Cases

Case 1:
Delhi Cloth and General Mills co. ltd. Vs. Workmen:
It was held the object of providing a gratuity scheme is to provide a retiring benefit to the workmen who have rendered long and unblemished service to the employer and thereby contributed to the prosperity of the employer.

Case 2:
Indian Hume Pipe Co. ltd. vs. its workmen
Held- The general principle underlying gratuity schemes is that by faithful service over a long period the employee is entitled to claim a certain amount as retirement benefit. Gratuity is one of the necessary efficiency devices for an orderly and human elimination of a) superannuated b) disabled employees from industry. Otherwise, they will continue to be in employment in spite of becoming inefficient.

Case 3:
Patel Hiralal Ramlal and co. vs. Smt. Chandbibi Pirubhai:
It was held- the workmen carrying raw materials from the employers premises to their home and rolling up bidis at their home for manufacturer are employee and as such are entitled to the payment of gratuity.

Case 4:
D.B.R Mills Ltd. Vs. Appellate Authority under The Payment of Gratuity Act:
The question was whether public holidays including Sundays are to be excluded from computing 240 days or not? It was held Cessation of work by the employee on these days cannot be said to be due to any fault of the employee. Therefore, he would be deemed in continuous service if he has been actually employed by an employer during the 12 months, immediately preceding the year for not less than 240 days in an establishment. The Payment of gratuity by an employer to the employee is mandatory.