In Brief
An agricultural university challenged orders requiring it to pay gratuity to employees who had exercised an option to extend their retirement age to 60 years. The Supreme Court upheld the High Court's decision, holding that an employee's choice to extend working life does not forfeit gratuity entitlement. The Court affirmed that only strict compliance with the Payment of Gratuity Act, 1972 (Section 5), with prior State Government approval, can exempt an establishment from gratuity obligations. The High Court's reduction of interest from 10% to 6% per annum was found reasonable. The petitions were dismissed.
The lawyer headnote and full judgment text are available to registered users.