WORKMEN OF THE HERCULES INSURANCE CO., LTD. vs HERCULES INSURANCE CO., LTD., CALCUTTA

The Supreme Court held that under Section 31A(1)(c) of the Insurance Act, 1938, there is an absolute prohibition against the payment of bonuses to employees in the general insurance business. The Court affirmed that the exception in proviso (vii) must be strictly interpreted, leaving the matter of bonus payment to the discretion of the Central Government. Consequently, the Industrial Tribunal's decision to invalidate the reference for adjudication under Section 10(1) of the Industrial Disputes Act, 1947, was upheld, confirming the Tribunal's ruling on the preliminary objection raised by the employer.