LOK 2019 (4) SC 27 · Supreme Court of India
Equivalent citations: 2019 INSC 449 : AIR 2019 SC 1665 : JT 2019 (4) SC 10 : 2019 KLT (Online) 3055 : 2019 (5) Scale 756 : (2019) 6 SCC 103 : 2019 KHC 6391
Two municipal bodies in Uttar Pradesh, at Kanpur and Gorakhpur, challenged orders of the Controlling Authorities under the Payment of Gratuity Act, 1972 granting gratuity to their retired employees, which the High Court had upheld. The municipalities contended that their employees were entitled to gratuity only under the Retirement Benefits and General Provident Fund Regulations, 1962 framed under Section 548 of the U.P. Municipal Corporation Act, 1959, which capped gratuity at 16.5 months, and that the Central Act did not apply as local bodies were neither factories nor establishments covered by the State shops law. The employees relied on a Central Government notification of 08.01.1982 under Section 1(3)(c) of the Act.