JUDGMENT

BHAGWATI, J. :—This appeal by special leave is directed against an award made by the Industrial Tribunal, Calcutta in a reference between the National and Grindlays Bank Ltd. (hereinafter referred to as the Bank) and its workmen represented by the All India National and Grindlays Bank Employees Federation. The Bank is a banking company within the meaning of Section 5 of the Banking Companies Act, 1949 and has its Head Office in London and branch office in different parts of the world, including India. The principal office of the Bank in India is situate in Calcutta. The Bank maintains its accounts according to the calendar year and it brings out not only a consolidated balance sheet and profit and loss account for its world business, but also a separate balance sheet and profit and loss account for its Indian business. There was an industrial dispute between the Bank and its workmen in regard to bonus for the years 1956 to 1964 and as a result of negotiations, this industrial dispute was settled between the parties on an ad hoc basis under a Memorandum of Settlement dated 28th December, 1965. The material terms of the settlement were :

"1. The Bank will pay and the workmen