MESSRS. ISPAHANI LTD. CALCUTTA vs ISPAHANI EMPLOYEES UNION

The Supreme Court held that the workmen were entitled to a puja bonus equal to one month’s wages as it constituted an implied term of their employment, based on customary practice and unbroken payment history. The Court established that an implied agreement for bonus payment can be inferred if the payment was consistent, made over a sufficient duration, and not given as a gift. However, the workmen were not entitled to benefits from their previous employer, M/s. M. M. Ispahani Ltd., as they had agreed to terminate their services with that company without any continuity of service assurance from the appellant.