Working Funds - Definition - Law Dictionary Home Dictionary Definition working-funds

Definition :

Working funds, the words 'working funds', when used in relation to a banking company, are not to be construed in their ordinary popular sense by reference to a dictionary. They have a history of their own and they have acquired a definite meaning. In the Sastri Award made in 1953 in regard to industrial disputes between certain banking companies and their workmen, the words 'working funds' were defined to mean paid-up capital, reserves and the average of the deposits for 52 weeks of each year for which weekly returns of deposits are submitted to the Reserve Bank of India under the provisions of the Reserve Bank of India Act. This is the sense in which they must be deemed to have been used by the legislature when it enacted clauses (ii) and (iii) of the proviso to Item 2 of the Third Schedule, Workmen of National & Grindlays Bank Ltd. v. National & Grindlays Bank Ltd., AIR 1976 SC 611: (1976) 1 SCC 925: (1976) 3 SCR 130