JARDINE HENDERSON LTD. versus THE WORKMEN AND ANOTHER

JARDINE HENDERSON LTD. versus THE WORKMEN AND ANOTHER

Closing bonus was paid only after trading results were known and in years of profit, not during years of loss. It did not become an implied condition of service irrespective of profits, nor did it acquire the character of a customary bonus since it was not connected to any festival. The tribunal erred in applying a lower interest rate; the usual 6% should apply under the Full Bench formula.

Parties
Appellant: Jardine Henderson Ltd.; Respondent: The Workmen and Another
Jurisdiction
India
Judgment Date
05 March 1962
Procedural Posture
Civil Appeal / Appeal by Special Leave From the Award of the Third Industrial Tribunal, West Bengal
Outcome
Appeal allowed; order of the tribunal set aside.
Legal Topics
Bonus, Implied Term of Service, Customary Bonus, Profit Bonus, Full Bench Formula
Labour Law Industrial Dispute Bonus Implied Term of Service Customary Bonus Profit Bonus Full Bench Formula

Case Brief

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Parties

Jardine Henderson Ltd.

Appellant

The Workmen and Another

Respondent

Procedural Posture

Civil Appeal / Appeal by Special Leave From the Award of the Third Industrial Tribunal, West Bengal

Legal Issues

  1. 1 Whether the management was justified in reducing the quantum of closing bonus to half a month's pay for the year 1958.
  2. 2 Whether payment of closing bonus became an implied condition of service between the workmen and the appellant company.
  3. 3 Whether closing bonus has the character of a customary bonus not dependent on profits earned.

Ratio Decidendi

Closing bonus was paid only after trading results were known and in years of profit, not during years of loss. It did not become an implied condition of service irrespective of profits, nor did it acquire the character of a customary bonus since it was not connected to any festival. The tribunal erred in applying a lower interest rate; the usual 6% should apply under the Full Bench formula.

Court Disposition

Appeal allowed; order of the tribunal set aside.

Orders

  • Claim of workmen for any closing bonus over and above that paid for 1958 is rejected.
  • Each party to bear its own costs.