INDIAN OXYGEN LTD. versus STATE OF BIHAR & ORS.

Citation: [1990] 1 S.C.R. 402 · Decided: 16-02-1990 · Supreme Court of India · Bench: K. JAGANNATHA SHETTY · Disposal: Appeal(s) allowed

Judgment (excerpt)

A 
INDIAN OXYGEN LTD. 
v. 
STATE OF BJHAR & ORS. 
FEBRUARY. 16, 1990 
B 
(K. JAGANNATHA SHETTY AND KULDJP SINGH, JJ.] 
Bihar Industrial Establishments (National and Festival Holidays 
\,,
and Casual Leave) Act, 1977/ Bihar Industrial Establishments and Fes-
tival Holidays and Casual Leave Rules, 1979: Section 3 and 13/Rule 
3-National and Festival holidays-Whether International Labour Day 
(1st May) should be a paid holiday in addition to holidays allowed 
C under settlement between employees and management. 
The appellant-a Public Limited Company had two establish· 
ments in the State of Bihar. The holidays available to the employees of 
the appellant-company were provided by the settlement dated 14th 
D 
March, 1971. The settlement provided for a total number of 18 holidays 
for office staff and 14 holidays for the factory staff. 
E 
F 
G 
There was a dispute between the management and the employees 
as to whether the International Labour Day (lst May) which was 
declared as a mandatory holiday under the Bihar Industrial Establish· 
ments (National and Festival Holidays and Casual Leave) Act, 1977 
should be a paid holiday in addition to the existing holidays. While the 
management wanted to declare lst May as holiday by adjusting the 
holidays allowed in the settlement, employees wanted it to be given as 
an additional holiday. Negotiations having failed and the conciliation 
officer being unable to bring about settlement, the statutory authorities 
directed the company to declare lst May as holiday in addition to the 
holidays provided for in the sdtlement. The appellant-company filed a 
Writ Petition before the High Court, challenging the direction of the 
authorities. Dismissing the Writ Petition, the High Court held that the 
holiday on Isl May prescribed under the Act being compulsory in 
nature, must be in addition to the privileges already granted to the 
workmen under the agreement. Hence the appeal by the Company. 
Allowing the appeal, by special leave, this Court. 
HELD: Section 3 'of lite Bihar Industrial Establishments 
(l'loational and Festival Holidays and Casual Leave) Act, 1977 provides 
H 
for three· iliational holidays, one International Labour Day and four 
402 
4. 
) 
INDIAN OXYGEN LTD. ,. BIHAR 
403 
festival holidays. It thus statutorily fixes eight paid holidays; for out of' 
A 
them are left to the choice of the management and employees for festival 
occasions. These eight holidays, however, are not in addition to the 
holidays that are mutually agreed upon in the settlement. They are the 
minimum holidays which the employees are entitled to. If the employees 
are entitled to more than eight holidays under any contract or usage 
applicable to the said establishment, or under any other law for the time 
being in force, those rights and privileges are saved by Section 13. This 
is the requirement of the statute. I 407B-D l 
In the present case, the festival holidays have not been identified 
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or specified in the settlement. They have to be selected and declared as 
holidays with notice to employees every year. It is only three Natioal c 
holidays that have been specified therein in addition to Vishwakarma · 
Puja day for the factory staff and factory general staff. Now, the statute 
prescribes the same three National holidays, besides International 
Labour Day and four festival holidays. But these 8 holidays are not to 
the .exclusion of or in addition to the total number of holidays agreed 
upon um!er the settlement. The total number of 14 holidays under the 
D 
settlement as again~! 8 holidays under the statute remains undisturbed 
by section 13 of tile Act since it Ii 11111re favourable to the employees than 
the rights and privileges conferred by the Act. That being the position, 
the management would be entitled to adjust the International Labour 
Day as a paid holiday within the fourteen days allowed under the settle-
ment. The demand of the employees that it should he in addition to 
fourteen days has no support either under the settlement or by the 
terminology of the statute. I 468E-H; 469A] 
Tata Oil Mj//s Co. v. K. V. Gopa/an & Ors., (1966] 3 SCR 760, 
referred to. 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1130 
of 1990. 
From the Judgment and Order dated 19.6.1989 of the Patna High 
Court in L.P.A. No. 5 l of 1987. 
G.B. Pai, S.K. Patri and J.R. Das for the Appellant. 
Dr. S.K. Ghose, Mrs. M. Qammaruddin and M. Qammaruddin 
(NP) ior the Respondents. 
The Judgment of the Co

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