Holding

Bonus is excluded from the definition of wages under the relevant statutes; therefore a claim for bonus cannot be pursued under Section 6‑H(l) execution proceedings but must be raised as an industrial dispute under the Payment of Bonus Act.

Summary

The employer, Mis. Hamdard (Wakf) Laboratories, terminated 37 workmen alleging an illegal strike, leading to an industrial dispute and an award reinstating 17 workers with 50% back‑wages. The workmen later filed applications under Section 6‑H(l) of the U.P. Industrial Disputes Act seeking bonus, which the Labour Commissioner allowed, treating bonus as deferred wages. The employer appealed, arguing that bonus is excluded from the definition of "wages" under both the U.P. Industrial Disputes Act and the Payment of Bonus Act, and that a bonus claim cannot be pursued through execution proceedings. The Supreme Court held that bonus is not a component of wages and that Section 6‑H(l) cannot be used for such a claim; instead, a bonus dispute must be raised as an industrial dispute under the Payment of Bonus Act. Consequently, the Court set aside the Labour Commissioner’s order and allowed the appeal.

Issues considered

Whether bonus falls within the definition of "wages" under the U.P. Industrial Disputes Act, 1947 and the Payment of Bonus Act, 1965.
Whether a claim for bonus can be made under Section 6‑H(l) of the U.P. Industrial Disputes Act (an execution proceeding).
Whether the Labour Commissioner has jurisdiction to determine the right to bonus under the Payment of Bonus Act.
Whether the Labour Commissioner erred in treating bonus as a deferred wage.
Interpretation of statutory clauses using the words "includes" versus "means and includes".

Legislation cited

Industrial Disputes Act, 1947s. 2(rr)
Payment of Bonus Act, 1965s. 10, s. 22, s. 2(21), s. 39
Payment of Wages Act, 1936s. 2(vi)
U.P. Industrial Disputes Act, 1947s. 11-B, s. 2(y), s. 33C(2), s. 33C(l), s. 6-H(l)

Subjects

bonuswagesindustrial disputeexecution proceedingstatutory interpretationU.P. Industrial Disputes ActPayment of Bonus ActLabour Commissioner jurisdiction

Judgment

MIS. HAMDARD (WAKF) LABO RATORIES A
v.
DEPUTY LABOUR COMMR. AND ORS.

APRIL 27, 2007

[S.B. SINHA AND MARKANDEY KATJU, JJ.] B

U.P. Industrial Disputes Act, I 947:

S.2(y)-Bonus is neither wage nor allowance-Payment of Bonus Act,
1965-S.2(21). c
S.6-H(l)-Proceedings under-Nature of-Held: Is in the nature of
executing proceedings-Authority vested with power thereunder cannot
determine any complicated question of law--Claim for bonus by workmen
can be made by raising an industrial dispute-It cannot be raised by execution D
application.

Interpretation of Statutes:

Interpretation clause using the word 'include' vis-a-vis word 'mean
and include '-Distinguishing features between.
E
The appellant-employer terminated the respondent-workers on the
ground that they had gone on an illegal strike. It gave rise to industrial
dispute. The Industrial Court gave an award directing the employer to
reinstate the terminated workers on original post and pay scale and to pay
)' 50% of back wages/allowance. The said award attained finality as the writ p
petition and SLP against it was dismissed.

The workers filed application under S.6-H(l) ofU.P. Industrial Disputes
Act, 1947 claiming back wages and bonus. Additional Labour Commissioner
held that workers were not entitled to claim bonus.
G
J- The workers filed another application before the Labour Commissioner
claiming bonus. Labour Commissioner held that workers were entitled to
bonus, because bonus is deferred wage. Appellant unsuccessfully filed review
and then writ petition before the High Court.
873 H
874 SUPREME COURT REPORTS [2007] 5 S.C.R.
',. .r
A In appeal to this Court, appellant contended that in view of the definition
of'wages' contained ins. 2(y) of the Act ands. 2(21) of the Payment of Bonus
Act, bonus is neither wages nor allowance; that the Labour Commissioner
committed a manifest error in directing payment thereof on the spacious plea
that it is deferred wages and that in order to interpret a judgment, the terms
used therein, in the event of any ambiguity, must be interpreted in the light of
B the statute operating in the field.

Allowing the appeal, the Court )

HELD: I. Different statutes, enacted by the Parliament from time to
c time, although beneficial in character to the workmen, seek to achieve
different purposes. Different authorities have been prescribed for enforcing
the provisions of the respective statutes. The authority under the Payment
Wages Act is one of them. In view of the fact that diverse authorities exercise
jurisdiction which may be overlapping to some extent, the courts while
interpreting the provisions of the statutes must interpret them in such a
D manner so as to give effect thereto. (Paras 16 and 17) (883-F; 884-AJ

Kohinoor Tobacco Products Pvt. Ltd., Adyal v. Presiding Officer, Seco1;1d »+
Labour Court, Nagpur and Ors., AIR (1986) Born 340, referred to.

