JABALPUR BIJLIGHAR KARAMCHARIPANCHAYAT vs JABALPUR ELECTRIC SUPPLY CO., LTD. & ANR.

The Supreme Court held that the criteria for awarding a customary or traditional festival bonus include uniformity of payment over an unbroken series of years, connection to a festival, and payment even in years of loss. The Court found that the employees' claim for a 10% festival bonus was not supported by evidence of a consistent practice or implied term of employment, as there was no claim for such bonus from 1940-41 to 1945-46 and the payments were not related to any festival. Additionally, the Court established that the calculation of bonus must follow the Full Bench formula from Associated Cements Co. Ltd. v. Its Workmen, requiring specific adjustments to gross profits for accurate computation.