The Karnataka High Court, in BMRCL v. Nandeesh H.V. (29 June 2026), held that gratuity was not payable because the employee had completed only 4 years, 9 months and 12 days of service, falling short of the statutory requirement of five years under Section 4 of the Payment of Gratuity Act, 1972.

The Controlling Authority had directed BMRCL to pay gratuity, and the Appellate Authority had upheld that order. The High Court found that both authorities had failed to consider the mandatory five-year service requirement. Accordingly, the Court quashed both orders, allowed BMRCL’s writ petition, and directed that any amount deposited be released/refunded to BMRCL. BMRCL-Nandeesh Gratuity judgement.pdf