RASHTRIYA MILL MAZDOOR SANGH, NAGPUR vs THE MODEL MILLS, NAGPUR AND ANR.

The Supreme Court held that employees of an industrial undertaking managed by an authorized controller under Section 18A of the Industries (Development and Regulation) Act, 1951 are excluded from the application of the Payment of Bonus Act, 1965 as per Section 32(IV). The Court affirmed the Industrial Court's decision that the employer's contention regarding the exclusion of employees from bonus entitlement was valid. The Court also noted that the demand for bonus under the Bonus Act could not be expanded to include claims outside its provisions, as no alternative demand was made during conciliation.