2. S.6-H(I) of the U.P. Industrial Disputes Act, 1947 provides for a
E proceeding which is in the nature of an execution proceedings. The said
provision can be invoked in the event any money is due to a workman under
an award. They cannot be invoked in a case where ordinarily an industrial
dispute can be raised and can be referred to for adjudication by the appropriate
government to an industrial court. The authorities to determine a matter
'{
F arising under s.6-H(I) of the Act and an industrial dispute raised by the
workmen are different. The authority vested with the power thereunder cannot
determine any complicated question of law. It cannot determine dispute in
regard to existence of a legal right. It cannot usurp the jurisdiction of the
State Government under s.11-B of the Act. (Para 18) (876-A, B, CJ

G Sanghi Jeevaraj Ghewar Chand & Ors. v. Secretary, Madras Chillies, .{'
Grains Kirana Merchants Worker's Union & Anr., [1969) 1 SCR 366, held
inapplicable.

3.1. A Labour Commissioner is not a judicial authority. In view of s.11-
H B of the Act, it is for the State Government to construe an award, in the event
HAMDARD (WAKF) LABORATORIES v. DEPUTY LABOUR COMMR. 875
any dispute arises in giving effect thereto. The Labour court in its award A
directed reinstatement of 17 workmen on the original post and pay scale. No
increment was granted; no continuity of service was directed. What was
directed was payment of 50% of the back wages/allowance while considering
the question of backwages. [Paras 19 and 20) [884-D, E)

3.2. Definition of 'wages' within the meaning of the Act does not include B
"bonus". It, however, includes allowance. Payment of Bonus Act also excludes
bonus for the purpose of calculating the amount of wage to be determined in
terms of section 10 thereof. [Para 211 [884-E, Fl

3.3. Presiding Officer of ihe Labour Court is a judicial authority. He is. C
supposed to know the definition of 'wages' as contained in the Act. The rights
and obligations of the parties were being determined only under the Act and
not in terms of any other law. [Para 22] [884-F, G]

Gajraj Singh and Ors. v. State of U.P. and Ors., (2001) 5 SCC 762,
referred to. D

4. Bonus either in its ordinary meaning or statutory ones would not
include wages. Bonus may be deferred wage but the same must b11 construed
in a different context. When used in the context of 'backwages' and that too
50% of it, the same would not include bonus. It is expected that had the Labour E
Court intended to include the same, he would have explicitly said so. Even
now, under the Payment of Wages Act, bonus does not come within the purview
of wages. [Paras 26 and 29] [885-D, 886-A-BI

Bala Subrahmanya Rajaram v. B. C. Patil and Ors., (19581 SCR 1504,
held inapplicable. F
Muir Mills Co. Ltd. v. Suti Mills Mazdoor Union, Kanpur, [1955) 1 SCR
991, referred to.

5. The Labour Court was not determining any right under the Payment
of Bonus Act. It was while making its award determining the rights and G
liabilities under the Act. It therefore, must have in mind the provisions of the
Act alone. [Paras 32 and 331 [887-G; 888-AI

6. When an interpretation clause uses the word "includes", it is prima '
facie extensive. When it uses the word "mean and include", it will afford an H
876 SUPREME COURT REPORTS [2007] 5 S.C.R.

A exhaustive explanation to the meaning which for the purposes of the Act must
invariably be attached to the word or expression. [Para 34) [888-A, BJ

ND.P. Namboodripad (Dead) By LRs, v. Union of India (UOI) and Ors..
(2007) 4 SCALE 361, referred to.

B G. P. Singh 's Principles ofStatutory Interpretation, 10th Edition, referred
to.
)
7.1. A claim for bonus in the context of Section 22 of the Payment of
Bonus Act can be raised only by raising an industrial dispute. It cannot be

c raised by way of an execution application. If a claim had been made under an
award, the same attained finality when the amount payable thereunder had
beea calculated. Bonus was a subject matter of claim in the first application
filed under Section 6-H(l) of the Act. The amount payable thereunder had
been determined. Another application under Section 6-H(l) of the Act for the
purpose of enforcement of award, therefore, was, not maintainable.
D [Para 36] [888-E, F, G]

