High Court Stay on Bonus Ceilings: Does It Affect Delhi Too?

There is a stay by the High Court (Kerala) on the payment of Bonus as per revised ceilings. Is this stay applicable in other states, for example, Delhi?

Stay is only for the petitioner and not for the entire employers of Kerala.

If you want to be exempt temporarily, apply for a stay in a court in your region.

I am very sorry to differ from the above opinion in view of Article 226(2) of the Constitution of India. The applicability of an order passed by any High Court while questioning the constitutional validity of a Central Legislation, whether the order is interim or final, shall prevail throughout the territory of India.

So far, interim stay has been granted on the retrospective implementation of the Amendment Act by the High Courts of Karnataka, Kerala, and Madras.

Dear All,

Please find attached a copy of the latest Kerala High Court Judgment wherein the applicability of the amendment on Bonus with respect to Minimum wages has been stayed. Incidentally, as per the Supreme Court, the judgment of the Kerala High Court will be applicable throughout India (copy attached).

Regards,
N. Nataraajhan
Sakthi Management Services
(Hp: +919483517402; e-mail: natraj@sakthimanagement.com)