A.P. Foods vs S. Samuel & Ors

The Supreme Court upheld the decision of the Andhra Pradesh High Court affirming the Single Judge's ruling that the Payment of Bonus Act, 1965 applies to the appellant, a non-profit organization run by the Andhra Pradesh Nutrition Council. The Court found that the appellant's claim of operating without profit motive was factually incorrect and that the stoppage of ex-gratia payments to employees was unauthorized. The Court clarified that the provisions of the Act, specifically Sections 20 and 22, do not exempt the appellant from compliance, thus reinforcing the employees' entitlement to bonus payments.