NAGAR NIGAM, GORAKHPUR vs SHRI RAM SHANKER YADAV

The Supreme Court upheld the applicability of the Payment of Gratuity Act, 1972 to employees of the Municipal Corporation, rejecting the appellant's argument that gratuity should be governed by the Uttar Pradesh Municipal Corporation Act, 1959 and its associated regulations. The Court clarified that the Act applies to Municipal employees as per Section 2(e) of the Act, and that the Central Government's notification under Section 1(3)(c) extends the Act's applicability to Municipalities. The Court affirmed the High Court's decision, thereby allowing the claims for gratuity under the Act.