WORKMEN Vs. KETTLEWELL BULLEN AND COMPANY LIMITED

JUDGEMENT

(1.) This appeal by the workmen of Kettlewell Bullen and Company Ltd. (hereinafter referred to as 'the workmen') involves the question whether the workmen are entitled to Customary Bonus at the rate of 10.5 per cent of the total annual salary or wages in respect of the years 1974 to 1977.

(2.) By order dated September 11, 1979 the Government of West Bengal referred to the Eighth Industrial Tribunal (hereinafter referred to as 'the Tribunal') the following dispute for adjudication under Section 10 of the Industrial Disputes Act, 1947:

(3.) Since the appeal relates to demand for customary bonus, it is necessary to mention that customary bonus differs from the bonus (as normally understood) based on the general principle that labour and capital should share the surplus profits available after meeting prior charges. Customary bonus has also to be distinguished from bonus claimed as an implied term of the contract of employment. The circumstances in which an implied agreement may be inferred have been laid down in M/s. Ispahani Ltd. Calcutta v. Ispahani Employees' Union (1960) 1 SCR 24, 28 .