http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 5
PETITIONER: WORKMEN OF THE HERCULES INSURANCE CO., LTD.
Vs.
RESPONDENT: HERCULES INSURANCE CO., LTD., CALCUTTA
DATE OF JUDGMENT: 07/12/1960
BENCH: GAJENDRAGADKAR, P.B. BENCH: GAJENDRAGADKAR, P.B. WANCHOO, K.N. GUPTA, K.C. DAS
CITATION: 1961 AIR 853 1961 SCR (2) 995 CITATOR INFO : R 1964 SC1766 (14)
ACT: Industrial Dispute--Claim of bonus--General Insurance busi- ness--Validity of reference--Industrial Disputes Act, 1947 (14 of 1947), s. 10(1)--Insurance Act, 1938 (IV of 1938), s. 31A(1)(c), proviso (vii).
HEADNOTE: In view of the unqualified and absolute prohibition contain- ed in s. 31A(1)(c) of the Insurance Act, 1938, against payment of bonus to the employees in general insurance business, the exception made by proviso (vii) to that section must be strictly confined to the limits prescribed by the said proviso. The policy underlying the proviso clearly is to exclude the intervention of Industrial Tribunals and leave the question of payment of such bonus entirely to the discretion of the Central Government. Consequently, where the workmen in general insurance business claimed bonus and the Central Government referred the dispute for adjudication to the Industrial Tribunal under s. 10(1) of the Industrial Disputes Act, 1947, and the Tribunal, on a preliminary objection under s. 31A(1)(c) of the Insurance Act, 1938, read with proviso ...