DELHI CLOTH & GENERAL MILLS CO., LTD. vs WORKMEN AND ORS. ETC.

The Supreme Court addressed the applicability of gratuity schemes under the Industrial Disputes Act, specifically examining whether the Tribunal could impose a gratuity scheme on A.T.M. despite a prior settlement with its workmen. The Court held that the Tribunal had jurisdiction to apply the gratuity scheme, emphasizing that the financial stability of A.T.M. did not exempt it from gratuity obligations. The Court clarified that the determination of gratuity should consider basic wages rather than consolidated wages, and that misconduct should not negate gratuity entitlement.