BASTI SUGAR MILLS co. LTD. vs STATE OF U.P. & ANR.

The Supreme Court addressed the legality of a government notification under Section 3(b) of the U.P. Act concerning the payment of bonus, asserting that the State Government acted within its powers as per Section 3(c) of the 1947 Act. The Court held that the agreement recognized under Section 34 of the Payment of Bonus Act, 1965, was valid and binding, and the notification was not in violation of the Bonus Act. The appeal was dismissed, affirming the High Court's decision that the notification was lawful and based on a legitimate agreement.