred wage, the expectation of workers and in the event of non-payment of bonus, the likelihood of industrial unrest and its consequent advesre effect on further production and viability, is not sufficient and does not fuulfil the requirement of Section 36 as interpreted by this Court in : (1966)IILLJ546SC .

2. In our opinion the State Government ought to have considered precisely and a bit more fully as to what actually the financial position of the appellant company was and what were the other relevant facts and circumstances which, as compared to the former, could enable the Authority to arrive at a conclusion whether exeption should be granted or not' According to the Supreme Court, the order did not convey at all as to what weighed with the Government as against the claim of the appellant company in refusing its prayer for exemption. The Supreme Court allowed the appeal, set aside the order of the State Government and remitted the case back to it for a fresh consideration and disposal of the appellant's application under Section 36 of the Payment of Bonus Act in the light of the order.

3. In view of this decision of the Supreme Court, this special civil application is allowed and the order, Annexure E to the petition, is quashed and set aside. The matter is remitted beck to the State Government for a fresh consideration and disposal of the petitioner's application under Section 36 of the Payment of Bonus Act in the light of the above decision of the Supreme Court. It must also be pointed out that in the light of the other decision the Supreme Court, the decision of the Government must be speaking order setting oat reasons for its conclusion. There will be no order as to costs Rule made absolute accordingly.


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