S.R. DAS, CJI.

(1) THIS is an appeal by special leave from a decision of the Labour Appellate tribunal at Bombay, dated 23/11/1955. The Baroda Borough Municipality is the appellant, and the respondents are the workmen employed in the electricity department of the said Municipality represented mostly by the Baroda State Electric Workers Union (hereinafter called the respondent Union). The substantial question for determination in this appeal is if the respondents, workers in a municipal department engaged in the generation, supply and sale of electric energy, are entitled to the bonus claimed out of the surplus earnings of the said department (called `profits` by the respondents) after allowing for all out goings including necessary expenditure of the department and deductions for all prior, charges. The question is, a short one, but has an importance and consequences reaching beyond the limits of the particular case in which it has arisen.

(2) WE may first state the relevant facts. Before 1/05/1949, on which date the former State of Baroda was merged in and integrated with the then Province of Bombay (now the Bombay State), the Baroda Electric Supply Co