JEEWANLAL (1929) LTD.ETC. ETC. vs THE APPELLATE AUTHORITY UNDER THE PAYMENT OF GRATUITY ACT &

The Supreme Court interpreted Sections 4(2) and 4(3) of the Payment of Gratuity Act, 1972, clarifying that 'fifteen days’ wages' for a monthly-rated employee should be calculated based on the actual daily wage derived from dividing the monthly wage by 26 working days, rather than simply taking half of the monthly wage. The Court upheld the High Court's decision, restoring the Controlling Authority's order that mandated this calculation method, thus ensuring the employee received the correct gratuity amount. The ruling emphasized the need for accurate computation in line with the Act's provisions, reinforcing the principle of beneficent construction in social welfare legislation.