Judgement

MITTER, J.:- This appeal arises out of an award dated January 30, 1967 of the Industrial Court of Madhya Pradesh (hereinafter referred to as the "Tribunal ). The term of reference to the Tribunal was:

"Whether the employees of Jabalpur Electric Supply Company Ltd., have a case for payment of bonus for the year 1960-61 and what should be its quantum and terms of payment?"

The claim for bonus was made under two heads: the first was for bonus out of the profits quantified at 50 of the total earnings of the employees; and the second was for festival bonus at 10 of the said total earnings which was claimed as an implied term of the contract of employment and as an established practice, having been paid irrespective of profits or losses before Diwali every year continuously from 1940-41 without any break. The Tribunal found itself unable to hold in favour of the employees Union under either of the heads. The appeal to this Court is by special leave.

2. We propose to take the two heads under which bonus was claimed in the order in which the arguments were advanced before us. The first head of bonus canvassed for was the second mentioned above i.e. at 10 of the total earnings, So