Case Note & Summary
The dispute arose between the Graham Trading Co. (India) Ltd. and its workmen regarding the payment of puja bonus for the year 1953. The company had been paying a puja bonus continuously from 1940 to 1952, but claimed that these payments were ex gratia and not obligatory, especially in light of losses in 1953. The workmen contended that the bonus had become customary and a term of employment to meet puja expenses. The matter was referred to the Second Industrial Tribunal, which initially dismissed the claim based on an implied term of employment but later the Labour Appellate Tribunal allowed the appeal, recognizing the customary nature of the bonus. The Supreme Court, upon reviewing the case, found that the tests for establishing a customary payment were met, including the unbroken series of payments and the uniform rate of one month's wages. The court dismissed the appeal, affirming the Labour Appellate Tribunal's decision while clarifying that the issue of profit bonus was not adequately addressed. The parties were ordered to bear their own costs.
Headnote
A) Industrial Law - Puja Bonus - Customary Payment - Payment of puja bonus established as customary and traditional - Industrial Disputes Act, 1947 - The court held that the workmen were entitled to puja bonus based on its customary nature, despite the employer's claims of ex gratia payments. The tests for establishing customary payments were satisfied, including unbroken payment over years and uniform rate (Paras 1-15).
Issue of Consideration
Whether the workmen were entitled to puja bonus as a customary payment or as an implied term of employment.
Final Decision
The Supreme Court dismissed the appeal, affirming the Labour Appellate Tribunal's decision to award one month's basic wages as puja bonus, recognizing it as a customary payment.
Law Points
- Puja bonus
- customary payment
- ex gratia payment
- implied term of employment
- industrial dispute
