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1968 Supreme(SC) 270

J.M.SHELAT, V.BHARGAVA
Management of Consolidated Coffee Estate LTD. – Appellant
Versus
Workmen – Respondent


Advocates:
For the Appellant :Ravi Abrol, Advocate vice and Abdul Hafeez, Advocate.
For the Respondents:J.P. Gandhi, Advocate.

JUDGMENT

Per Shelat, J.-This appeal, by special leave, is by the employer company against the award dated November 18, 1965 of the Special Industrial Tribunal, Bangalore, by which the Tribunal awarded bonus at the rate of 6 months basic wages for the year 1962-63 to the staff members of the company. There were in the company s employment at the relevant time staff members, artisans and daily rated labourers, but as the reference to the Tribunal was confined only to the question of bonus payable to the staff members, we are not concerned in this appeal with the artisans or the labourers.

2. The appellant-company has been paying bonus to the staff members for the last several years. The practice followed by the company was first to fix the amount of bonus which it was prepared to pay and then to negotiate with the employees as to differences, if any, between them. Bonus thus was so far not determined on the basis of the Full Bench Formula as approved by this Court in Associated Cement Companies v. Its Workmen (1959) S.C.R. 925. For the year 1960-61 the company paid bonus to staff members equal to 81/2 months basic wages. For 1961-62 the bonus paid was at the rate of 5i months basic














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