SUDHIR CHANDRA SARKAR vs TATA IRON & STEEL CO. LTD. AND OTHERS.

The Supreme Court held that the appellant, who resigned after 29 years of service, was eligible for retiring gratuity under Rule 6 of the Retiring Gratuity Rules, 1937, as 'retirement' includes termination of service by resignation. The Court found that Rule 10, which grants absolute discretion to the employer regarding gratuity payment, is ineffective and unenforceable. Additionally, the Court affirmed that the claim for gratuity can be enforced through civil suit, thus allowing the appeal and reinstating the Subordinate Judge's decree for gratuity payment.