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PETITIONER: MUIR MILLS CO., LTD.
Vs.
RESPONDENT: SUTI MILLS MAZDOOR UNION, KANPUR.
DATE OF JUDGMENT: 19/11/1954
BENCH: BHAGWATI, NATWARLAL H. BENCH: BHAGWATI, NATWARLAL H. MAHAJAN, MEHAR CHAND (CJ) DAS, SUDHI RANJAN AIYYAR, T.L. VENKATARAMA
CITATION: 1955 AIR 170 1955 SCR (1) 991
ACT: Bonus -Meaning of - Necessary conditions for the demand thereof-Industrial claim-Principles for the grant of it- Social Justice-Meaning of--Industrial Tribunals--Whether Tribunals within the meaning of Art. 136 of the Constitution.
HEADNOTE: The term bonus is applied to a cash payment made in addition to wages. it generally represents the cash incentive given conditionally on certain standards of attendance and efficiency being attained. 992 There are two conditions, which have to be satisfied before a demand for bonus can be justified and they are, (1) when wages fall short of the living standard and (2) the industry makes huge profits part of which are due to the contribution which the workmen make in increasing production. The demand for bonus becomes an industrial claim when either or both these conditions are satisfied. The formula for the grant of bonus is as follows:- As both labour and capital contribute to the earnings of the industrial concern, it is fair that labour should derive some benefit, if there is a surplus after meeting prior or necessary cha...