Implied term of employment for puja bonus can be established based on unbroken payment, payment during loss years, and sufficient duration of payment.

Judgement

WANCHOO J. : These are two connected appeals by special leave against the decision of the Labour Appellate Tribunal in an industrial matter. Appeal No. 473 is by Messrs. Ispahani Ltd. (hereinafter called the company) and appeal No. 474 is by the employees of the company represented by Ispahani Employees Union (hereinafter called the workmen). They will be disposed of by one judgment.

2. There was a dispute between the company and its workmen on a number of matters, which was referred by the Government of West Bengal to the adjudication of the Second Industrial Tribunal, by an order of December 17. 1953. There were a number of matters which had to be adjudicated upon; but of these only two now survive, namely-

1. whether the workmen are entitled to puja bonus for 1953, and

2. whether the workmen are entitled to receive from the company any benefits for the period of service rendered by them under Messrs. M. S. Ispahani Ltd.

A few facts may be set out here to give the background of this dispute. Originally, there was another company called Messrs. M.M. Ispahani Ltd. which was carrying on business in Calcutta since December 1934 before the partition of India. Shortly before the partition took place, Messrs. M. M. Ispahani Ltd. transferred their registered head office from Calcutta to Chittagong, now in Pakistan, That company thus became a Pakistani company after August 1947. It, however, continued to own properties in India and carried on some business in Calcutta on a small scale. The company was incorporated on September 15, 1947 and took over the good-will & trading rights of Messrs. M. M, Ispahani Ltd., an also purchased the stock-in-trade, properties and assets of that Company. Most of the shares of the company were, however, held by Messrs. M. M. Isphani Ltd, and the business of the company was of the same nature and was carried on in the same premises with the same telegraphic address and with the same workmen on the same remuneration. Further, the company continued to pay puja bonus at the rate of one month s wages from 1948 up to 1952, As no bonus was paid in 1953, a dispute arose between the company and the workmen, which was referred for adjudication along with other matters.

3. The Industrial Tribunal held that it had not been established that puja bonus had been paid at the uniform rate of one month s wages for a sufficiently long time and for unbroken period, and therefore rejected the claim for puja bonus for 1953. On the other question relating to whether the workmen were entitled to receive from the company any benefits for the period of service rendered by them under Messrs, M. M. Ispahani Ltd. it held that the workmen were entitled to take into account the service rendered by them under Messrs. M. M. Ispahani Ltd, in the matter of benefits due under the law during their service under the company.

4. This award led to two appeals one by the company on the question of benefits arising from the service rendered under Messrs. M. M. Ispahani Ltd., and the other by the workmen with respect to puja bonus for the year 1953. The Labour Appellate Tribunal allowed both the appeals. It held on the question of bonus that it had been proved that puja bonus had become a term of employment and the workmen were therefore entitled to bonus at the rate of one month s wages for the year 1953, As to the benefits arising out of the service rendered by the workmen under Messrs. M. M. Ispahani Ltd., it held that there was termination of employment of the workmen when Messrs. M. M. Ispahani migrated to Pakistan and the employment of the workmen by the company was fresh employment and they therefore were not entitled to any benefits arising out of their employment under Messrs. M. M. Ispahani Ltd . Both the company and workmen applied for special leave to appeal to this Court against the decision of the Appellate Tribunal in so far as it was against them. The applications were granted; and that is how the matter has come up before us