1. The question involved in this petition is whether an educational institution, such as the petitioner, is covered by the Payment of Gratuity Act. The respondent who was employed with the petitioner had claimed gratuity under the Payment of Gratuity Act, 1972 (for short, "the Act"). The application was allowed by the Controlling Authority under the Act. An appeal was preferred by the petitioner which was rejected and the order of the Controlling Authority was confirmed.

2. The main contention raised on behalf of the petitioner is that the petitioner being a college of agriculture, the Payment of Gratuity Act, 1972 is not applicable. It is submitted that the Payment of Gratuity Act, 1972 has no application to an educational institution in view of the provisions of Section 1 sub-section (3) of the Payment of Gratuity Act. The counsel for the petitioner submits that the provisions of this section are applicable to only those establishments which are covered by the section and, therefore, the authorities have erred in granting the gratuity to the respondent.

3. It would be advantageous to set out the provisions of Section 1(3) of the Payment of Gratuity Act, 1972. Section 1(3)