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march 1962

Supreme Court of India · 1962-03-05

JARDINE HENDERSON LTD. vs THE WORKMEN AND ANOTHER

Citation / case number
SC 1961/94
Court
Supreme Court of India
Petitioner
JARDINE HENDERSON LTD.
Respondent
THE WORKMEN AND ANOTHER
Bench
WANCHOO, K.N.

Judgment text excerpt

The Supreme Court addressed the issue of closing bonus under industrial dispute law, determining that the appellant company was justified in reducing the closing bonus from one month's pay to half a month's pay due to decreased profits in 1958. The Court held that the closing bonus had not become an implied condition of service nor a customary bonus, as it was not linked to any festival. The ruling clarified that the payment of the closing bonus was contingent upon the company's profits from the previous year, thus affirming the tribunal's decision regarding the bonus payment.

JARDINE HENDERSON LTD. vs THE WORKMEN AND ANOTHER · Niyam