RAJASTHAN WELFARE SOCIETY vs STATE OF RAJASTHAN

The Supreme Court ruled that gratuity payable to employees of aided educational institutions must be considered when determining the amount of grant-in-aid under the Rajasthan Non-Government Educational Institution Act, 1989. The Court emphasized that the provisions of the Payment of Gratuity Act, 1972, apply to such institutions, and the State Government has the authority to regulate terms of employment, including gratuity, under Section 16 of the Act. The Court held that the definition of 'aid' under Section 2(a) encompasses all forms of financial support provided to recognized institutions, thereby affirming the obligation to include gratuity in grant calculations.