Wanchoo, J. - (1.) This is an appeal by special leave against the decision of the Labour Appellate Tribunal in an industrial matter. The appellant M/s. Kapoor and Co. (hereinafter called the company) is an industrial concern engaged in manufacturing lace of all kinds. The respondents are the workmen employed by the company as represented by the Lace Workers' Union, Delhi. An industrial dispute arose between the company and its workmen, and it was referred to the Industrial Tribunal by the Delhi State Government on 6-11-1954. Four matters were the subject of reference, of which only one has been urged in this appeal before us and we shall confine ourselves to that. It relates to the demand for profit bonus equal to two months' wages for the years 1952 and 1953. It appears that soon after the reference reached the Industrial Tribunal, an agreement was arrived at on 27-11-1954 between the workmen represented by the union and the company on all the matters which were the subject of reference. So far as bonus was concerned, the agreement was that the company would pay three weeks' wages by way of bonus for the year 1952 and that the question of bonus for the year 1953 would be settled later between the company and its workmen. This agreement was, however, repudiated by the workmen in December 1954 and in consequence the Industrial Tribunal proceeded to adjudicate upon the matter. By its award dated 8-8-1955, it held that no bonus could be paid for these two years as there was no available surplus of profit to justify it. It, however, expressed the hope that the company would not ask for the refund of three weeks' wages already paid as bonus under the agreement and would grant that as an 'ex gratia' payment to the workmen.
(2.) There was an appeal by the workmen against this award to the Labour Appellate Tribunal, which was allowed and the workmen were ordered to be given one month's salary as bonus for the years 1952 and 1953, irrespective of the fact that the accounts of the two years did not show any available surplus. Thereupon the company applied for special leave to appeal to this Court, which was granted; and that is how the matter has come before us.
(3.) The main contention of the company is that the Appellate Tribunal erred in law in granting profit bonus for one month each for the years 1952 and 1953, when it was apparently of opinion that the accounts of the two years did not show any available surplus. It is contended that the grant of profit bonus depends upon the availability of surplus as worked out according to the Full Bench formula evolved in the Mill-Owners Association, Bombay vs. Rashtria Mill Mazdoor Sangh, Bombay, 1959 Lab LJ 1247 (L A T I-Bom). That formula has been the subject of consideration by this Court recently in Associated Cement Companies Ltd., Dwarka vs. Their Workmen, C. A. No. 459 of 1957, Decided on : 5-5-1959 and has been approved. The Labour Appellate Tribunal, therefore, was not right when it decided to give one month's bonus for these two years, irrespective of the availability of any surplus.;