Chennai: Holding that Sathyabama Deemed University is a profit making institution the State Industrial Dispute Tribunal, Chennai, has directed its management to pay bonus to the drivers and technicians employed in the institution as per provisions of Industrial Dispute Act 1947. Passing an award on a petition filed by Pudhiya Jananayaga Vagana Ottunargal Matturm Techniciangal Union, Kodambakkam, the presiding officer of the Tribunal A. Kanthakumar, said the legislation has to keep pace with the march of times. The provisions of the Act have to be interpreted in the light of the modern social realities.
In the petition, the Union submitted that its members worked continuously for several years at the University. The management operates several buses to transport the students, teaching and non-teaching staffs every day in the morning and drop them back in the evening. The counsel for the Union, Balan Haridas and R Kamatchi Sundaresan, said the Institution collects transport fees from them and the transport department generates a profit every year. As the varsity functions on a commercial basis, it has to pay them bonuses of 20% for 2012-2013 as per Motor Transport Employees Act 1961.
In its reply, the management contended it is not a profit making institution, staff were paid wages more than the wages fixed by the state government. The Payment of Bonus Act 1965 applies only to factory and other establishments in which 20 or more persons employed. The Act exempts Universities and educational institutions from the provisions of the Act. The transport facility provided only to those who prefer it for convenience.
The judge said considering the doctrine of casus omissus unless the universities established not for profit, the exemption would not automatically apply. When the Act came into force imparting education was considered as a noble profession and there were no private engineering colleges. Therefore, it was exempted from payment of bonus. Following the various verdict of Supreme Court imparting education considered as an occupation and it was also made permissible for the University to make profits. The judge directed the management to provide bonus to members of the union.
