TaxTMI 
TaxTMI 
2003 (12) TMI 625
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....he Apex Bank (also described as 'State Bank') i.e. The Haryana State Cooperative Land Development Bank Limited. The Apex Bank is governed by the Haryana Cooperative Society Act, 1984 (in short the 'Act'). The appellant transacts its business mainly through Primary Banks which are its members. The members of the Apex Bank belonging to the area of operation of the particular Primary Bank automatically become members of the concerned Primary Bank from the date of registration. Staff of the Primary Banks except class IV employees are drawn from the Apex Bank out of the cadre maintained by it in terms of clause 70 of the model by- laws applicable to the Primary Banks. The respondent no.1-union raised a demand stating that it is e....
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....e High Court erroneously held that Rule 21 has overriding effect vis-vis the aforesaid provision. It was further submitted that merely because the members of the staff were drawn from the Apex State Bank, it does not mean that they continued to be the employees of the State Bank. On the contrary, they are employees of the Primary Bank with different service conditions. It was further submitted that if really allocable surplus was to be taken as a whole including the financial results of both the Apex Bank and the primary Banks for payment at par with that of the employees of the Apex Bank, then there has to be aggregation of the profits of the Primary Banks which are running at loss with that of the Apex Bank. Unless that is done there was ....
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....as part of the establishment for the purpose of computation of Bonus. 10. Payment of Minimum Bonus Subject to the other provisions of this Act, every employer shall be bound to pay to every employee in respect of the accounting year commencing on any day in the year 1979 and in respect of every subsequent accounting year a minimum bonus which shall be 8.33 per cent of the salary or wage earned by the employee during the accounting year or one hundred rupees, whichever is higher, whether or not the employee has any allocable surplus in the accounting year. Provided that where an employee has not completed fifteen years of age at the beginning of the accounting year the provisions of this Section shall have effect in relation to such em....
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....t to the provisions of Section 31A and 34, the provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in the terms of any award, agreement, settlement, or contract of service." Third proviso to Section 3 makes it clear that where for any accounting year, a separate Balance Sheet and Profit and Loss account are prepared and maintained in respect of any department or undertaking or branch, such department or undertaking or branch shall be treated as a separate establishment for the purpose of computation of bonus under the Act for that year, unless for the previous period such department or undertaking or branch was treated as a part of the establis....
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....tan Life Assurance Co. (1897 AC 647)(HL). Normally, a proviso does not travel beyond the provision to which it is a proviso. It carves out an exception to the main provision to which it has been enacted as a proviso and to no other. (See A.N. Sehgal and Ors. v. Raje Ram Sheoram and Ors. (AIR 1991 SC 1406), Tribhovandas Haribhai Tamboli v. Gujarat Revenue Tribunal and Ors. (AIR 1991 SC 1538) and Kerala State Housing Board and Ors. v. Ramapriya Hotels (P)Ltd. and Ors. (1994 (5) SCC 672). "This word (proviso) hath divers operations. Sometime it worketh a qualification or limitation; sometime a condition; and sometime a covenant" (Coke upon Littleton 18th Edition, 146) "If in a deed an earlier clause is followed by a later clause which destr....
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....oss profit is determined in terms of Section 4 of the Act. In case of non-banking companies, it is calculated in the manner prescribed in the Second Schedule while in case of banking company it is calculated in the manner specified in the First Schedule. The payment of minimum bonus is provided in Section 10 of the Act and is fixed at 8.33 percentage of the salary or wages earned by the employee. The entitlement of higher bonus comes in case the allocable surplus permits payment of higher bonus in terms of the applicable formula. A reading of the impugned judgment shows that the High Court was of the view that Rule 21 had overriding effect vis-vis Section 34, by referring to Section 34-A of the Act. The view is clearly untenable. Rule 21 wa....