Supreme Court of India

Binny Ltd. v. Their Workmen

Neutral citation
Bench C. A. Vaidialingam, I. D. Dua and G. K. Mitter JJ.
Decided 15 February 1972

INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.

What the Court ordered

To conclude the Award of the Industrial Tribunal in A.I.D. No. 6 of 1966 is set aside and Civil Appeal No. 1291 of 1967 is allowed. There will be no order as to costs. The Award of the Industrial Tribunal in A.I.D. No. 8 of 1966 is modified to the following extent: For the year 1962 the appellant will be liable to pay as additional bonus only a sum of Rs. 140145 instead of a sum of Rs. 398153 as directed by the Tribunal in the Award. To this extent Civil Appeal No. 1292 of 1967 is allowed in part. In other respects, it is dismissed. There will be no order as to costs.

Judgment, p. 484 F-H

In brief

The appellant mill had for decades unilaterally paid bonus twice a year, in August for the half-year ending 30 June and in March/April for the half-year ending 31 December, the amount varying with the profits earned; the Tribunal found this was profit bonus, not a condition of service and unconnected with any custom or festival. After the Payment of Bonus Act, 1965 came into force, the company circulated that no bonus could be quantified until the accounting year (the calendar year) closed and instead paid one month's basic wages for the half-year ending June 1965 as an advance against wages, adjustable against bonus for 1965.…

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