VOLTAS LIMITED Vs. ITS WORKMEN

JUDGEMENT

(1.) THE following judgment of the court wasdelivered by:

(2.) THE only question raised in these two appeals byspecial leave is about the quantum of bonus to be paid tothe workmen (hereinafter called the respondents) by VoltasLimited (hereinafter called the appellant) for the financialyear 1956-57. THE dispute between the parties was referredto the adjudication of the industrial tribunal Bombay. THEappellant, it appears, had already paid 4 1/2 months' basicwages as bonus for the relevant year but the respondentsclaimed it at the rate of six months' basic wages subject tothe minimum of Rs. 250.00 per employee.THE tribunal went into the figures and after making therelevant calculations came to the conclusion that theavailable surplus worked out according to the Full-Benchformula justified the grant of bonus equal to five months'basic salary; it therefore ordered payment of this amountexcluding the amount already paid. THE appellant in itsappeal claims that the tribunal should have allowed nothingmore than what the appellant had already paid; therespondents in their appeal on the other hand claim thatthey should have been allowed six months' bonus.

(3.) THIS brings us to the objections raised on behalf of therespondents. The main objection is to a sum of Rs. 4.4 lacsallowed by the tribunal as income-tax, which is said to bewith respect to the previous year. It appears that there isa difference between the accounting year of the appellantand the financial year. In the particular year in disputethere was an increase in the rate of tax which resulted inextra payment which had to be paid in this year. In thesespecial circumstances, therefore, the tribunal allowed thisamount and we see no reason to disagree.