K.C. P. EMPLOYEES' ASSOCIATION, MADRAS vs MANAGEMENT OF K. C. P. LTD., MADRAS

The Supreme Court upheld the decision of the Madras High Court regarding the applicability of the proviso to Section 3 of the Payment of Bonus Act, 1965, in a dispute between the management of K. C. P. Limited and the workmen's union over bonus claims for the years 1964-65 and 1965-66. The Court affirmed that the Central Workshop was a separate undertaking, thus rejecting the workmen's claim for bonus based on overall profits of the company. The appeals were dismissed, maintaining the High Court's ruling that the awards by the Tribunal were correctly set aside.