Customary attendance bonus remains payable alongside statutory bonus where it falls outside the Payment of Bonus Act scheme.

The Payment of Bonus Act, 1965 was treated as governing only profit-based bonus and matters connected with that statutory scheme, so it did not extinguish customary or contractual bonus outside its field. Attendance bonus, established by long usage and paid before the Act, was held to remain separately payable in addition to the statutory bonus. The prior decision relied on by the High Court was read as not ruling that all other forms of bonus were displaced by the Act, and the High Court was therefore wrong to set aside the award.

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Issues: Whether attendance bonus, being a customary/non-statutory bonus, could be claimed in addition to the bonus payable under the Payment of Bonus Act, 1965.

Analysis: The statutory scheme was treated as confined to profit-based bonus and matters connected therewith. The prior decision relied upon by the High Court was understood as not deciding that all other kinds of bonus were extinguished. Customary or attendance bonus, founded on long usage and outside the statutory field, was held not to be displaced merely because the Bonus Act applied to profit bonus.

Conclusion: Attendance bonus, having been found to be paid from before and being outside the purview of the Act, remained payable over and above the statutory bonus; the High Court was wrong in setting aside the award.

Ratio Decidendi: The Payment of Bonus Act governs profit-based bonus and does not abrogate customary or contractual bonus outside its scheme.

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