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1984 Supreme(AP) 48

K.MADHAVA REDDY, SARDAR ALI KHAN
D. B. R. Mills Ltd. – Appellant
Versus
Appellate Authority, Under Payment of Gratuity Act – Respondent


K. MADHAVA REDDY, C. J.

( 1 ) THESE four appeals raise a common question of law as to the mode of computing the amount of gratuity payable to a workman under the Payment of Gratuity Act, 1972 (Act 39/72) (hereinafter referred to as the Act ). The D. B. R. Mills Ltd. is a Public Ltd. Company (hereinafter referred to as the Company ). The appellant herein is the employer within the meaning of S. 2 (f) of the Act and is liable to pay gratuity u/s 4 of the Act to its employees who have been in continuous service as defined u/s 2 (c) of the Act. There is no dispute that the appellant Company is the employer and the third respondent in each of these writ Appeals is its employee. Under sub-s. (2) of S. 4 of the Act, for every completed year of service or part thereof in excess of six months the employer is under an obligation to pay gratuity to an employee "at the rate of fifteen days (wages)" based on the rate of wages last drawn by the employee concerned. The employees claim that in computing the continuous service Sundays and public holidays on which days the Establishment is closed or the employees are given a holiday should also be taken into account and if they have been in employme







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