7.2. When the second application was filed, the same was de 'hors the ·~

award. It was an independent claim. Such an independent claim, thus, on a
plain reading of s.22 of the Payment of Bonus Act could have been raised as
an industrial dispute. When the statute provides for a remedy in a particular
E manner, the same cannot be achieved by filing an application which subserves
a different purport and object. Such an application was, thus, not maintainable
under s.6-H(l) of the Act which corresponds to s.33C(l) of the Industrial
Disputes Act. Even the jurisdiction of a Labour Court in terms of s.33C(2) of
the Industrial Disputes Act would be limited. [Paras 37 and 38)
F '{

8. The Labour Commissioner has evidently committed a manifest error
in opining that bonus is deferred 'wages' under the Act, such a view was
impermissible in law, particularly, when the appellant denied and disputed the
right of the workmen to claims. [Para 40] [889-C-D]

G CIVIL APPELLATE illRISDICTION: Civil Appeal No. 2204 of2007.

From the Final Judgment and Order dated 25.07.2006 of the High Court
of Judicature at Allahabad in Special Appeal No. 443 of 2003.

Dinesh Dwivedi and S.B. Upadhyay, Shiv Mangal Sharma and Sharmila
H Upadhyay for the Appellant.
HAMDARD (WAKF) LABORATORIES''· DEPUTY LABOUR COMMR. [S.B. SINHA, J.] 877
~ >' Bharat Sangal for the Respondents. A
The Judgment of the Court was delivered by

S.B. SINHA, .J. 1. Leave granted.

2. Relationship between the parties hereto is employer and workmen. As B
far back in the year 1983, the appellant terminated the services of 37 workmen
allegedly on the ground that they had gone on an illegal strike. It gave rise
to an industrial dispute. The management and its 19 workmen entered into
compromise. One workman died during pendency of the said dispute. Claim
of 17 workmen, therefore, survived for adjudication in the aforementioned
industrial dispute. By an award dated 26.05.1993, the industrial court, to which c
reference of the dispute was made by the appropriate government, directed:

" ... Accordingly, the Employers are directed to reinstate these 17
workers on duty on the original post and payscale within one month
after the date of publication of this Award. So far as the question of
back-wages is concerned, these workmen are to be paid 50% of their D
wages/ allowances which they were getting on 2-6-83, for the period
1-8-87 till the date of their joining the duty, within 2 months of
publication of this Award. As regards the deceased Koma! Singh, his
Provident Fund, Insurance money and wages/ allowances upto 30-9-
91 to be calculated in the same manner as was paid on 2-6-83 and 50% E
of the same is to be paid by the Employer to his wife Smt. Shakuntala.
This is my Award in this dispute."

3. The said award ultimately attained finality as the writ petition preferred
thereagainst by the appellant was dismissed by an order dated 3.11.1995. A
Special Leave Petition filed thereagainst has also been dismissed. F
4. On or about 2.08.1994, an application purported to be under Section
6-H(l) of the U.P. Industrial Disputes Act, 1947 (for short "the Act") claiming
backwages and bonus was filed wherein the total amount of claim was for a
sum of Rs. 20,70,020.44 ..
G
~-
5. The Additional Labour Commissioner, however, on an objection raised
by the appellant to the effect that the amount of bonus could not be included
in the claim application issued a recovery certificate for a sum of Rs. 17,61,755.18.
A review application, however, was filed inter alia on the premise that the
workmen were not entitled to claim any bonus. By an order dated 9 .11.1994,
H
878 SUPREME COURT REPORTS (2007] 5 S.C.R.
•'<, ,,.
A the said plea on the part of the appellant was accepted as a result whereof
the claim was reduced to Rs. 5,31,030.90. The said direction admittedly has
been complied with.

6. The workmen, however, filed another application before the Labour
Commissioner, Ghaziabad claiming bonus for the period 1987 to 1996. In its
B objection filed thereto, the appellant contended: ,._'·
"It is respectfully submitted that the present claim of Bonus for the
period 1987 to 1996 have been filed on the last date of hearing on }
04.7.96. The workmen have earlier also filed a claim u/s 6-H(l) vide
their application dtd. 02.8. 94 and also submitted list claiming Bonus,
c yearly increments, leave with wages, etc. The predecessor of the
office Sh. Arjun Ram the then Addi. Labour Commissioner heard the
parties at length and passed an order dtd. 26.9.94 amounting to Rs.
17,61,755.18. The employers/ management filed an application to review
the said order on 15.10.94. The review application was heard in presence
D of the parties and the earlier order dtd. 26.9.94, was reviewed, order
modified to the extent of Rs. 5,31,030.00. The then Addi. Labour
Commissioner rejected the claim of Bonus, yearly increments etc. :,..
since the claim of Bonus yearly increments etc. have already been
rejected by a competent authority the same can't be heard again.

