The Tribunal held that the workmen were entitled to fixed customary bonus at the rate of 10.5 per cent of the annual salary or wages earned by each workman companycerned for the years 1974 to 1977.
The said award was challenged by the Management before the Calcutta High Court in a writ petition filed under Article 226 of the Constitution.
Before the Tribunal it was submitted by the workmen that the bonus was being paid to them since the year 1959 and that for the years 1959 to 1963 bonus was paid at the rate of three and a quarter months basic wages and for the years 1965 to 1973 it was paid at the rate of 10.5 per cent of the total annual salary or wages and that in the year 1964, it was paid at the rate of 4 per cent on the basis of Payment of Bonus Ordinance, 1965.
The present appeal is directed against the said judgment of the Division Bench of the High Court.
The said writ petition was allowed by a learned Single Judge of the said High Court by judgment dated September 21, 1982 whereby the learned Single Judge set aside the award made by the Tribunal on the view that the workmen had failed to establish that they were entitled to payment of customary bonus.
Bonus as aforesaid for each of the accounting years mentioned in clause a above will be paid in the next succeeding year approximately two weeks before the Pujas.
If so, at what rate?
The calculation of bonus will be as under Total basic salary received during the year x 3 1/4 The above quantum of bonus will be paid irrespective of working results of the Company during the years 1962 to 1966 both inclusive which will, however, number be treated as a companydition of service for further years.
The said decision of the learned Single Judge was companyfirmed, in appeal, by a Division Bench of the High Court by judgment dated November 17, 1986.
With regard to payment of bonus for the year 1959 a dispute was raised by the workmen and the same was discussed in joint companyference of the representatives of the workmen as well as the Management before the Conciliation Officer and a settlement was reached on July 25, 1962 whereby the parties mutually agreed to settle number only the bonus issue for 1959 but also to enter into an agreement of bonus for all the years up to and including 1966.
The relevant terms of the said settlement are as under All workmen of Messrs Kettlewell Bullen Co. working at 21, Strand Road, Calcutta 1, will be paid three and a quarter months basic salary as bonus for each of the years 1962 to 1965 both inclusive .
The Tribunal by its award dated April 16, 1982 found that the bonus was paid by the Management for a long period from 1959 onwards number on the basis of the profit calculation and usually in the month of September before Puja festival and that from 1965 to 1973 it was being paid at the uniform rate of 10.5 per cent, and, therefore, the bonus which was being paid by the Management had ripened into a customary bonus due to a long usage.
The Judgment of the Court was delivered by AGRAWAL, J. This appeal by the workmen of Kettlewell Bullen Company Ltd. hereinafter referred to as the workmen involves the question whether the workmen are entitled to customary bonus at the rate of 10.5 per cent of the total annual salary or wages in respect of the years 1974 to 1977.
By order dated September 11, 1979 the Government of West Bengal referred to the Eighth Industrial Tribunal hereinafter referred to as the Tribunal the following dispute for adjudication under Section 10 of the Industrial Disputes Act, 1947 Whether the workmen are entitled to customary bonus for the accounting years 1974, 1975, 1976 and 1977?
The Union also agrees number to make any demands for any additional bonus of any kind during these years as stated hereinabove.
