In Brief
BCH Electric Limited challenged a High Court order directing it to pay gratuity to employee Pradeep Mehra without any ceiling under the company's Gratuity Scheme. The employee claimed entitlement to uncapped gratuity under the scheme. The Supreme Court held that where an employee is covered by the Payment of Gratuity Act, 1972, gratuity must be calculated strictly under the Act, including the statutory ceiling under Section 4(3), regardless of what the company scheme provides. The Court rejected arguments that extra payments to other employees created a right to similar treatment. The appeal was allowed.
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