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1959 (9) TMI 57 - HC - Indian Laws

Issues Involved: Bonus for the years 1125 and 1126, entitlement to leave with wages, entitlement to sick leave or festival holidays with pay, and compensation during factory closures.

Detailed Analysis:

1. Bonus for the Years 1125 and 1126:
The petitioners in O.Ps. Nos. 381 and 382 of 1957 challenged the award regarding bonus for the years 1125 and 1126. However, since the dispute regarding the bonus was settled between the parties, this point was not pressed, and thus, it was unnecessary for the court to consider this issue further.

2. Entitlement to Leave with Wages:
The Industrial Tribunal awarded that workers were entitled to one day's leave with wages for every 20 days of work, irrespective of the total number of days worked in a year. This was contested on the ground that Section 79 of the Factories Act requires 240 days of work in a year for such entitlement. The court held that since the cashewnut industry is seasonal, the rule applicable to factories working throughout the year cannot be applied. The Tribunal's decision was based on the practice in several factories and the need to provide earned holidays with wages. Thus, the finding on this issue did not require modification.

3. Entitlement to Sick Leave or Festival Holidays with Pay:
The Tribunal's award provided workers with two days' leave with wages for Onam, although it had initially stated one day. The respondents conceded that this was a clerical error. The court corrected this to one holiday with wages for Onam.

4. Compensation During Factory Closures:
The Tribunal awarded compensation for non-payment at the rate of one day's wage for every four days of non-employment if the period of work fell short of 245 days in a year. This was challenged on the grounds that the cashewnut industry is seasonal, and lay-off compensation should be governed by the Industrial Disputes Act, specifically Sections 25C to 25E, which do not apply to seasonal industries. The court agreed, noting that the Tribunal had no jurisdiction to award such compensation based on principles of social justice when statutory provisions did not apply. The decision on this issue was quashed.

Conclusion:
The court modified the award in respect of the following matters:
1. Workers are entitled to one holiday with wages for Onam, not two.
2. The finding regarding compensation for periods during which factories remain closed was quashed.

The original petitions were allowed to the extent indicated above and dismissed in other respects. Each party was directed to bear its own costs.

 

 

 

 

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