BEED DISTT. CENTRAL COOP. BANK LTD. vs STATE OF MAHARASHTRA .

The Supreme Court addressed the applicability of the Payment of Gratuity Act, 1972, particularly Section 4, which mandates gratuity payment upon termination of employment after five years of continuous service. The Court held that the employees of the co-operative bank were entitled to gratuity calculated at the rate of 15 days' wages for each completed year of service, with a ceiling limit of Rs. 3.50 lakhs as per the amendments made by the Payment of Gratuity (Amendment) Act, 1998. The Court emphasized that the employees' acceptance of the bank's gratuity scheme did not negate their rights under the statutory provisions of the 1972 Act.