E.I.D. PARRY (I) LTD. vs G. OMKAR MURTHY

The Supreme Court held that the Payment of Gratuity Act, 1972 does not apply to employees whose wages exceed Rs. 1,000 per month, as per Section 2(e) of the Act. The Court found that the Andhra Pradesh Shops and Establishments Act, 1966, specifically Section 40(3), was applicable and more beneficial to the respondents, thus allowing their claim for gratuity under the State Act. The Court ruled that the Central Act does not override the State Act in this context, affirming the lower court's decision in favor of the respondents.