Pathak, J. - (1.) These appeals by special leave are directed against the common judgment and order of the Patna High Court dismissing two appeals filed by the Regional Director, Employees' State Insurance Corporation on the question whether the respondent is liable to pay the disputed bonus to its workmen.
(2.) The respondent, Bata Shoe Company (P) Ltd., has a branch factory at Digha Ghat and another at Mokamah in the State of Bihar. At the Digha Ghat branch, the respondent entered into a settlement with its workmen on May 6, 1947, in which it was agreed that production bonus payable to the workmen would remain unaltered but employees earning less than Rs.. 200/- would get an extra bonus called "good attendance bonus" at 5% of their yearly salary provided they completed active service for 265 days annually inclusive of Saturdays. It was stipulated that attendance bonus would be calculated in the same way as production bonus. On November 28, 1951 there was an agreement by which it was agreed that "the system of attendance bonus for the year 1952 will be discontinued and the ex gratia bonus's percentage will be increased by 5% i.e. instead of 10% it will be 15% to all employees". It was also agreed that corresponding changes would be made in the Standing Orders and Rules in order to incorporate these changes. Later, another settlement was recorded, this time before the Chairman, Industrial Tribunal, Bihar, in a pending Reference of 1955 where it was mentioned that the respondent had agreed to increase the general bonus, effective from the first quarter of 1957, from 15% to 16%. Thereafter on July 27, 1961 there was another settlement which provided:- "In view of the overall satisfactory settlement on all the outstanding points of the Union and of those points raised by the management, as a gesture of goodwill the management declared that with effect from 3rd quarter of 1961 the General Bonus will be increased from 161/2% to 171/2%. The workmen's representatives appreciated this gesture of the management and expressed satisfaction on behalf of the workmen on the increase of General Bonus." This was followed, by a further settlement dated January 9, 1963 arrived at in the course of conciliation proceedings before the Conciliation Officer-cum-Deputy Labour Commissioner, Bihar. It provided that: "BONUS: The rate of payment of bonus, effective from 4th quarter of 1962 will stand revised at 19% in place of 171/2% as at present. The payment of bonus will be made one month after the end of each quarter at the rate of 19% of the total salary and/or wages paid to each workman and employee during the quarter immediately preceding (such salary or wages are exclusive of any other special allowance or rewards granted to him during such period). Such bonus will be payable only to those who have completed six months' approved service ending on the last day of the quarter; and to those who have completed less than six months' approved service on the last day of the quarter, the bonus will be payable at the rate of 191/2% of their total salary or wages as aforesaid. The bonus will be available only to those who are in the employ of the company on the last day of the quarter and who have given regular and approved service during the quarter to which the payment of bonus is available." The last document recording a settlement is dated July 17, 1963, and pursuant to it the bonus clause was deleted from the Standing Orders and Rules.
(3.) The facts relating to the respondent's Mokamah factory are substantially similar, except that the bonus scheme was not incorporated at any time in the Standing Orders and Rules.;