M/S. PEIRCE LESLIE & CO., LTD., KOZHIKODE vs THEIR WORKMEN

The Supreme Court held that in determining bonus claims under the Industrial Disputes Act, the entire surplus cannot be allocated solely to a small percentage of workmen who raised the claim. The Court emphasized that the risk in business and the capital employed must be considered, ruling that no unusual risk was present to justify a higher return on capital. The Court upheld the Industrial Tribunal's award of an additional bonus of 5 months' basic wages, affirming that rehabilitation allowances must be justified and cannot be claimed without adequate grounds.