Retrospective Applicability of Payment of Bonus (Amendment) Act, 2015, stayed

Kerala High Court: While dealing with question relating to the retrospective applicability of Payment of Bonus (Amendment) Act, 2015, the Court stayed the retrospective operation of the Amendment Act by way of an interim order.  The Amendment Act, 2015 was introduced on 1st  January, 2016 and was made retrospectively applicable from 1st  April 2014. The retrospective applicability of the Amendment Act was challenged in the High Court of Kerala through a writ petition. The Court, by its interim order dated 27th  January, 2016 stayed the applicability of the Amendment Act to the extent it gives retrospective effect from 1st April 2014 and further specified that the Amendment Act should be implemented from 2015-16, pending disposal of the writ petition. [United Planters’ Association of Southern India vs Union of India, 2016 SCC OnLine Ker 213, decided on January 27, 2016]

Editor’s Comment: It would seem from the decision of the Supreme Court in Kusum Ingots & Alloys Ltd. v. Union of India, (2004) 6 SCC 254, that an order passed on a writ petition questioning the constitutionality of a parliamentary Act, whether interim or final keeping in view the provisions contained in clause (2) of Article 226 of the Constitution of India, will have effect throughout the territory of India subject of course to the applicability of the Act.

3 comments

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    Stay is only for FY 2104, so Can I expect bonus paid for the FY 2015-16. Because my company has not paid the bonus yet. If yes can I appeal for the bonus in court. Please advice.

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    stayed on the retrospective effect of revision in bonus is applicable in maharashta or other states

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