Judgement

BHAGWATI J.: This appeal with special leave is directed against the judgment and order of the Labour Appellate Tribunal of India in a dispute regarding the workers claim for bonus.

2. During the year 1948 the Appellant made a profit of Rs. 11,97,648-11-9. It paid 24 3/4 per cent. dividend on, ordinary shares, being the maximum that could be paid under the Public Companies (Limitation of Dividend) Ordinance of 1948 and also paid to the workers their full share of bonus at As. 4 in a rupee of their basic earnings. During the year 1949 the selling rates for cloth and yarn were controlled by the Government and were approximately 4 per cent below those obtained in 1948. The basic wages were increased from the 1st December, 1948 by order of the Government of Uttar Pradesh and the total wages paid were therefore higher than those in the previous year. There was moreover in discipline amongst the workers and production suffered.

There was a strike in the month of October and the mills were closed for nearly a month. Further the management were unable to recum cotton which resulted in the curtailment of the working hours. As a result of all these circumstances the Appellant suffered