Mill Owners' Association, Bombay v.

Rashtriya Mill Mazdoor Sangh,

Bombay 1950 (II) LLJ 124

FACTS

The sangh is the representative union of cotton textile workers in the city
Bombay. From 1941 through 1945 the mills, represented by the mill owner
Association for voluntarily declared bonuses in 1941. And in 1942 to 1945 1/6
th annual earnings. In 1946 to 1947, is 1/5th and 1/6th of the annual earnings for
two year it is awarded by Industrial court. In 1947 the association paid a bonus
equivalent to one month wages in additional as an Independence Bonus. In 1948
the court awarded 3/8th of the total basic earning. In 1949 a dispute arose over
bonus. The Industrial Court awarded 1/6th of the basic earnings as bonus to all
employees, whether permanent or temporary, in all the 55 mills. So the
Association appealed that award and contended that no bonuses ought have
been given because there no surplus left after setting apart from the gross profit
for 1949 sum necessary to meet prior charges. So this case is filed in the
Tribunal.

RESEARCH OBJECTIVE
The objective is to analyse the dispute between the employer and employee in
giving bonus in the Mill owners association case.

ISSUE
Whether the ex-gratia is compulsory payment?
Whether the employee can raise an industrial dispute for non payment of bonus?
Whether the bonus is temporary satisfaction?

RESEARCH METHODOLOGY
The researcher used case analysis in this project