BINNY LTD. vs THEIR WORKMEN

The Supreme Court held that under the Payment of Bonus Act, 1965, bonus for a particular accounting year must be computed based on gross profits determined at the close of the accounting year, as per Section 19, which mandates payment within 8 months post-accounting year. The Court found that the Industrial Tribunal's direction for half-yearly bonus payments contradicted the Act's provisions, as bonuses can only be claimed after the accounting year ends. Consequently, the Tribunal's order was set aside, affirming that the employer is not obligated to make half-yearly bonus payments.