CHENNAI: Holding that the court does not want to ‘transgress’ into the domain of lawmaking to review the Bonus Act, 1965 with respect to the exemptions to educational institutions, the Madras High Court has recently turned down an appeal filed by a workers union seeking bonus from a deemed university.
Even though Balan Haridas, counsel for the appellant union, made a valiant attempt to persuade the court “to step in and qualify the exemptions” by stating the concept of the university and educational institutions at the time of enacting the law in 1965 and the current situation, the bench of Justices R Subramanian and K Kumaresh Babu refused to review the merits of exemption.
The bench observed, “We do not think that we can embark upon such an exercise. We would be transgressing and entering upon the arena of law-making if we are to carry out the exercise suggested by the counsel for the appellant.”
Concurring with the submissions of senior counsel S Ravindran, the bench said the Code of wages 2019, enacted by the Parliament contains a similar exemptions clause in section 41 of Chapter IV which deals with the payment of bonuses.
The Parliament thought it fit to exempt educational institutions and universities from the purview of payment of bonuses and this would largely establish the “intendment remains the same” as of today.
Pointing out that the legislature thought it fit to qualify certain Institutions on the basis of profit, it did not do so when it came to universities and educational institutions, the judges said, “Therefore, we are unable to fault the writ court when it concluded that the provisions of the Act being unambiguous and clear they will have to be given effect to.”
The matter related to an appeal filed by Pudiya Jananayaga Vagana Ottunargal Mattrum Technical Union challenging the order of a single judge who ruled in favour of the exemption granted to educational institutions on payment of bonuses.
The demand for payment of bonuses to the members affiliated with the union, employed with the transport section of Sathyabama University, was turned down by the management citing the exemption under section 32 (V) (b) of the Payment of Bonus Act, 1965. The union contended that the university was collecting huge fees from the students and is making a profit by operating vehicles; so it cannot claim an exemption.