SHITLA SHARAN SRIVASTAVA vs GOVT. OF INDIA .

The Supreme Court ruled that the employees of the State Bank of India are not entitled to enhanced gratuity beyond the limits set by the Payment of Gratuity Act, 1972, specifically Section 4(5), which allows for better terms under agreements but does not retroactively apply to gratuity enhancements prior to 24.9.1997. The Court clarified that the recommendations of the 5th Pay Commission apply only to government employees and not to bank employees. The petitioners' claims for enhanced gratuity of Rs. 2.50 lakhs and Rs. 3.50 lakhs were denied, affirming the applicability of the amended Act effective from 24.9.1997 only.