E That the claim of Bonus does not fall in the definition of 'wages'" as
defined in Section 2(y) of the U.P. I.D. Act, 1947 hence the said claim
cannot be maintainable U/s 6-H(I) of the U.P. I.D. Act, 1947 and
deserves to be dismissed outrightly.

That the Hon'ble Labour Court (I), Ghaziabad who passed the Award
F in Adj. Case No. 275/87 have not given any consequential relief.
Hence the workmen are not entitled to any relief/ benefit such as
Bonus, leave etc. for the period Sep. 87 to June 95.

That on perusal of the Award, dtd. 26.5.98 made by the Hon'ble
Labour Court (I) Ghaziabad, it is specifically mentioned in the
G conclusion at page No. 12 that the workmen are only entitled to 50%
~
back wages at the rate of wages' which they were drawing on 2.6.83."

7. Rejecting the said contention, however, the Labour Commissioner,
Ghaziabad, by an order dated 8.08.1996 held:

H "After hearing the parties, I have come to the conclusion that after
HAMDARD (WAKF) LABORATORIES v. DEPUTY LABOUR COMMR [S.B. SINHA. J.) 879

the publication of the Award, the employer has made the payment of A
wages to the workmen but did not attribute them the work. Therefore,
these all workmen are completely entitled for the bonus, because
bonus is deferred wage. All workmen are entitled for the bonus at the
rate on which other workmen have been paid bonus in the organization.
Therefore, the Management shall calculate the same for the period B
from 6.11.93 till the year 94-95. The another issue is related to the
grant of bonus for the period prior to the publication of Award. In the
Award in question, the Hon'ble Labour Court has passed the order
only for payment of the 50% of the wages to the Workmen on the
issue of back wages. In this regard, the recovery order passed by the
Previous Ld. Addi. Commissioner does not include the amount of C
bonus. The Hon'ble Court has not used the wo~d "other benefits"
alongwith the Pay and allowances. B4t, in my opinion, the bonus is
deferred wages and the same is included in the Pay and salary.
Therefore, I do not agree with this pleading of the employer that the
matter shall be referred to the Labour Court for interpretation of the
Payment/ Wage under Section 11(8) of the U.P. Industrial Disputes D
Act, 194 7. Since in the Award the order for payment of 50 per cent
amount of back wages has been passed, thus, accordingly the 50%
of the bonus amount at the rate payable to other workmen of the
organization shall be payable ... "

8. A review application filed thereagainst was dismissed. A writ petition
E
was filed by the appellant before the Allahabad High Court aggrieved by and
dissatisfied therewith. A learned Judge of the said Court by an order dated
9.04.2003 held:

"Coming to the facts of the Writ Petition No. 35708of1996, the facts F
)'
being the same, claims being only for the payment of bonus for the
disputed period. Once the employer themselves have paid the wages
upto the month of June, 1996, and since this Court has also rejeded
the writ petition with regard to the payment of wages for the month
of July, 1996, needless to say for the reasons and the ground stated
in this judgment with regard to writ petition No. 41691of1996, this G
writ petition also deserves to be dismissed and is hereby qismissed."

9. An intra-Court appeal preferred thereagainst w.~s dismissed by a
Division Bench by reason of the impugned judgment boiding:

" ... The accepted translation of these two Hindi words as amongst H
880 SUPREME COURT REPORTS (2007] 5 S.C.R.

A learned counsel appearing is "wages and allowances". A submission
is made that the definition of the word "wages" in the U.P. Industrial
Disputes Act, 194 7 specifically excludes bonus. Therefore, it is argued,
the mention of wages in the award cannot include bonus and the
passing of the Labour Commissioner's order under Section 6-H(l)
including bonus is without authority as the original award cannot be
B said to have included it.

In our opinion, this argument suffers from a fallacy. The definition of
the word "wages" is meant for construing the U.P. Industrial Disputes
Act. Such definition in the Act is not meant to govern or limit the use
of the word "wages" made by any and every authority exercising
c jurisdiction under the Act or p~ssing orders under the Act. The
Labour Court's award mentioning the phrase "wages and allowance"
has to be read in its proper and normal context. The Labour
Commissioner did not in any manner misconstrue the said two words
in including bonus within the term wages and allowances. Simply put,
D whatever the other similarly situated workers got during the period
the seventeen workmen were kept out of employment, and whatever
the seventeen workmen would have got themselves had they not
been put out of employment improperly, they were to get 50% of all
that. That is the plain and simple reading of the Labour Court's award.
The order of the Labour Commissioner has proceeded on this basis.
E As such the challenge by way of the second writ petition to payment
of 50% bonus also fails."

