'No Discrimination Once State Fixes Higher Limit', Supreme Court Upholds Higher Gratuity Amount For Retired Employees Of Assam Finance Corp

The Supreme Court upheld a higher gratuity limit fixed by the Assam government for employees of the Assam Finance Corporation, holding that once a higher limit is lawfully fixed, denial of parity constitutes discrimination. The Court examined statutory and administrative frameworks for gratuity determination, emphasising equality and uniform application of benefits across categories. The judgment reinforces that government undertakings must ensure consistent welfare treatment of employees and cannot arbitrarily restrict entitlements. This decision strengthens employees’ rights within PSUs and clarifies that state-fixed enhancements have binding force unless expressly rescinded by competent authority.