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march 1964

Supreme Court of India · 1964-03-25

MANAGEMENT OF BOMBAY CO. LTD. vs WORKMEN

Citation / case number
SC 1963/64
Court
Supreme Court of India
Petitioner
MANAGEMENT OF BOMBAY CO. LTD.
Respondent
WORKMEN
Bench
WANCHOO, K.N.

Judgment text excerpt

The Supreme Court held that the payment of bonus connected with a festival can be inferred as an implied condition of service, even if not uniform in previous years. The tribunal's decision to award 1 1/2 months' wages as Christmas bonus was challenged, but the Court found that there was indeed an implied condition of service for such payment, as evidenced by past practices. The Court clarified that the payment must be linked to a festival, and in this case, the payment of one month's salary as Christmas bonus was established as an implied term of service.

MANAGEMENT OF BOMBAY CO. LTD. vs WORKMEN · Niyam