I0. Mr. Dinesh Dwivedi, learned senior counsel appearing on behalf of
the appellant, would submit that in view of the definition of 'wages' contained
F in Section 2(y) of the Act and Section 2(21) of the Payment of Bonus Act,
in terms whereof bonus is neither wages nor allowance; the Labour ';

Commissioner committed a manifest error in directing payment thereof on the
spacious plea that it is deferred wages. It was urged that in order to interpret
a judgment, the terms used therein, in the event of any ambiguity, must be
interpreted in the light of the statute operating in the field.
G
11. Mr. Bharat Sangal, learned counsel appearing on behalf of the
respondents, on the other hand, would submit that bonus being a part of ,..
'remuneration', a claim in relation thereto can also be made under the Payment
of wages Act. It was submitted that the claim petition was not filed for
enforcement of the award but as an independent claim in terms of the provisions
H of the Payment of Bonus Act in regard whereto an application under Section
HAMDARD (WAKF) LABORATORIES v. DEPUlY LABOUR COMMR. [S.B. SINHA, J] 88 J
)i
6-H(l) of the Act before the Labour Commissioner was maintainable. Strong A
reliance in this behalf has been placed on Sanghi Jeevaraj Ghewar Chand
& Ors. v. Secretary, Madras Chillies, Grains Kirana Merchants Workers '
Union & Anr., [1969] l SCR 366 and Kohinoor Tobacco Products Pvt. Ltd.,
Adyal v. Presiding Officer, Second Labour Court, Nagpur and Ors., AIR
(1986) Born 340.
B
12. The term 'Wages' has been defined in Section 2(y) of the Act in the
\ following terms:

"2(y) 'wages' means all remuneration capable of being expressed in
terms of money, which would, ifthe terms of employment, expressed
or implied, were fulfilled, be payable to a workman in respect of his c
employment, or of work done in such employment, and includes-

(i) such allowances (including dearness allowance) as the workman
is for the time being entitled to;

(ii) the value of any house accommodation, or of supply of light, D
water, medical attendance or other amenity or of any service or of any
..; concessional supply of foodgrains or other articles;

(iii) any travelling concession;

but does not include -
E
(a) any bonus;

(b) any contribution paid or payable by the employer to any pension
fund or provident fund or for the benefit of the workman under any
)' law for the time being in force;
F
(c) any gratuity payable on the termination of his service;"

[Emphasis supplied]

13. Section 2(rr) of the Industrial Disputes Act, 194 7 defining the term
.,_ 'Wages' is in pari materia with Section 2(y) of the Act, 1947. G
14. The term "salary or wage" has been defined under Section 2(21) of
the Payment of Bonus Act as under:

"(21) "salary or wage" means all remuneration (other than remuneration
in respect of over-time work) capable of being expressed in terms of H
882 SUPREME COURT REPORTS [2007) 5 S.C.R.
\
A money, which would, ifthe terms of employment, express or implied,
were fulfilled, be payable to an employee in respect of his employment
or of work done in such employment and includes dearness allowance
(that is to say, all cash payments, by whatever name called, paid to
an employee on account of a rise in the cost of living), but does not
include-
B
(i) any other allowance which the employee is for the time being
entitled to;
j
(ii) the value of any house accommodation or of supply of light, water,
medical attendance or other amenity or of any service or of any
c concessional supply of foodgrains or other articles;

(iii) any travelling concession;

(iv) any bonus (including incentive, production and attendance bonus);

(v) any contribution paid or payable by the employer to any pension
D fund or provident fund or for the benefit of the employee under any
law for the time being in force;
~
(vi) any retrenchment compensation or any gratuity or other retirement
benefit payable to the employee or any ex gratia payment made to him;

E (vii) any commission payable to the employee.

Explanation. -Where an employee is given in lieu of the whole or part
of the salary or wage payable to him, free food allowance or free food
by his employer, such food allowance or the value of such food shall,
for the purpose of this clause, be deemed to from part of the salary
F « ~
or wage of such employee;"

15. Section 2(vi) of the Payment of Wages Act, 1936 defines "wages"
in the following terms:

"(vi) "wages" means all remuneration (whether by way of salary,
G allowances, or otherwise) expressed in terms of money or capable of
-(
being so expressed which would, ifthe terms of employment, express
or implied, were fulfilled, be payable to a person employed in respect
of his employment or of work done in such employment, and includes-

(a) any remuneration payable under any award or settlement between
H the parties or order of a Court;
HAMDARD (WAKF) LABORATORIES v. DEPUTY LABOUR COMMR. [S.8. SINHA, l] 883

