Assam Financial Corporation Ltd. v. Bhabendra Nath Sarma 2025 INSC 1264 - Gratuity
Payment of Gratuity Act, 1972 -Assam Financial Corporation (Payment of Gratuity to Employees) Regulation, 1964 - Regulation 107 - When the regulations themselves (particularly Regulation 107) import the higher ceiling for payment of gratuity as accepted by the State Government under the Payment of Gratuity Act, the right of the employees flows from the said regulation - Question as to whether the Payment of Gratuity Act itself applies to the AFC or not may be considered in an appropriate case. (Para 20)
Case Info
- Case name: Assam Financial Corporation Limited & Ors. v. Bhabendra Nath Sarma & Ors.
- Neutral citation: 2025 INSC 1264.
- Coram: Justice J.K. Maheshwari; Justice Vijay Bishnoi.
- Judgment date: October 14, 2025.
- Court: Supreme Court of India, Civil Appellate Jurisdiction.
- Appeal from: Gauhati High Court, Writ Appeal No. 260 of 2022; Impugned judgment dated 25.07.2023.
Statutes / Laws Referred
- Payment of Gratuity Act, 1972 — Sections 4 (gratuity), 4(5) (better terms), and 14 (non‑obstante).
- Assam Financial Corporation (Payment of Gratuity to Employees) Regulation, 1964.
- Assam Financial Corporation (Amendment) Staff Regulations, 2007 — Regulation 107 (gratuity ceiling and formula).
- Government of Assam Notifications dated 24.08.2012 and 17.01.2018 (pay/allowance revisions for State PSUs).
- Internal instruments: Office Order AFC/Estt/497/2012‑13/1028 dated 25.07.2012 (ceiling raised to Rs. 7 lakhs); Memo No. 6335 dated 02.03.2022 (“Enforcement of Gratuity at par with Government of Assam”); Board Minutes (395th meeting, 08.03.2022) deferring enhancement.
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