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HR Manual Cannot Override Approved Gratuity Rules: Calcutta HC

Case Law Details

TaxGuru Citation
2026 taxguru.in 5523
Case Name
Akansha Agarwal Vs Union of India And Ors. (Calcutta High Court)
Date of Judgement/Order
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Akansha Agarwal Vs Union of India And Ors. (Calcutta High Court)

Calcutta HC Rejects Higher Death Gratuity Claim Because Amended Gratuity Rules Prevailed Over HR Manual; Calcutta HC Dismisses Plea for Higher Gratuity Due to Erroneous Initial Calculation; Amended Gratuity Rules Applicable Despite Delayed HR Manual Correction; Calcutta HC Refuses Additional COVID Death Gratuity Because PSU Never Adopted Government Memorandum

In Akansha Agarwal Vs Union of India And Ors., the Calcutta High Court dismissed an appeal seeking higher death gratuity payable to the husband of the appellant, who was employed with Balmer Lawrie, a public sector undertaking under the Government of India.

The appeal arose from an order dated March 4, 2025, by which the Learned Single Judge had dismissed the writ petition filed by the appellant. The appellant relied on a communication dated June 15, 2021 issued by the employer stating that gratuity payable would be Rs. 8,55,048/-. However, a subsequent communication dated June 22, 2021 clarified that the earlier calculation was erroneous and that the actual gratuity payable was Rs. 2,46,648/-.

The company contended that the first calculation was incorrect because amendments to the gratuity rules, effective from July 16, 2013 with approval of the Commissioner of Income Tax, had not been incorporated into the HR manual due to mistake. Although the HR manual was formally rectified only in May 2022, the amended gratuity rules had remained in force since July 2013.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 20,910

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