M/S. LIPTON LIMITED AND ANOTHER versus THEIR EMPLOYEES

M/S. LIPTON LIMITED AND ANOTHER versus THEIR EMPLOYEES

The Delhi Industrial Tribunal had jurisdiction as the Delhi office controlled the appointment, leave, transfer, and supervision for the relevant employees, regardless of their actual place of work. Bonus for Indian employees must be based on the surplus profits of the Indian business, not on global profits; there...

Source-derived case information.

Parties
Appellant: M/s Lipton Limited and another; Respondent: Their Employees (represented by Lipton Employees Union)
Jurisdiction
India
Judgment Date
02 February 1959
Procedural Posture
Civil Appeal / Supreme Court Judgment on Appeal by Special Leave From Labour Appellate Tribunal Decision
Outcome
Appeals Nos. 713 and 714 allowed in part; Appeal No. 715 dismissed.
Legal Topics
Bonus, Fixation of Wage Grades, Jurisdiction of Industrial Tribunal, Distinction Between Bonus and Wage
Labour Law Industrial Disputes Bonus Fixation of Wage Grades Jurisdiction of Industrial Tribunal Distinction Between Bonus and Wage

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Parties

M/s Lipton Limited and another

Appellant

Their Employees (represented by Lipton Employees Union)

Respondent

Procedural Posture

Civil Appeal / Supreme Court Judgment on Appeal by Special Leave From Labour Appellate Tribunal Decision

Legal Issues

  1. 1 Whether the Industrial Tribunal, Delhi, had jurisdiction over employees of the Delhi office employed outside Delhi State
  2. 2 Whether bonus for 1951 is payable to employees in India on the basis of global profits or only on profits arising in India
  3. 3 What is the appropriate date for giving effect to revised wage grades and scales

Ratio Decidendi

The Delhi Industrial Tribunal had jurisdiction as the Delhi office controlled the appointment, leave, transfer, and supervision for the relevant employees, regardless of their actual place of work. Bonus for Indian employees must be based on the surplus profits of the Indian business, not on global profits; there being no surplus for 1951, bonus was not payable. The Tribunal was justified in revising the wage structure on evidence of rates below the living wage and the company's capacity to pay, but retrospective effect for new scales was limited to November 1, 1955, instead of January 1, 1954.

Court Disposition

Appeals Nos. 713 and 714 allowed in part; Appeal No. 715 dismissed.

Orders

  • Order for grant of bonus for 1951 is set aside.
  • New scales of pay to take effect from November 1, 1955, not January 1, 1954.