In the High Court of Bombay at Aurangabad
RAVINDRA V. GHUGE, J.
Chief Executive Officer, Zilla Parishad, Beed
Versus
The Assistant Labour Commissioner, and Controlling Authority & Another
Writ Petition No.1855 of 2012
Decided on : 27-11-2013
The payment of gratuity and its provisions is a part of social security legislation which not only has to be dealt with on a broader spectrum, but with a high degree of sensitivity.
1. Rule. Rule made returnable forthwith. Heard by consent of the parties.
2. Admitted fact emerging from the petition is that the judgment and order dated 23/08/2011 passed by respondent No.1 Assistant Labour Commissioner and Controlling Authority under the Payment of Gratuity Act, 1972 (Hereinafter referred to as "Gratuity Act"), Latur in P.G.A.No.19/2010 has been challenged.
3. Short point that arises for my consideration is as to whether the provisions of Section 7(7) r/w. the proviso thereunder of the Gratuity Act can be by-passed to invoke the writ jurisdiction of this Court under Article 226 and 227 of The Constitution of India.
4. In early days, this scheme was introduced in those establishments only where the employers were so kind and generous to the workers or there was an agreement between the employers and the workers. This scheme was confined to the particular establishments and even within those establishments, to certain categories of staff. There was no general legislation for the payment of Gratuity to all industrial workers. In due course of time, it was felt that the workers should get gratuity as a right in return of their long dedicated services to the industry. Industrial Tribunals and Supreme Courts dealt with the disputes on the subject and their awards and decisions brought revolutionary changes in Social Security Legislations in Indian industrial sector.
5. In the case of Delhi Cloth and General Mills Co. Ltd. Vs Workmen and others (AIR SC 1970 919) the Honourable Supreme Court has held that the object of providing a gratuity scheme is to provide a retiring benefit to the workman who has rendered long and unblemished service to the employer and thereby contributed to the prosperity of the employer. In the Working Journalists (Conditions of Service) & Miscellaneous Provisions Act, 1955, the provision to pay the gratuity to the working journalists was made.
6. After few years, the Government of Kerala enacted the Kerala Industrial Employees Payment of Gratuity Act, 1970 making gratuity a statutory right of the employees. West Bengal Government enacted the West Bengal Employees Payment of Gratuity Act, 1971 relating to the subject. The other states were also thinking to legislate such enactments. Thus, it was felt that there should be a uniform central legislation for the whole country instead of state legislations for each and every separate states. The whole matter was discussed in the Labour Ministers’ Conference held on 24th August 1971 and thereafter in the Indian Labour Conference held on 22nd and 23rd October 1971 it was agreed that the central legislation on the payment of gratuity should be undertaken. Accordingly, the payments of Gratuity Act, 1972 was enacted, largely based on the West Bengal legislation, which came into force on 16th September, 1972.
7. The payment of Gratuity Act, 1972 is thus an enactment of the Parliament. It has a specific scheme providing for payment of gratuity to the employees engaged in different establishments/industries and to deal with matters connected therewith. Nevertheless, the Parliament has made provisions for dealing with several incidental issues, naturally for entertaining disputes as regards admissibility of gratuity, amount of gratuity and many others arising out of non payment of gratuity. The machinery to deal with such cases is in place and there is a mechanism provided for adjudicating upon such disputes.
8. Section 3 of the Gratuity Act defines the Controlling Authority. Section 4 of the Gratuity Act provides for the payment of gratuity after the determination of employment of an employee who has rendered not less than 5 years in continuous service. Similarly, section 7 determines the amount of gratuity and sub section 7 enables a party to prefer an appeal to the appropriate Government or such other authority as may be specified by the appropriate Government in this behalf. Limitation period of 60 days is provided with a pre-condition of
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