THE GRAHAM TRADING CO. (INDIA) LTD. versus ITS WORKMEN

THE GRAHAM TRADING CO. (INDIA) LTD. versus ITS WORKMEN

The workmen were not entitled to puja bonus as an implied term of employment, as the appellant had made clear that payments were ex gratia from 1948 to 1952. However, they were entitled to puja bonus on the basis that it was a customary and traditional payment, satisfying the required tests: unbroken payment, sufficiently long period, payment in years of loss, and at a uniform rate.

Parties
Appellant: The Graham Trading Co. (India) Ltd.; Respondent: Its Workmen
Jurisdiction
India
Judgment Date
07 May 1959
Procedural Posture
Civil Appeal / Appeal by Special Leave From the Judgment and Order Dated 31st January 1956 of the Labour Appellate Tribunal at Calcutta in Appeal No. Cal. 301 of 1954, Arising Out of the Award Dated 20th October 1954 of the Second Industrial Tribunal, West Bengal.
Outcome
Appeal dismissed.
Legal Topics
Bonus, Customary Bonus, Implied Terms of Employment, Puja Bonus, Ex Gratia Payments
Labour Law Industrial Disputes Bonus Customary Bonus Implied Terms of Employment Puja Bonus Ex Gratia Payments

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Parties

The Graham Trading Co. (India) Ltd.

Appellant

Its Workmen

Respondent

Procedural Posture

Civil Appeal / Appeal by Special Leave From the Judgment and Order Dated 31st January 1956 of the Labour Appellate Tribunal at Calcutta in Appeal No. Cal. 301 of 1954, Arising Out of the Award Dated 20th October 1954 of the Second Industrial Tribunal, West Bengal.

Legal Issues

  1. 1 Whether the payment of puja bonus had become a term of employment or a customary and traditional payment and if the workmen were entitled to it in 1953.

Ratio Decidendi

The workmen were not entitled to puja bonus as an implied term of employment, as the appellant had made clear that payments were ex gratia from 1948 to 1952. However, they were entitled to puja bonus on the basis that it was a customary and traditional payment, satisfying the required tests: unbroken payment, sufficiently long period, payment in years of loss, and at a uniform rate.

Court Disposition

Appeal dismissed.

Orders

  • The order of the Appellate Tribunal for payment of one month's basic wages as puja bonus is confirmed.
  • Parties to bear their own costs.