Judgment V. K. SINGHAL, J. ( 1 ) THE petitioner has challenged the award of the Industrial Tribunal Kota dated April 2. 1992 on the ground that the directions for giving the bouns for 20% was noi in accordance with the provisions of law. The petitioner has already made the payment of 8 33% bonus in the past and therefore the directions were given to make the payment of 11. 67% bouns alongwith intrest at the rate of 9% p. a. for 1983-84. ( 2 ) THE petitioner. Kota Central Co-operative Bank Ltd. . Kota earned net profit of Rs. 5,29,685,11 in accordance of balance-sheet on 1983-84 for the year eneing of June 30, 1984. It was found that after adding certain sums in accordance with the Bouns Act, 1965, the figure of gross profit comes to Rs. 97,93,835,11 and after reducing the balaace, the figure come to rs. 7. 97,999,42 and the bouns of Rs. 5,43. 589,33 should have been distributed. Still a sum of Rs 1. 59. 013. 30 remains with the Bank. In the present writ petition the dispute is for adding the figure of interest which according to the respondent Bank should not have been added while according to the employees union it his to bs added. ( 3 ) THE submission of Mr. Sharma is that the Bank is maintaining the books of account according to cash system and not according to mercantile system. It is submitted that in accordance with the provisions of Rute 67 of the Rajasthan Co-operative Societies Rules, 1966 (hereinafter called as the ctj-21 rules) a society earning profits, shall calculate the net profits by deducting from the gross profits for the year, all interests accrued and accruing in account with are over due, establishment charges, interest payable on loan and deposits, audit fee, working expenses including repairs, rent, taxes and depreciations and after providing for or writing off bad debts and losses not adjusted against any fund created out of profits. A society nay however add to the net profits for the year interest accured in the preceding years, but actually recovered during the year. It is submitted that it is only the actual interest which has accrued and recovered that has to be added to the net profit of the society. A society nay however add to the net profits for the year interest accured in the preceding years, but actually recovered during the year. It is submitted that it is only the actual interest which has accrued and recovered that has to be added to the net profit of the society. ( 4 ) LEARNED Counsel submits that instructions have been issued by the registrar of the Co-operative Societies to the effect that over-due interest is not to be added to profit and loss account. Attention has been drawn towards the provisions of Section 4 of the Payment of Bouns Act, 1965 where it is provided that the gross profit derived by an employer from an establishment in respect of any accounting year shall (a) in the case of a banking company, be calculated in the manner specified in the second schedule. So far as this provision is concerned, it is admitted position between the parties that the petitioner is a banking company and therefore calculation has to be made in the manner specified in the first Schedule. The first schedule provides in item No 1 net profit as shown in the Profit and Loss Account after making usual and necessary provisions. Item No. 2 contemplates add back provision for (a) Bouns to employees (d) Depreciation (c) Development rebate Reserves and (d) any other reserves and the controversy is with regard to the word any other reserves, which according to the respondents covers the interest which has becomes over due and has not been added io the profit and loss account. ( 5 ) THE provisions of Section 2 of the Banking Regulation Act, 1949 provisions of that Act shall be in addition to and not save as expressly provided, in derogation of the Companies Act, 1956 and any other law for the time being in force. On the basis of this provision, it is submitted by the learned counsel for the respondents that the Regulations of Kota Central co-operative Bank Ltd. have provided by way of regulation 58 for distribution of income and it has been provided that at least 25% of the net profit shall be reserved in a separate account and 1% shall be put in co-operative education reserve fund and out of the balance, 25% will go to Agriculture credit Stabilisation Fund. The amount shall also be distributed to the workment in accordance with the Bouns Act and any other provisions which have been made therein for distribution thereof. ( 6 ) I have considered over the matter. From a perusal of Section 4 of the Bouns Act it is clear that calculation of gross profit shall be made in accordance with the manner specified in the first Schedule. Section 34 of the payment of Bouns Act provides that subject to the provisions of Section 31-a, the provisions of that Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in terms of any award, agreement, settlement or contract of service. This provision makes it clear that if there is any inconsistency between the payment of Bouns Act and other laws, then the provision of Payment of bouns Act shall be applicable. Section 31-A is in respect of the special provision with