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Appeal No. KAR‑76 of 1976, heard on 12th November 1976.

(a) West Pakistan Industrial and Commercial Employment (Standing Orders) Ordi nance (VI of 1968)‑

‑‑ S. O. 10(c)‑Bonus‑Worker has to claim bonus within 3 months of closing of year‑Bonus not paid within 3 months and worker taking no steps for its recovery within prescribed time but claiming it more than a year after arising of cause of action‑Labour Court, held, justified in holding claim as barred by time.

(b) West Pakistan Industrial and Commercial Employment (Standing Orders) Ordi nance (VI of 1968)‑

‑‑ S. O. 10(c)--‑Bonus‑Not payable on allowances but payable on basic salary only ‑ Custom, usage, or settlement being of course excepted.

---S. 25‑A‑Grievance notice ‑ Staff Union filing case long after transfer of worker‑‑Worker being no longer a member of Union, case, held, not maintainable.

M. L. Shahani for Appellant.

A. Hafiz for Respondent.

Date of hearing: 12th November 1976.

This is an appeal against the order of the Labour Court dismissing the application which was filed by the appellant under section 25‑A, Industrial Relations Ordinance.

2. The appellant was in the permanent employment of the Pakistan Industrial Development Corporation which is the respondent in the present case. He was permanently transferred to the State Patrolium Refinery and Petro‑chemical Corporation Ltd., on 8th March, 1974. The claim of the appellant was that he was entitled to the following benefits:‑

(i) Annual bonus for the year 1973‑74 in terms of custom, usage, terms and conditions of service as well as settlements calculated @ 10 % gross salary as payable on 7‑3‑1974.

(ii) Arrears of annual bonus in terms of custom, usage, terms and conditions of service as well as settlements calculated at the rate of 10 % of gross annual salary for the years 1968‑69, 1969‑70, 1970‑71, 1971‑72,1972‑73 and @, one month's gross salary for the years 1963‑64, 1964‑65, 1965‑66, 1966‑67 and 1967‑68. The above payments were made on the basis of basic salary instead of gross salary.

(iii) That the applicant was made partial payment in July, 1975, in respect of bonus for the year 1973‑74 ended in June, 1974. The payment was equal to 10 % of total basic salary for 1973‑74 as on 28‑2‑1974.

3. The appellant was, however, paid annual bonus for the year 1973‑74 on the basis of basic salary instead of gross salary as claimed in aforesaid Item No. (1i). The bonus was paid in July, 1975. Nothing was paid towards the amount claimed under Items No, (i) and (ii). Consequently, the appellant served a grievance notice dated 19th August, 1975 upon the res pondent. Since the claim was not accepted an application under section 25‑A, I. R. O. was filed in the Labour Court on 16th September, 1975.

4. The application was resisted and it was pleaded that the appellant was no longer in the service of the respondent and, therefore, he was not entitled to maintain the application which was made by him. It is also stated that the claim was time‑barred. ‑

5. The learned Presiding Officer accepted the plea of the respondent that the bonus was payable within 3 months of the closing of the year and since the bonus for the year 1973‑74 was not paid within this period, cause of action accrued to the appellant on 1st October, 1974 but the applicant served a grievance notice on 19th August, 1975 and, therefore, it was hopelessly time‑barred. So the application was dismissed. Aggrieved by this, the present appeal had been filed.

6. It has been conceded on behalf of the appellant that the claim in Item No. (iii) is time‑barred and, therefore, no such relief can be granted. He confined his pleas with regard to Items Nos. (i) and (ii).

7. Dealing with Item No. (i) the bonus is claimed on the basis of the provision contained fn Standing Order 10 (c) which lays down that the employer making the profit in any year shall pay bonus for that year within 3 months of the closing of that year. It is an admitted position that the year 1973‑74 ended on 30th June, 1974. Thus the bonus was payable within 3 months. Since it was not paid the appellant should have taken the steps within the statutory period, but he slept on the matter and took no action. It was for the first time on 19th August, 1975, i. e. more than a year after the cause of the action that he served the grievance notice. Consequently, the Labour Court was fully justified in holding that the claim was time barred and could not be entertained.

8. So far the claim with regard to Item No. (ii) is concerned, it has been pleaded on behalf of the appellant that the bonus was paid on the, basic salary, although it was payable on gross salary which included the allowances. I am unable to accept this contention. No law has been pointed out that the bonus was payable on the allowances as well. According to me, trio bonus is payable on the basic salary only, unless there is anvil custom, usage or settlement but no such custom, usage or settlement has been pleaded. It has not been pretended that in the previous years the bonus was paid on the gross salary which included the various allowances. Reliance, was, however, placed upon the decision of the Third Sind Labour Court discharged in a case filed by the P. I. D. C. Staff Union where the appellant was previously serving. I am unable to approve of the view taken by the Labour Court. Secondly, the decision is challenged in the High Court and the matter is still pending. Thirdly, the Staff Union filed that case long after the transfer of the appellant and, therefore, he was no longer a member C of the Union. He was tran3fcred in March, 1974 whereas the case of the Union was filed by them in January, 1975.

9. In result the appeal is dismissed.

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