(b) any remuneration to which the person employed is entitled in A
respect of overtime work or holidays or any leave period;

(c) any additional remuneration payable under the tenns of employment
(whether called a bonus or by any other name);

(d) any sum which by reason of the tennination of employment of the B
person employed is payable under any law, contract or instrument
which provides for the payment of such sum, whether with or without
deductions, but does not provide for the time within which the payment
is to be made;

(e) any sum to which the person employed is entitled under any C
scheme framed under any law for the time being in force,

but does not include-

(1) any bonus (whether under a scheme of profit sharing or otherwise)
which does not fonn part of the remuneration payable under the tenns D
of employment or which is not payable under any award or settlement
between the parties or order of a Court;
(2) the value of any house-accommodation, or of the supply of light,
water, medical attendance or other amenity or of any service excluded
from the comp4tation of wages by a general or special order of the E
State Government;

(3) any contribution paid by the employer to any pension or provident
fund, and the interest which may have accrued thereon;

(4) any travelling allowance or the value of any travelling concession;
F
(5) any sum paid to the employed person to defray special expenses
entailed on him by the nature of his employment; or

(6) any gratuity payable on the tennination of employment in cases
other than those specified in sub-clause (d)."

16. Different statutes, enacted by the Parliament from time to time,
G
although beneficial in character to the workmen, seek to achieve different
purposes. Different authorities have been prescribed for enforcing the
provisions of the respective statutes. The authority under the Payment of
Wages Act is one of them.
H
884 SUPREME COURT REPORTS (2007) 5 S.C.R.

A 17. In view of the fact that diverse authorities exercise jurisdiction which
may be overlapping to some extent, the courts while interpreting the provisions
of the statutes must interpret them in such a manner so as to give effect
thereto.

18. Section 6-H(l) of the Act provides for a proceeding which is in the
B nature of an execution proceeding. The said provision can be invoked inter
alia in the event any money is due to a workman under an award. They cannot
be invoked in a case where ordinarily an industrial dispute can be raised and
can be referred to for adjudication by the appropriate government to an
industrial court. The authorities to detennine a matter arising under Section
C 6-H(l) of the Act and an industrial dispute raised by the workmen are different.
Section 6-H(l) of the Act, it will bear repetition to state, is in the nature of
an execution provision. The authority vested with the power thereunder
cannot detennine any complicated question of law. It cannot determine a
dispute in regard to existence of a legal right. It cannot usurp the jurisdiction
of the State Government under Section 11-8 of the Act.
D
19. A Labour Commissioner is not a judicial authority. In view of Section
11-8 of the Act, it is for the State Government to construe an award, in the
event any dispute arises in giving effect thereto.

20. The Labour Court in its award directed reinstatement of 17 workmen '
E on the original post and payscale. No increment was granted; no continuity
of service was directed. What was directed was payment of 50% of the
backwages/ allowance while considering the question of backwages.

21. Definition of'wages' within the meaning of the Act does not include
"bonus". It, however, includes allowance. Payment of8onus Act also excludes
F bonus for the purpose of calculating the amount of bonus to be determined
in terms of Section 10 thereof.

22. Presiding Officer of the Labour Court is a judicial authority. He is
supposed to know the definition of 'wages' as contained in the Act. The
G rights and obligations of the parties were being determirn;d only under the
Act and not in terms of any other law.

23. An award made in favour of one party and against the other must
be clear and certain. A person keeping in view the limited relief granted in
favour of one party to the dispute may not question the correctness or
H otherwise thereof. With a view to ascertain the certainty in regard to the
HAMDARD (WAKF) LABORATORIES,._ DEPUlY LABOUR COMMR [S.B. SINHA, J] 885

meaning of the words used by a competent court of law and that too by an A
experienced judicial officer, they must be given the same meaning which are
given in a statute.

24. A judgment, it is trite, must be reasonable. It must be construed in
such a manner so as not to offend the provisions of any statute. It must not
be held to be contrary to any statutory provisions. B
25. In Gajraj Singh and Ors. v. State of U.P. and Ors., [2001] 5 SCC 762,
a 3-Judge Bench of this Court held:

" ... A doubt arising from reading· a judgment of the Court can be
resolved by assuming that the judgment was delivered consistently C
with the provisions of law and therefore a course or procedure in
departure from or not in conformity with statutory provisions cannot
be said to have been intended or laid down by the Court unless it has
been so stated specifically."

26. Bonus either in its ordinary meaning or statutory ones would not D
include wages.
"
27. What is a 'bonus' within the meaning of a provision before the
coming into force of Payment of Bonus Act, 1965 came up for consideration·
before this Court on various occasions. Although reference thereto may not E
be strictly necessary, as the learned counsel appearing fpr the parties have
referred to the same, we may take notice thereof.

