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Application No. KAR‑219 of 1983, heard on 15th May, 1985.
‑‑‑S. 50‑Interpretation of Settlement‑Intention of framers to be seen‑Settlement clause providing payment of "Bonus calculated on basis of consolidated salary inclusive of Cost of Living Allowance --Plea that consolidated salary was inclusive of not only Basic pay plus Cost of Living Allowance but also allowances paid monthly -Term "consolidated salary" in circumstances, interpreted to mean that present Cost of Living Allowances plus basic pay.
Abdul Majeed for Applicants.
S. Qamar‑ud‑Din Hassan for Respondents.
Date of hearing : 15th May, 1985.
This is an application under section 50 of the Industrial Relations Ordinance, 1969, for interpretation regarding the memorandum of settlement at Exh. A, clause (3). The application was argued by Mr. Abdul Majeed on behalf of the applicants and Mr. S. Qamar‑ud‑Din Hassan, Advocate, on behalf of the respondents. The clause (3) of the memorandum of settlement is as under :‑
"3. Annual Profit Bonus.‑All permanent workmen will, in addition to their normal salaries receive annually out of the profits of the company at the close of each financial year, a Bonus equal to 41 (four and three quarter) months consolidated salary which will be paid taking into calculation the present Cost of Living Allowance. The bonus will be inclusive of Statutory Bonus as provided under Standing Order 10‑C of the West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance, 19.68. Those permanent workmen with less than 12 months service will receive a bonus pro rata to their length of service. Permanent workmen having the company's service prior to the normal bonus payment time shall be entitled to payment of their bonus on pro rata basis.
The payment of bonus will be made as soon as possible after the finalization of the Annual Audit but will not be later than 15th August."
2. The contention of Mr. Abdul Majeed, the learned representative of the applicants is that the consolidated salaries means consolidated wages and consolidated wages do not mean only the basic wages or inclusive of only the amounts of Living Allowances on and after 1st May, 1977, but it includes all the following components of wages, namely '‑‑
(i) House Rent Allowance,
(ii) Family Medical Allowance,
(iii) Traveling Inconvenience Allowance,
(iv) Conveyance/Transport Allowance, and
(v) Good Attendance Allowance.
3. Since these allowances are paid monthly and are included in the monthly regular wages and the same form part of and are always classed and reckoned as part of wages and hence the workers have acquired lawful entitlement for the payment of bonus equal to 41 months consolidated wages but at present it is reckoned on the basis of basic salary plus the amounts of Special Dearness Allowance only.
4. On the other hand, Mr. Qamar‑ud‑Din Hassan maintains that consolidated salary only includes the Cost of Living Allowance. The intention of the framers of the memorandum of settlement Exh. A was that the consolidated salary meant, the inclusion of the Cost of Living Allowance.
5. The principal of interpretation and the meaning enunciated in the Strout's definition of salary was seen by me, P L D 1967 S C 513 was also perused.
6. The rules of constructions and the interpretation of the documents are to be seen. The intention of the framers of the memorandum at clause (3) is to be seen. In my view the intention is that consolidated salary as meant in para, 3 of the memorandum is the basic salary plus Cost of Living Allowance. The very text of para. 3 suggests and indicates clearly the intention. The words "a bonus equal to 41 months consolidated salary" which will be paid taking into consideration the present Cost of Living Allowance. The intention was that the present Cost of Living Allowance will be added to the basic salary which makes the salary a consolidated salary. The meaning is spelt out from the working of para. 3 of the memorandum of settlement.
7. It does not include the other wages as enunciated by the applicants. With this interpretation I dispose of the application under section 50, LR.O., 1969.
A. E.
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