In Brief
Birla Institute of Technology (BIT), a premier technical education institution, appealed against orders requiring it to pay gratuity to a retired assistant professor. The High Court had upheld the gratuity claim under the Payment of Gratuity Act, 1972. The Supreme Court held that teachers employed for imparting education are not 'employees' under the Act's definition of Section 2(e), which covers only skilled, semiskilled, unskilled, manual, supervisory, technical, clerical, managerial or administrative workers. The Court applied its settled principle from Ahmadabad Pvt. Primary Teachers Association, holding it applies to all teachers regardless of the educational institution type. The appeal was allowed and the gratuity claim dismissed as not maintainable.
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