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As per case facts, appellants, who were authorized collection agents, claimed gratuity after their Central Mini Deposit Scheme was discontinued in 2022. The Controlling Authority allowed gratuity based on "fall
...back wages" but excluded commission. Both parties appealed; the Appellate Authority upheld this decision. The Single Judge dismissed subsequent writ petitions upholding the previous orders. The appeal to the High Court arose from these dismissals. The central legal question for the High Court was whether a master-servant relationship existed between the bank and the agents, and if "fall back wages" could be considered wages under the Payment of Gratuity Act, 1972. Finally, the High Court determined that a master-servant relationship did exist, treating collection agents as employees, and that "fall back wages" indeed fall under the definition of wages under the 1972 Act, being distinct from commission/incentives. Consequently, the High Court found no illegality in the Single Judge's order and dismissed all appeals.
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