JUDGMENT

PATHAK, J. :— These appeals by special leave are directed against the common judgment and order of the Patna High Court dismissing two appeals filed by the Regional Director, Employees State Insurance Corporation on the question whether the respondent is liable to pay the disputed bonus to its workmen.

2. The respondent, Bata Shoe Company (P) Ltd., has a branch factory at Digha Ghat and another at Mokamah in the State of Bihar. At the Digha Ghat branch, the respondent entered into a settlement with its workmen on May 6, 1947, in which it was agreed that production bonus payable to the workmen would remain unaltered but employees earning less than Rs.. 200/- would get an extra bonus called "good attendance bonus" at 5% of their yearly salary provided they completed active service for 265 days annually inclusive of Saturdays. It was stipulated that attendance bonus would be calculated in the same way as production bonus. On November 28, 1951 there was an agreement by which it was agreed that "the system of attendance bonus for the year 1952 will be discontinued and the ex gratia bonuss percentage will be increased by 5% i.e. instead of 10% it will be 15% to all employees". It