Judgment-

S. C. AGRAWAL

( 1 ) THE question which falls for consideration in this appeal is whether in respect of textile undertaking whose management has been taken over under the provision of the Textile Undertaking (Take Over of Management) Act. 1983 (for short the Act) the National Textiles Corporation (South Maharashtra) Ltd.- Respondent No. 1 (for short ntc) is liable for the gratuity payable to an employee who had ceased to be in employment prior to the take over of the management of the undertaking.

( 2 ) MOHAN Sambhaji Parab, respondent No. 2 herein. was in the employment of M/s. Finlay Mills Ltd.- respondent No. 3 from 1/01/1954 till 22/03/1983 when he resigned. He made a claim of Rs. 16730. 00 towards gratuity payable under the Payment of Gratuity Act, 1972 and submitted and application in Form I with respondent No. 3 Since the respondent No. 3 failed to pay the amount of gratuity, respondent No. 2 moved the Controlling Authority under the Payment of Gratuity Act seeking for the recovery of the said amount of Rs. 16,730. 00. On 18/10/1983, the President of India promulgated the Textile Undertakings (Taking Over of Management) Ordinance, 1983 whereby the management of the Co