In Brief
An employee of Indian Overseas Bank retired in May 1994 claimed additional gratuity based on revised salary arrears paid from July 1993, but the bank had fixed a cut-off date of November 1994 for gratuity computation under a settlement. The employee was awarded Rs. 85,400 as the difference. The Supreme Court held that fixation of separate cut-off dates for salary revision and gratuity benefits, based on rational grounds, does not violate Article 14. The Court approved a Full Bench Kerala judgment upholding such differentiation and dismissed the bank's appeal, directing non-recovery if the amount was already paid.
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