in Shitla Sharan Srivastava -vs- Government of India [(2001) 6 SCC 106] by pointing out that the amendment enhancing the maximum of gratuity to Rs.3,50,000/- in Section 4(3) of the Payment of Gratuity Act, 1972, came into effect only from 24.09.1997, and those who retired prior to that date cannot claim that benefit. It also requires to be noticed here that in Municipal Corporation of Delhi -vs- Dharam Prakash Sharma [(1998) 7 SCC 221] and Nagar Ayukt Nagar Nigam -vs- Mujib Ullah Khan (Order dated 02.04.2019 in Civil Appeal No. 2628 of 2017), the Hon'ble Supreme Court of India has made the legal position clear and in respect of establishments governed by the Payment of Gratuity Act, 1972, in view of the overriding effect contained in Section 14 of that Act, the liability to pay gratuity in accordance with the provisions of that Act would not cease even if pension with gratuity is paid to its employees under some other statutory provision, unless specific exemption had been obtained under Section 5 of that Act on being satisfied that the employees are in receipt of gratuity and pensionary benefits not less favourable than the benefits conferred under that Act. It is not in dispute that no such exemption has been obtained in respect of the Tamil Nadu Civil Supplies Corporation Limited, in which the Appellants had worked till their retirement from service. In other words, the right of the Appellants to claim gratuity arises only under the provisions of the Payment of Gratuity Act, 1972, and they cannot fall on the Tamil Nadu Pension Rules, 1978, to derive the benefit of enhancement of the maximum amount of gratuity from Rs.3,50,000/- to Rs.10,00,000/-, with effect from earlier date on 01.01.2006 instead of 24.05.2010, when the amendment came into force.
