M/S. LIPTON LIMITED AND ANOTHER vs THEIR EMPLOYEES

The Supreme Court addressed the jurisdiction of the Tribunal regarding the fixation of grades and scales of pay and the claim for bonus by employees of a Delhi office of a UK-based company. The Court upheld the Tribunal's finding that the Indian branch operated as a separate entity, thus not entitled to bonus based on global profits, as the Indian employees did not contribute to profits derived from outside India. However, the Court affirmed the Tribunal's decision to increase wages by 20% and to apply the revised scales retrospectively from January 1, 1954, establishing that the financial capacity of the company could be considered for wage fixation, despite the separate accounting of the Indian branch.