respect to payment of bonus linked with production or productivity. We are not concerned with that provision. The provision of the said Act in the first Schedule have to be taken into consideration in the light of the provisions contained in Section 34 of the Act. Any inconsistent provision of any other law would not have effect ia the calculation of bonus on the basis of the procedure given under the first schedule to the Act It may be observed that the Banking Regulation Act, 1949 provides the provision for application of other law and it is provided tbat the provisions of the Act shall be in addition to and not save expressly provided in derogation of (he Companies Act and any other law for the time being in force. The controvery raised by the learned counsel is whether the Bouns Act provides inclusion of over-due interest or the same cannot be added in terms of the provisions of Rule 67 of the Rajasthan Co-operative Societies Rules 1966 r/w section 2 of the Ranking Regulation Act. Learned Counsel for the respondents has also drawn my attention toward the instructions issued by the Reserve Bank of India wherein it is provided tbat overdue interest and bad and doubtful debts made out of the protits of the year may be added while computing gross profits for the limited purpose of ex-gratia payment. Learned Counsel for the respondents has also drawn my attention toward the instructions issued by the Reserve Bank of India wherein it is provided tbat overdue interest and bad and doubtful debts made out of the protits of the year may be added while computing gross profits for the limited purpose of ex-gratia payment. The decision of this coart in the case of Railway Employees Co-operative banking Society v. Industrial Tribunal, WLN (UC) 1981-480 has been relied upon, which has laid down the proposition that in case there is inconsistency in the Jaw made by the Parliament and the law made by the State Legislature then the law made by the Parliament shall prevail. It was found tbat the bonus Act being self-contained Code so far as calculation of payment of bonus is concerned, will prevail over the provisions of other Act and Rules. The provisions of Section 34 of the Payment of Bouns Act which was also taken into consideration also provides that the provisions of that Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in terms of any award. ( 7 ) THE Tribunal has proceeded on the proposition that the words any other reserves which are mentioned in the first schedule will cover the over-due interest. The decision in the case of Indian Oxygen Ltd v Their workmen (1961-1-LLJ-627) (SC) was also taken into consideration. From a perusal of the award of the Industrial Tribunal it is not known whether the petitioner has maintained the accounts according to mercantile system or according to cash system. If it is cash system then the question of adding of over-due interest would not have arisen. Such amount could have been added in mercantile system. Schedule-1 contemplates adding back certain amount. The amount of overdue interest cannot be reduced from the profit and loss account, if the at acounts are maintained in mercantile system then whatever amount it accrued as income by way of interest, it will be added so the profit of the year. The question which was adjudged by the Tribunal was whether the profit has correctly been arrived at in accordance with the formula given in the Schedule. The Tribunal has proceeded on the erroneous assumption. The question which was adjudged by the Tribunal was whether the profit has correctly been arrived at in accordance with the formula given in the Schedule. The Tribunal has proceeded on the erroneous assumption. ( 8 ) RESERVE is an amount set aside out of profits and other surplus which are not designed to meet any liability. contingency commitment or diminition in value of assets known to exist as at the date of the balance sheet (Institute of Chartered Accountants, England) ( 9 ) UNDER Schedule V1, of the Companies Act in the from of balance Sheet, Part-III, reserve has been defined as not to include any amount written off or retained by way of -providing for depreciation, renewals or diminution in value of assets or retained by way of providing for any known liability. ( 10 ) RESERVE is setting aside or allocation of profits for specific purpose and therefore other reserve will not include any amount when has not been sec aside or taken out of the profits already earned. ( 11 ) THE other reserve for which the schedule has contemplated adding back for the purpose of calculation of bonus does not include interest occrued where the books are maintained on cash basis. In these circumstances it is held that the award passed by the Tribunal is not in accordance with law. ( 12 ) THE matter is sent back to the Tribural to proceed in accordance with the directions given above, namely the liability of the bouns shall be dctermired in accordance with the provisions of Payment of Bonus Act and the amount which has been specifically provided to be added in the Schedule has to be added. ( 13 ) THE writ petition stands disposed of with the above directions. Petition disposed of with directions.