28. In Muir Mills Co. Ltd v. Suti Mills Mazdoor Union, Kanpur, [1955]
1 SCR 991, this Court held:

"It is therefore clear that the claim for bonus can be made by the F
employees only if as a result of the joint contribution of capital and
labour the industrial concern has earned profits. If in any particular
year the working of the industrial concern has resulted in loss there
is no basis nor justification for a de~and for bonus. Bonus is not a
deferred wage. Because if it were so it would necessarily rank for G
,.. precedence before dividends. The dividends can only be paid out of
profits and unless and until profits are made no occasion or question
can also arise for distribution of any sum as bonus amongst the
employees. If the industrial concern has resulted in a trading loss,
there would be no profits of the particular year available for distribution
of dividends, much less could the employees claim the distribution of H
886 SUPREME COURT REPORTS [2007] 5 S.C.R.

A bonus during that year ... " \.--
29. Bonus may be a deferred wage but the same must be construed in
a different context. When used in the context of 'backwages' and that too
50% of it, the same would not include backwages. It is expected that had the
Labour Court intended to include the same, he would have explicitly said so.
B Even now, under the Payment of Wages Act, bonus does not come within the
purview of wages. The decision was rendered when Payment of Bonus Act
had not been enacted.

30. The question came up for consideration, yet again, in Bala
Subrahmanya Rajaram v. B.C. Patil and Ors., [1958] SCR 1504 wherein bonus
c was equated with remuneration but therein the question which arose for
consideration was the quantum of bonus and in that context the court went
into the question as to whether the same can be claimed under the provisions
of the Payment of Wages Act. When the bonus was considered to be a part
of remuneration, what was in the mind of this Court, was the definition of
D 'wages' under the Payment of Wages Act, as it existed at the relevant time.
In the factual matrix obtaining therein, this Court held that 'bonus' would
come within the purview of the term 'remuneration'. Evidently, 'bonus' would
not come within the meaning of the said term as it stands now and in view
of the controversy involved herein, particularly, in view of the fact that

-
'bonus' now stands explicitly excluded by reason of t11e Payment of Wages
E (Amendment) Act, 1957 which came into effect from 1.04.1958. This Court
therein had no occasion to consider the question with which we are beset
with.

31. In Sanghi Jeevaraj Ghewar Chand (supra), this Court took into
F a
consideration the history of the term "bonus" stating that claim in regard
to bonus can be raised under the provisions of the Industrial Disputes Act.
Having regard to Sections 22 and 39 of the Payment of Bonus Act, it was
stated:

" ... If a dispute, for instance, were to arise .as regards the quantum of
available surplus, such a dispute not being one falling under Section
G
22, Parliament had to make a provision for investigation and settlement
thereof. Though such a dispute would not be an industrial dispute as
defined by the Industrial Disputes Act or other corresponding Act in
force in a State, Section 39 by providing that the provisions of this
Act shall be in addition to and not in derogation of the Industrial
H Disputes Act or such corresponding law makes available the machinery
HAMDARD (WAKF) LABORATORIES v, DEPUTY LABOUR COMMR [S.B. SINHA, J) 887

- 'j
in that Act or the corresponding Act available for investigation and A
settlement of industrial disputes thereunder for deciding the disputes
arising under this Act. As already seen Section 22 artificially makes
two kinds of disputes therein referred to industrial disputes and having
done so applies the provisions of the Industrial Disputes Act and
other corresponding law in force for their investigation and settlement. B
But what about the remaining disputes? As the Act does not provide
any machinery for their investigation and settlement, Parliament by
enacting Section 39 has sought to apply the provisions of those Acts
for investigation and settlement of the remaining disputes, though
such disputes are not industrial disputes as defined in those Acts.
Though, the words "in force in a State" after the words "or any C
corresponding law relating to investigation and settlement of industrial
disputes" appear to qualify the words "any corresponding law" and
not t he Industrial Disputes Act, the Industrial Disputes Act is primarily
a law relating to investigation and settlement of industrial disputes
and provides machinery therefor. Therefore the distinction there made
between that Act and the other laws does not seem to be of much D
point. It is thus clear that by providing in Section 39 that the provisions
of this Act shall be in addition to and not in derogation of those Acts,,
Parliament wanted to avail of those Acts for investigation and
settlement of disputes which may arise under this Act. The distinction
between Section 22 and Section 39, therefore, is that whereas Section E
22 by fiction makes the disputes referred to therein industrial disputes
and applies the provisions of the Industrial Disputes Act and other
corresponding laws for the investigation and settlement thereof, Section
39 makes available for the rest of the disputes the machinery provided
in that Act and other corresponding laws for adjudication of disputes
arising under this Act. Therefore, there is no question of a right to F
bonus under the Industrial Disputes Act or other corresponding Acts
having been retained or saved by Section 39. Neither the Industrial
Disputes Act nor any of the other corresponding laws provides for
a right to bonus. Item 5 in Schedule 3 to the Industrial Disputes Act
deals with jurisdiction of tribunals set up under Sections 7, 7-A and G
7-B of that Act, but does not provide for any right to bonus. Such
a right is statutorily provided for the first time by this Act."

