In Brief
Nationalised banks had fixed a cut-off date of 31.10.1994 for calculating gratuity using revised pay-scales (effective from 01.07.1993), excluding employees who retired before that date. Employees challenged this as violating constitutional equality. While upholding that cut-off dates in regularisation processes are lawful, the Court invoked Article 142 of the Constitution to grant relief, directing the banks to pay Rs. 2,00,000/- per employee as full and final settlement, acknowledging nearly 25 years of litigation by a small number of claimants."
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