STATE OF TAMIL NADUREPRESENTED BY SECRETARY,HOUSING DEPTT., vs K.SABANAYAGAM & ANR. ETC.

The Supreme Court addressed the applicability of the Payment of Bonus Act, 1965 to employees of the Tamil Nadu State Housing Board, determining that the Housing Board was not entitled to statutory exemption under Section 32(V)(C) of the Act. The Court upheld the High Court's ruling that the State's retrospective exemption under Section 36 was legally unsustainable. Consequently, the Housing Board was directed to pay statutory bonuses to its employees from the accounting year 1978-79 onwards.