INDIAN LINK CHAIN MANUFACTURES LTD. vs THEIR WORKMEN

The Supreme Court examined the validity of a settlement under Section 19(2) of the Payment of Bonus Act, 1965, and the Industrial Disputes Act, 1947, determining that the absence of a notice of termination meant the settlement continued to subsist. The Court held that the Tribunal erred in fixing consolidated wages without linking dearness allowance to the cost of living and in using balance sheet figures for depreciation instead of income-tax assessments. The judgment clarified the criteria for determining financial capacity and the implementation of gratuity schemes, ultimately upholding the need for clarity in wage components.