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2015 (8) TMI 91 - HC - Companies LawPayment of gratuity to director Having agreed to make payment of gratuity as per content terms, claim that gratuity not admissible was not maintainable Held that:- Section 4(5) of Payment of Gratuity Act, 1971, makes it clear that nothing shall effect the right of employee to receive better terms of gratuity under any award or agreement or contract with employer Even if employee does not fall within meaning of definition prepared for Section 4-A, nothing prevents employer company from entering into any agreement with employee for payment of gratuity. Respondent was employed with Appellant and received regular emoluments No reason not to be treated as employee Nothing prevents Appellant-company from entering into separate contract for payment of gratuity with whole-time employee who was holding more than 5 per cent voting rights in company Letter dated 3 January 2014 addressed by LIC show that Respondent was actually included in gratuity scheme and policy taken from LIC in connection with scheme. Where there was unequivocal admission of liability to pay gratuity to Respondent coupled with promise to pay same as per content terms It was agreed and confirmed by appellant that gratuity shall be paid to Respondent on account of his resignation No infirmity in order of CLB Appeal dismissed Decided in favour of Respondent.
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