1997 Supreme(Kar) 444
Karnataka High Court
BAGI BEEDI FACTORY, HUBLI - Appellant
Versus
APPELLATE AUTHORITY UNDER THE PAYMENT OF GRATUITY ACT - Respondent
Decided On : 08-07-97
W.P. : 1647 of 1990
K.H.JAGADISH, S.N.MURTHY, S.V.SHASTRI
Headnote:Payment of Gratuity Act, 1972-Sections 1(3)(b) and 2(1)-Beedi and Cigar Workers (Conditions of Employment) Act, 1966-Section 2(f)(i), (h) (i)-Definition of employee-establishment defined under Beedi Act has a wider meaning-it not only includes the industrial premises but also includes the place, though outside the industrial premises, where rolling of Beedis is done by the workers as such Home Workers rolling Beedis are also persons working in the establishment.
( 1 ) THE third respondent's husband was a 'home worker', and, as such, an employee within the meaning of Section 2 (f) (i) of the beedi and cigar workers (conditions of employment) Act, 1966 ('beedi act' for short ). On his death, his widow, the third respondent applied to the concerned authorities under the payment of Gratuity Act, 1972 ('gratuity Act' for short) for payment of gratuity in respect of her husband who had been a 'home worker' for over thirty years prior to his death. Petitioner- management of M/s. Bagi beedi factory, hubli, contended that the husband of third respondent, though a 'home worker' and an employee within the meaning of Section 2 (f) (i) of the beedi Act, was not an 'employee' within the meaning of Section 2 (e) of the Gratuity Act, and, as such, the third respondent was not entitled to gratuity sought for. The authorities rejected this contention of the employer and passed an order in favour of the third respondent. In this petition under article 226 of the constitution. Petitioner-employer seeks quashing of the said order.
( 2 ) THE facts are not in dispute. Third respondent's husband had been, at the instance of the petitioner-employer, rolling beedies in his house and delivering them at the premises of the employer and to the satisfaction of the employer. He did so for over thirty years. If he can be called an employee within the meaning of the Gratuity Act, there is no doubt that his widow would be entitled to gratuity as ordered by the authorities. The only question that, therefore, arises is whether an employee like the husband of third respondent could be called an 'employee' under the Gratuity Act.
( 3 ) CERTAIN definitions, both under the beedi act and gratuity Act, as also the definition of 'employee' under the employees' provident funds and miscellaneous Provisions Act, 1952 ('provident funds act', for short) may be extracted. Section 2 (f) (i) of the beedi act. (i) "employee" means a person employed directly or through any agency, whether for wages or not, in any establishment to do any work, skilled, unskilled, manual or clerical, and includes. (i) any labourer who is given raw material by any employer or a contractor for being made into beedi or cigar or both at home (hereinafter referred to in this act as "home worker" ). Section 2 (h) of the beedi act. "establishment" means any place or premises including the precincts thereof in which or in any part of which any manufacturing process connected with the making of beedi or cigar or both is being, or is ordinarily, carried on and includes an industrial premises. Section 2 (i) of the beedi act. "industrial premises" means any place or premises (not being a private dwelling-house), including the precincts thereof, in which or in any part of which any industry or manufacturing process connected with the making of beedi or cigar or both is being, or is ordinarily, carried on with or without the aid of power. Section 3 of the beedi act. "industrial premises to be licensed. Save as otherwise provided in this Act, no employer shall use or allow to be used any place or premises as an industrial premises unless he holds a valid licence issued under this act and no such premises shall be used except in accordance with the terms and conditions of such licence". Section 1 (3) (b) of the Gratuity Act. " (3) it shall apply to. (a ). . . . . . . . (b) every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a state, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months". Section 2 (e) of the Gratuity Act. "2. Definitions. In this act unless the context otherwise requires. (a) to (d ). . . . . . . ; (e) "employee" means any person (other than an apprentice) employed on wages, in any establishment, factory, mine, oil field, plantation, railway company or shop, to do any skilled, semi-skilled, or unskilled,