NAGAR AYUKT NAGAR NIGAM vs SRI MUJIBULLAH KHAN.

The Supreme Court examined the applicability of the Uttar Pradesh Gratuity Payment Act, 1971, and the Uttar Pradesh Municipalities Act, 1959, in relation to gratuity claims by employees. The Court held that employees of municipalities are entitled to gratuity under the provisions of the 1959 Act, specifically Section 548, and not under the 1971 Act. The judgment clarified that the definition of 'employee' under the 1971 Act does not extend to municipal employees, thereby upholding the High Court's decision that the gratuity calculation should be based on the 1959 Act's provisions.