1985 (8) TMI 272 - SC - Companies Law

Whether the workmen of the Associated Rubber Industry Ltd., Bhavnagar entitled to be paid bonus at the rate of 16% for the year 1969 as the transfer of the shares of INARCO Ltd. to Aril Holdings Ltd. was no more than a device to avoid payment of higher bonus to the workmen?

Held that:- The amount. of dividend from INARCO Ltd. received by the Aril Holdings Ltd. should be taken into account in assessing the gross profit of the Associated Rubber Industry Ltd. for the purpose of calculating the rate of bonus payable to the workmen of the Associated Rubber Industry Ltd. The appeal is allowed with costs and it is declared that the workmen of the Associated Rubber Industry Ltd., Bhavnagar, are entitled to be paid bonus at the rate of 16% for the year 1969. Appeal allowed.