Judgment

CHINNAPPA REDDY, J.:- The management of Goodyear India Limited are the appellants in this appeal by special leave of this court under Art. 136 of the Constitution. The question relates to the gratuity payable to the respondent in relation to the period of his service from January 24, 1961 to December 31, 1974. With effect from September 1, 1972, he was drawing wages of more than Rs. 1000/- per month. The Payment of Gratuity Act, 1972 came into force on September 16,1972. By section 4 of the Act, it was prescribed that gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years - (a) on his superannuation or (b) on his retirement or resignation or (c) on his death or disablement due to accident or disease. An employee is defined by Sec. 2(e) of the Act as meaning a person employed on wages not exceeding one thousand rupees per mensem in any establishment etc. The figure Rs. 1000/- was later substituted by the figure Rs. 1600/- but during the relevant period, it was Rs. 1000/- only. The submission on behalf of the management was that both on the date when the Act came into force and on the