LALAPPA LINGAPPA & ORS. vs LAXMI VISHNU TEXTILE MILLS LTD., SHOLAPUR

The Supreme Court held that under Section 4(1) of the Payment of Gratuity Act, 1972, gratuity is payable to employees who have rendered continuous service, which includes periods of unauthorized leave as per Section 2(c). The Court clarified that permanent employees cannot be denied gratuity due to unauthorized absence if they have been in continuous service, while badli workers are entitled to gratuity for their badli period upon becoming permanent, regardless of whether they worked for 240 days. The High Court's ruling that unauthorized absence results in a break of service was overturned, affirming the entitlement to gratuity.