PETLAD TURKEY RED DYE WORKS LTD. vs DYES & CHEMICAL WORKERS' UNION,PETLAD & ANR.

The Supreme Court held that any portion of a reserve fund utilized as working capital should be entitled to a reasonable rate of return, which can be deducted as a prior charge in determining the available surplus for bonus calculations. The Court clarified that the balance sheet alone does not prove the utilization of the reserve as working capital; the employer must provide evidence to substantiate this claim. The Industrial Tribunal's disallowance of interest on the depreciation fund was thus incorrect, and the appeal was allowed.