In Brief
A Municipal Corporation in Uttar Pradesh disputed claims by two employees for gratuity under the Payment of Gratuity Act. The Corporation argued employees were entitled to gratuity only under internal Retirement Benefit regulations, not the statutory Act. The Supreme Court upheld the High Court's dismissal of the appeal, holding that a Central Government notification extends the Payment of Gratuity Act to local bodies including Municipal Corporations. Therefore, employees are entitled to gratuity under the Act's provisions, not merely internal regulations. The controlling authorities' orders granting gratuity were upheld.
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