According to the MSEB rules, employees can withdraw one third of their gratuity, two years before retirement. However, after the state government increased the age of superannuation from 58 years to 60 years, MSEB told their employees (those who had withdrawn gratuity) to either return the amount or forego additional two years' service. A circular to this effect was issued on May 30.

The newly floated MSEB workers' union challenged this circular in the high court. When the matter first came up for hearing, MSEB counsel sought additional time for reply. However, the division bench of Justice B N Srikrishna and Justice P D Upasani warned the board against going ahead with the circular till final hearing of the matter.

The MSEB counsel today filed an affidavit stating that they have extended the option periodto give more time to its employees and Justice Srikrishna asked the MSEB management not to take back the gratuity amount. Instead, he suggested, MSEB should calculate the interest that the company would earn on the amount from the date of withdrawal by the employee to the new date of his superannuation. The judge has granted two weeks' time to the managementof the electricity board to decide on the issue.