Judgment

BHARGAVA, J.: This appeal by special leave is directed against an Award of the Industrial Tribunal, Madras, in a dispute relating to payment of bonus under the Payment of Bonus Act, 1965 (No. 21 of 1965) thereinafter referred to as "the Act"). The respondent in the appeal is the employer, William Jacks & Co. Ltd., Madras, while the appellant is the William Jacks & Co. Employees Union, Madras representing the workmen employed by the respondent. The appellant claimed that for the two calendar years 1964 and 1965, the workmen were entitled to bonus at the maximum rate of 20 per cent of their annual wages while the respondent Co. put forward the case that there was no available surplus and, consequently, the liability to pay bonus for these two years could not exceed the minimum of 4 per cent of the wages. It may be mentioned that the respondent Co. is a Branch of William Jacks & Co. Ltd. registered in England with Head Office in London. It appears that in India this Company has three offices. One is in Calcutta which also functions as the Regional Head Office for all the three Branches in India. The other two Branches are in Bombay and in Madras, the latter being the branch t