Bombay High Court: Gratuity Act Prevails Over State Pension Rules Without Specific Exemption

The Bombay High Court held that gratuity under the Payment of Gratuity Act, 1972 must be paid unless an employer has been specifically exempted under Section 5.

The court rejected a Zilla Parishad’s argument that the Maharashtra Civil Services (Pension) Rules, 1982 allowed withholding gratuity due to past disciplinary proceedings.

The Court noted that the minor misconduct cited did not meet the threshold of Section 4(6), which permits forfeiture only in cases of serious offences like termination due to violence or fraud.

Citing Section 14, the court reaffirmed that gratuity laws override conflicting service rules.