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PETITIONER: B.N. ELIAS AND CO., LTD., EMPLOYEES’UNION AND OTHERS
Vs.
RESPONDENT: B. N. ELIAS & CO., LTD., AND OTHERS.
DATE OF JUDGMENT: 24/03/1960
BENCH: WANCHOO, K.N. BENCH: WANCHOO, K.N. GAJENDRAGADKAR, P.B. GUPTA, K.C. DAS
CITATION: 1960 AIR 886 1960 SCR (3) 382 CITATOR INFO : R 1963 SC 474 (6) R 1963 SC1007 (8,27) R 1972 SC 70 (11)
ACT: Industrial Dispute--Bonus--Implied term of agreement or condition of service--Ex gratia Payments--Customary bonus--Puja bonus.
HEADNOTE: Since 1942 the respondents had been making ex gratia pay- ments to their employees (appellants) in addition to wages and salaries, but these were not regular and in 956, no ex gratia payments were made at all. The appellants claimed that their right to be paid bonus had become an implied term of agreement or a condition of service and, at any rate, it should be paid as customary bonus, and relied on the case of The Graham Trading Co. (India) Ltd. v. Its Workmen, [1960] 1 S.C.R. 107. The evidence showed that though the payments were made from 1942 to 1952 it was made clear every time that the payments were made as ex gratia: Held, (1) Where payments are made to workers ex gratia and are accepted as such, it is not possible to imply a term of service on the basis of an implied agreement to pay bonus. (2) that there cannot be a customary paymen...