Judgment

WANCHOO, J. : This is an appeal by special leave against the award of the Industrial Tribunal, Bombay, in a dispute between the Anil Starch Products Ltd., Ahmedabad (hereinafter referred to as the company) and its workmen, in the matter of profit bonus for the year 1953. The dispute arose over the demand made by the workmen for payment of six months wages as bonus for that year. This dispute was referred to the Industrial Tribunal by the Government of Bombay by its order dated July 15, 1955. The company had already paid one month s month s basic wages as bonus to its workmen and the real dispute was thus only about the remaining bonus for five months.

2. The case of the workmen was that the company had made substantial profits during the year. The wages-cum-dearness allowance paid by the company was low and therefore, profit bonus at the rate of six months wages should be granted to fill the gap between the wages paid and living wage. The company on the other hand contended that it was giving high wages and had already paid one month s basic wage as profit bonus and there was no scope for further payment of bonus as the available surplus, according to the Full Bench formula