the maximum qualifying salary of Rs.1,000/- under the Industrial Disputes Act, 1947. The employee in that case contended that under Clause 15 of the settlement dated 4th December, 1981 the Supervisory staff was covered by the Payment of Gratuity Act, 1972. The application was allowed and the Petition filed by the corporation was dismissed by a Learned Single Judge. At the hearing of the appeal it was urged on behalf of the corporation that the settlement dated 4th December, 1981 would not apply to an employee who had retired on 31st July, 1981. The Division Bench negatived the submission, holding that the settlement was to be effective from 1st April, 1981. The Division Bench dealt with the second submission and noted that Clause 15 of the settlement dated 4th December, 1981 proceeded on the basis of the guarantee contained in paragraph 4 of the Government Resolution dated 30th April, 1975 under which the existing conditions of service were protected. The appeal was accordingly dismissed. Before this Court, reliance has also been placed upon a judgment of a Learned Single Judge of this Court (Mody, J.) in Misc. Petition 656 of 1976. The Learned Single Judge in that case held that the corporation was bound to apply conditions of service which were not less favourable than those available until 31st August, 1975.