Supreme Court of India · 1966-08-05
JALAN TRADING CO. (PRIVATE LTD.) vs MILL MAZDOOR UNION(With Connected Petitions)
- Citation / case number
- SC 1966/60056
- Court
- Supreme Court of India
- Petitioner
- JALAN TRADING CO. (PRIVATE LTD.)
- Respondent
- MILL MAZDOOR UNION(With Connected Petitions)
- Author
- WANCHOO, K.N.,HIDAYATULLAH, M.,SHAHC.,SIKRI, S.M.,RAMASWAMI, V.
- Bench
- WANCHOO, K.N.,HIDAYATULLAH, M.,SHAH, J.C.,SIKRI, S.M.,RAMASWAMI, V.
Judgment text excerpt
The Supreme Court upheld the validity of the Payment of Bonus Act, 1965, stating it was within Parliament's legislative competence and not a colorable exercise of power. The Court ruled that Section 36, which allows the government to exempt certain establishments, does not constitute excessive delegation of authority. Furthermore, the Court emphasized that Section 10 is essential for stabilizing bonus payments, promoting harmony between labor and capital by ensuring employees share in the establishment's profits, thus maintaining industrial peace.