BARODA BOROUGH MUNICIPALITY vs ITS WORKMEN

The Supreme Court held that the workers in the electricity department of the Baroda Municipality were not entitled to a bonus as claimed, under the Bombay Municipal Boroughs Act, 1925. The Court reasoned that the earnings of one department could not be considered gross profits in a commercial sense, as the municipality operated under a single budget encompassing all departments. The decision emphasized that distinguishing between workers of earning and spending departments would lead to unrest rather than harmony among employees.