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Appeal No. KAR‑641 of 1983, decided on 22nd July, 1985.

‑‑‑S. 34‑‑West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance (VI of 1968), S.O. 10‑C‑‑Payment of bonus to employees‑‑Employees' Union producing no evidence while employers producing balance‑sheet properly audited by two Chartered Accountants and official of employers submitting himself for cross‑examination with regard to contents of affidavit presented by such official‑‑Burden of proof which lay on employers with regard to Profit and Loss Accounts for disputed period, held, was discharged‑‑Application for payment of bonus to employees was dismissed in circumstances.

S. P. Lodhi for Appellants.

Samiullah Khan for Respondents.

Date of hearing: 24th March, 1985.

The instant appeal arises against the order of IInd Sind Labour Court as Karachi, dated 10‑11‑1983. In this order, the Labour Court dismissed an application under section 34 of the Industrial Relations Ordinance, 1969.

2. The brief facts are that the appellants are the Collective Bargaining Agent in the respondents establishment. The respondents are doing the business of procurement, sale and export of cotton and had monopoly business of purchase, sale and export of cotton in Pakistan and used to earn huge profits and the said business is being carried out by the respondents without any fear and risk of losses. The appellants further stated that the respondents had not made payment of bonus under Standing Order 10‑C for the year ending 30‑6‑1982, hence the application was made by the appellants in the Labour Court.

3. The Deputy General Manager filed the reply statement on behalf of the respondents in which it is shown that in the financial year commencing from July, 1981 and ending in June, 1982, the respondents did not earn any profit and consequently, the workmen of the respondents were not entitled to the payment of any profit bonus under the provision of the Standing Orders. The respondents communicated to the appellants by their letter, dated 26‑12‑1982 that the respondents earned no profits during the financial year 1981‑82 and the question of payment of profit bonus under Standing Order 10‑C would not arise. The respondent further denied the contentions of the appellants that the respondents had made huge profits.

4. In the Labour Court, one Mr. Muhammad Sadiq Abbasi, General Secretary of the appellants filed his affidavit but he did not present himself for cross‑examination and hence his affidavit was not considered. Whereas on behalf of the respondents Zahir Hussain filed his affidavit which was duly cross‑examined by Mr. S. P. Lodhi, representative for the appellants.

5. Mr. S. P. Lodhi made submissions before the Tribunal and so also Mr. Samiullah Khan, Advocate on behalf of the respondents management. The witness Zahir Hussain produced the Balance Sheet of the respondents pertaining to the year ending on 30‑6‑1982 and the Profit & Loss Accounts for the year ending 30‑6‑1982 as Exh. 4‑A, It contains 23 pages. The Balance Sheet and Exh. 4‑A was audited by two Chartered Accountants. It appears from the Profit and Loss Accounts at page 5 of Exh. 4‑A that the respondents made no profit during the A year 1981‑82. The burden which lay on the respondents was discharged.. It is pertinent to refer the cross‑examination of the witness, Zahir Hussain on behalf of the respondents. Mr. Zahid Hussain in his cross-examination has reiterated that there were no profits during the year 1981‑82. In the year 1980‑81, the bonus was paid and it is mentioned in pare. 6 of the Balance Sheet under the sub‑head "bonus payable". The amount of Rs.8,84,981 is mentioned in para.6 of the Balance Sheet in which bonus was paid. It was not a fact that the entire amount of Rs. 8,84,981 was out standing till 30‑6‑1982. But, in the subsequent year ending or, 30‑6‑1983, the bonus under Standing Order 10‑C was paid as the Corporation made profits. It is further stated by the witness in cross‑examination that the amount of Rs.23.73,06.923 mentioned under Head No. 11 are receivable by the respondent Corporation from the Government, was not received towards the reimbursement of the Export Duty.

6. From the evidence and cross‑examination of Zahid Hussain, it is clear that the profits for the year 1981‑82 were not earned by the respondent Corporation. There is also no question of earning a huge profit in the year 1981‑82. The Balance Sheet and the Profit and Loss Accounts of the respondent Corporation are audited by the qualified Auditors.

7. Therefore, the application of the appellants union under section 34 of I.R.O. 1969, was dismissed by the Labour Court and I find no reasons to interfere with the order of the Labour Court. This appeal is accordingly dismissed.

A.A.

Appeal dismissed.

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