Devinder Kumar & Ors vs State Of Himachal Pradesh & Anr on 25 April, 2026
the payment of bonus. The law was challenged by the employees. In
that case, there was a judgment of the Calcutta High Court which had
given effect to the right of the employees to an annual cash bonus
under an industrial settlement, by the issuance of a writ of mandamus.
The mandamus bound the parties to the dispute. It was in this backdrop
that the Constitution Bench observed that the effect of the mandamus
of
issued by the High Court could not simply be nullified by enacting a law
overriding the industrial settlement. This Court held: (Madan Mohan
Pathak case, SCC p. 67, para 9)
"9. ....Here, the judgment All India Insurance Employees' Assn.
rt
v. Union of India, 1976 SCC OnLine Cal 108 given by the
Calcutta High Court, which is relied upon by the petitioners, is
not a mere declaratory judgment holding an impost or tax to be
invalid, so that a validation statute can remove the defect pointed
out by the judgment amending the law with retrospective effect
and validate such impost or tax. But it is a judgment giving effect
to the right of the petitioners to annual cash bonus under the
Settlement by issuing a writ of mandamus directing the Life
Insurance Corporation to pay the amount of such bonus. If by
reason of retrospective alteration of the factual or legal situation,
the judgment is rendered erroneous, the remedy may be by way
of appeal or review, but so long as the judgment stands, it cannot
be disregarded or ignored and it must be obeyed by the Life
Insurance Corporation. We are, therefore, of the view that, in any
event, irrespective of whether the impugned Act is
constitutionally valid or not, the Life Insurance Corporation is
bound to obey the writ of mandamus issued by the Calcutta High
Court and to pay annual cash bonus for the year 1-4-1975 to 31-
3-1976 to Class III and Class IV employees.'