WORKMEN OF M/S BATA SHOE CO., (P) LTD. vs M/S BATA SHOE CO. (P) LTD.

The Supreme Court held that the general bonus paid under the agreement dated August 30, 1962, constituted an annual bonus linked to production, thus falling under Section 32(vii)(a) of the Payment of Bonus Act, 1965. The Court dismissed the appeal, affirming that the payments made were not ex-gratia but rather a profit bonus, as they were based on productivity and paid quarterly. Consequently, the workers were not entitled to claim any additional bonus under the Act for the period covered by the agreement.