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PETITIONER: BARODA BOROUGH MUNICIPALITY
Vs.
RESPONDENT: ITS WORKMEN
DATE OF JUDGMENT: 13/11/1956
BENCH: DAS, S.K. BENCH: DAS, S.K. BHAGWATI, NATWARLAL H. AIYYAR, T.L. VENKATARAMA MENON, P. GOVINDA
CITATION: 1957 AIR 110 1957 SCR 33
ACT: Industrial Dispute-Bonus-One department of a municipality having surplus earnings-Whether workers engaged in that department can claim bonus-Bombay Municipal Boroughs Act, 1925 (Bom. Act XVIII Of 1925).
HEADNOTE: The Baroda Electric Supply Concern was owned and managed by the State of Baroda. Immediately before the merger of the State in the Province of Bombay, the State made a gift of the Concern to the Baroda Municipality to provide it with a new source of revenue as. aid from the State might not be continued after the merger. Later in 1951, the workmen employed in the electricity department demanded bonus and the dispute was referred for adjudication. The bonus was claimed on the basis that the electric Concern was a commerical concern, that it was making ’huge profits and that the workmen were entitled to bonus as a share in the profits. The municipality resisted the demand, inter alia, on the grounds that the earnings of one department could not be treated as profits of the municipality, and that as a whole the muncipal budget for the relevant period was a deficit budget. Held, that the ...