SHRI AMBICA MILLS LTD. NO. 1 vs THE TEXTILE LABOUR ASSOCIATION, AHMEDABAD,, AND VICE VERSA

The Supreme Court addressed a dispute regarding the bonus payable under the Payment of Bonus Act, 1965, specifically interpreting Item 6(g) concerning allowable deductions for subsidies. The Court held that 'subsidy' includes direct cash payments but excludes indirect assistance like Customs Drawback and railway freight rebates. The Joint Plant Committee was determined not to be a body corporate established by law, thus affecting the deductions claimed by the mills. The Court upheld the Industrial Court's decision regarding permissible deductions, affirming that only direct cash subsidies qualify under Item 6(g).