| Case ID |
383b7d56-9eb9-47f3-99c4-b1904242fb1a |
| Body |
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| Case Number |
Civil Appeal No. 95 of 1960 |
| Decision Date |
Jun 08, 1961 |
| Hearing Date |
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| Decision |
The appeal by Gul Ahmad Textile Mill Ltd. was allowed, and the award of the Industrial Tribunal regarding the payment of bonus to workers was quashed. The Supreme Court found that the Tribunal had erred in calculating the bonus without considering the necessary deductions for depreciation and shareholder entitlements. The Court established that, after accounting for all reasonable expenses and statutory requirements, there were no available profits left to distribute as bonuses. Therefore, the Tribunal's decision was fundamentally flawed, leading to the conclusion that the workers were not entitled to the bonus claimed. The Court emphasized the importance of accurate financial calculations in determining bonus distributions, ultimately ensuring that the rights of both workers and shareholders are protected in such disputes. |
| Summary |
This case revolves around the industrial dispute regarding the payment of bonuses to the workers of Gul Ahmad Textile Mill Ltd. The Supreme Court of Pakistan adjudicated on the appeal against the decision of the Industrial Tribunal, which had awarded a bonus to the workers despite the company reporting significant financial losses. The Tribunal's decision was primarily based on perceived profits without adequately accounting for necessary deductions for depreciation and shareholder entitlements. The Supreme Court highlighted the critical need for accurate financial assessments in determining profit distribution and found that the Tribunal's award was vitiated by a clear error. This case underscores the importance of balancing employee benefits with the financial health of the company, ensuring that both workers' rights and shareholders' interests are duly considered in industrial relations. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Gul Ahmad Textile Mill Ltd.,
Trade Union of its workers
|
| Judges |
A. R. CORNELIUS, C.J.,
S. A. RAHMAN,
FAZLE AKBAR,
B. Z. KAIKAUS,
HAMOODUR RAHMAN, JJ
|
| Lawyers |
Sharif-ud-Din Pirzada, Senior Advocate Supreme Court,
Muhammad Akram, Advocate Supreme Court,
Muhammad Hanif, Attorney for Appellant
|
| Petitioners |
MESSRS GUL AHMAD TEXTILE MILL LTD., KARACHI
|
| Respondents |
PAKISTAN THROUGH THE SECRETARY, MINISTRY OF HEALTH, LABOUR AND SOCIAL WELFARE, KARACHI AND 2 others
|
| Citations |
1973 SLD 128,
1973 SCMR 348
|
| Other Citations |
Not available
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| Laws Involved |
Not available
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| Sections |
Not available
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