Management Of Ksrtc Th. Chief Law ... vs R. Krishna Reddy

The Supreme Court ruled that the Road Transport Corporation must adhere to the provisions of the Payment of Gratuity Act, 1972, specifically regarding the calculation of gratuity based on the merger of Dearness Allowance with basic pay. The Court held that the merger of Dearness Allowance, as per the Government Order dated 28.11.1995, should be considered for calculating gratuity, thereby ensuring that employees receive benefits in line with statutory requirements. The judgment emphasized the need for statutory compliance in gratuity payments, affirming the applicability of the Act to the Corporation's employees.