THE EMPLOYERS OF AZAM JAHI MILLS LTD. vs THE WORKMEN

The Supreme Court held that in calculating the available surplus for bonus under the Industrial Disputes Act, the Tribunal erred by spreading gratuity and retrenchment compensation over five years instead of deducting them in the year they were incurred. The Court found that the gross profit calculated by the appellants was correct, and the Tribunal's decision regarding idle machinery deductions was unjustified. Consequently, the Court ruled that there was no available surplus for the payment of bonus for the year 1960-61, thus overturning the Tribunal's directive for bonus payment.