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march 1960

Supreme Court of India · 1960-03-24

B.N. ELIAS AND CO., LTD., EMPLOYEES'UNION AND OTHERS vs B. N. ELIAS & CO., LTD., AND OTHERS.

Citation / case number
SC 1959/73
Court
Supreme Court of India
Petitioner
B.N. ELIAS AND CO., LTD., EMPLOYEES'UNION AND OTHERS
Respondent
B. N. ELIAS & CO., LTD., AND OTHERS.
Bench
WANCHOO, K.N.

Judgment text excerpt

The Supreme Court ruled that ex gratia payments made by an employer to employees do not imply a term of service or a customary right to bonus unless explicitly stated. The Court clarified that customary bonuses can only be recognized if they are connected to specific festivals, such as Puja. The Court held that for the year 1956, one month's basic wage should be paid as Puja bonus to subordinate staff, affirming the traditional practice within the company. The case of The Graham Trading Co. (India) Ltd. v. Its Workmen was explained in this context.

B.N. ELIAS AND CO., LTD., EMPLOYEES'UNION AND OTHERS vs B. N. ELIAS & CO., LTD., AND OTHERS. · Niyam