UNION OF INDIA & ORS. vs R. C. JAIN & ORS.

The Supreme Court held that the Delhi Development Authority (DDA) qualifies as a 'local authority' under Section 32(iv) of the Payment of Bonus Act, 1965, thus exempting it from the Act's provisions. The Court established that a local authority must possess attributes such as separate legal existence, autonomy, and the ability to manage local funds. The appeal was allowed, overturning the High Court's decision that had favored the employees' claim for bonus payments.