Payment of Gratuity Act, 1972 (39 of 1972), Section 4 -- Assam Financial Corporation (Amendment) Staff Regulations, 2007, Regulation 107 – Assam Financial Corporation (Payment of Gratuity to Employees) Regulation, 1964 -- Gratuity to AFC employee -- Ceiling for gratuity as per AFC’s internal regulations not in sync with the Act -- State Government employees ceiling enhanced to Rs.15,00,000/- -- Interpretation of the regulation must be made which is in favor of the employees -- Regulation 107 of the 2007 Regulations states ‘…maximum of Rs.3.50 lacs or as notified by the Govt. of Assam from time to time…’ -- Appellant’s submission that the payment of enhanced pay scale / allowances must first be approved by the Board of Directors rejected – Held, in case where the limit prescribed by the State Government is higher than the limit set by the AFC, the import of Regulation 107 has to be interpreted in such a manner that the benefit of the higher limit set by the State Government has to be given to the employees of the AFC – High Court granted benefit of the enhanced gratuity in terms of the provisions of the Payment of Gratuity Act, 1972 – Appeal of AFC dismissed.

(Para 5, 6, 10, 16, 17)