P&H: Upholds Gratuity Award to Pharmacy College Teacher, Says CPF-Cum-Gratuity Payment Did Not Extinguish Statutory Right

punjab-haryana
⚖️ Order Date: 06 Aug 2026
Headnotes

(i) Payment of Gratuity Act, 1972, S.14 — Statutory gratuity — Statutory right of an employee to claim gratuity stands on an entirely different footing from retiral benefits admissible under service rules, regulations, or provident-cum-gratuity scheme — Mere circumstance that employee was extended the benefit of CPF-cum-Gratuity scheme would...

(ii) Payment of Gratuity Act, 1972, Section 2A — Continuous service — Suspension and break in service — Suspension of employee was never followed by any order treating period as a break in service under any standing order, rule, or regulation governing the establishment — Employee...

(iv) Payment of Gratuity Act, 1972, Ss.1(3)(c), 2(e), 7(7), Payment of Gratuity (Amendment) Act, 2009, S.13-A — Teachers in educational institutions — Gratuity could be computed only with effect from the date from which educational institutions employing ten or more persons were brought within coverage of...


Facts of the Case

P&H: Upholds Gratuity Award to Pharmacy College Teacher, Says CPF-Cum-Gratuity Payment Did Not Extinguish Statutory Right

The Punjab and Haryana High Court has dismissed a writ petition filed by S.D. College of Pharmacy and another institution challenging an order that granted gratuity to a retired lecturer. The court upheld the Appellate Authority’s decision under the Payment of Gratuity Act, 1972, and found no reason to interfere with the reduced gratuity amount fixed in favour of the employee.

The dispute concerned R.K. Bansal, who had served as a lecturer since 1986 and retired in 2014. He had claimed gratuity for his long service, while the college argued that he was not entitled to it because he was...

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