Judgment

WANCHOO, J. : This is an appeal by special leave from the award of the Industrial Tribunal Ernakulam. A dispute arose between the appellant and its workmen as to payment for bonus for the years 1957-58 and 1958-59, and was referred for adjudication to the tribunal. The respondents claimed bonus on two grounds : (i) on the basis of profits earned by the appellant, and (ii) on the basis that payment of some bonus at Christmas had become an implied condition of service between the appellant and its workmen. It may be mentioned that the claim was for four months wages for each year on the basis of profit bonus. The alternative claim was for 1 1/2 months wages for each year on the basis of an implied term of service. We may also mention that the appellant had paid two months basic salary as bonus for the year 1957-58, and one Month s basic salary as bonus for the year 1958-59. The appellant contended that there was no surplus available on the basis of the Full Bench formula applied in such cases and therefore no profit bonus could be paid. It also contended that no bonus was payable as an implied term of service.

2. The tribunal found on an application of the Full Bench formul