32. The Labour Court was not determining any right under the Payment
of Bonus Act. It was while making its award determining the rights and
1iabilities under the Act. H
888 SUPREME COURT REPORTS [2007) 5 S.C .R.

A 33. It, therefore, must have in mind the provisions of the Act alone. The
\
aforementioned decisions, therefore, have no application to the facts and
circumstances of the present case.

34. When an interpretation clause uses the word "includes'', it is prima
facie extensive. When it uses the word "mean and include'', it will afford an
B exhaustive explanation to the meaning which for the purposes of the Act must
invariably be attached to the word or expression. (See G. P. Singh 's Principles
of Statutory Interpretation, I0th Edition, Pages 173 and 175]
t
35. Recently, in N.D.P. Namboodripad (Dead) by LRs. v. Union ofIndia
C (UOI) and Ors., (2007) 4 SCALE 361, this Court held:
"17. If the words 'and includes'. were intended to rope in certain items
which would not be part of the meaning, but for the definition, then
Rule 62 would have specified only 'dearness pay' as the item to be
included but not 'pay'. If pay, dearness allowance and other allowances
were already included in 'emolument' with reference to its general or
D
normal meaning, as contended by appellant, there was no reason to
specifically again include 'pay' in Rule 62. Inclusion of 'pay' and
'dearness pay' and non-inclusion of 'dearness allowance or other
allowances' in the definition of'emolument' is significant. The definition
in Rule 62 is intended to clarify that only pay and dearness pay would
E be considered as 'emolument' for purposes of calculating pension. The
words 'and includes' have been used in Rule 62, as meaning 'comprises'
or 'consists of."

36. There is yet another aspect of the matter which cannot be lost sight
of. A claim for bonus in the context of Section 22 of the Payment of Bonus
F Act can be raised only by raising an industrial dispute. It cannot be raised
by way of an execution application. If a claim had been made under an award,
the same attained finality when the amount payable thereunder had been
calculated. Bonus was a subject matter of claim in the first application filed
under Section 6-H(l) of the Act. The amount payable thereunder had been
G determined. Another application under Section 6-H(l) of the Act for the
purpose of enforcement of award, therefore, was, in our opinion, not
•
maintainable.

37. When the second application was filed, the same was de'hors the
award. It was an independent claim. Such an independent claim, thus, on a
H pl_ain reading of Section 22 of the Payment of Bonus Act could have been
HAMDARD (WAKF) LABORATORIES 1·. DEPUTY LABOUR COMMR. [S.B. SINHA, J.l 889

raised as an industrial dispute in the light of the decision of this Court in A
Sanghi Jeevaraj Ghewar Chand (supra). The decision of the Full Bench of
the Bombay High Court in Kohinoor Tobacco Products Pvt. Ltd (supra), in
our opinion, to that extent is not correct. When the statute provides for a
remedy in a particular manner, the same cannot be achieved by filing an
application which subserves a different purport and object.
B
38. Such an application was, thus, not maintainable under Section 6-
H(l) of the Act which corresponds to Section 33C(l) of the Industrial Disputes
Act. Even the jurisdiction of a Labour Court in terms of Section 33C(2) of the
Industrial Disputes Act would be limited.

39. An application under Section 33C(l) of the Industrial Disputes Act, C
1947 must be for enforcement of a right. If existence of right, thus, is disputed,
the provisions may not be held to have any application.

40. The Labour Commissioner in view of the decision of this Court in
Muir Mills Co. Ltd (supra) has evidently committed a manifest error in D
opining that bonus is deferred wages. Once it is excluded from the purview
of the term 'wages' under the Act, such a view was impermissible in law,
particularly, when the appellant denied and disputed the right of the workmen
to claims. Both the learned Single Judge and the Division Bench of the High
Court also fell to the same error. The learned Judges even did not address
themselves the right questions. They, thus, misdirected themselves in law. E
41. We, therefore, are of the opinion that the impugned judgment cannot
be sustained which is set aside accordingly. The appeal is allowed. No costs.

D.G. Appeal allowed .
..,.