SATHISH NINAN, J.

What is the gratuity payable to employees of a Society covered by an LIC linked policy scheme where the Society is governed by the Payment of Gratuity Act, 1972, has been answered by a Full Bench of this Court in Chandrasekharan Nair v. Kerala State Co-operative Agricultural and Rural Development Bank Ltd. [2017 (4) KLT 276 (F.B).]. The judgment of the Full Bench was affirmed by a three Judges Bench of the Apex Court in SLP(C) No. 009446-009451/2018 after notice to the other side on admission.

2. In Chandrasekharan Nair v. Kerala State Cooperative Agricultural and Rural Development Bank Ltd. (supra), the Full Bench held thus;

“(i) In cases where gratuity is linked with LIC policies, it will be considered as, 'a right to receive better terms of gratuity', in terms of Section 4(5) of the Payment of Gratuity Act.

(ii) The employee shall be entitled to the entire amount due under the policy.

(iii) The mere fact that the employee is not eo-nominee a party to the agreement with the LIC is of no consequence. This is on the principle that a beneficiary under a contract in trust is eligible for the benefits under the contract.

(iv) The above is the law for Societies wi