Judgement

K. N. WANCHOO J. This is an appeal by special leave against the award of the Industrial Tribunal, Bombay, in a dispute between the Tata Oil Mills Co. Ltd., Bombay (hereinafter referred to as the company) and its workmen, in the matter of profit bonus for the year 1955-58: The dispute arose over a demand made by the workmen for payment unconditionally as bonus for the year 1955-56 of a sum equivalent to four months wages/salary for all employees drawing wages/salary of less than Rs. 500/ per mensem. This dispute was referred to the Industrial Tribunal by the Government of Bombay by order of dated 18-6-1957. The company already paid 2 1/2 months basic wages as bonus to its workmen and the real dispute was thus only about the remaining bonus for a month and half.

2. The case of the workmen was that the company had made record profit during the year and declared a dividend of 12 per centum free of income-tax, the workmen were getting much less than the living wage and the dearness allowance was not sufficient to fill the gap and, therefore profit bonus at the rate of four months basic wages should be granted. The company, on the other hand, contented that it was paying graded