The main legal point established in the judgment is the interpretation of the provisions of the Payment of Gratuity Act, 1972, particularly Section 4, regarding the eligibility for gratuity, the calculation of gratuity for piece-rated employees, and the determination of '15 days' wages'. The judgment clarified the legal framework for the payment of gratuity to employees and provided guidance on the application of the Act in similar cases.

P.Subramonian Poti, J.

1. The petitioners in these two petitions are the same and similar orders are under challenge in these petitions. The first respondent in O.P. No. 587 of 1976 as well as the first respondent in O.P. No. 3507 of 1976 moved petitions under the provisions of the payment of Gratuity Act, 1972 before the Controlling Authority constituted under that Act. This was opposed by the employer, the petitioner herein. After taking evidence and hearing the parties the Controlling Authority passed an order under the Payment of Gratuity Act (hereinafter called the Act). That was taken up by the petitioner in appeal before the Appellate Authority. The orders of the Appellate Authority confirming the order of the Controlling Authority are under challenge in these two petitions.

2. The petitioner is the owner of the Travancore Oil Mills at Alleppey which has a factory registered under the Factories Act engaged in copra crushing, pepper garbling and processing. According to the petitioner copra crushing is seasonal in nature and even during the season the copra crushing unit works only intermittently. The first respondent in O.P. No. 587 of 1976 is a cooper in the copra crushing unit attending to coopering work on such of those days on which there is availability of such work. The petitioner avers that the first respondent was getting only 6 to 7 days work in a month and he was being paid on piece rate basis. The first respondent in the other petition is a tinker who too has work to do only on certain days in a month. It is the petitioner's case that the respondents do not have continuous work so much so they cannot claim gratuity on the plea that they have the minimum service which entitles them to the payment of gratuity. The second plea raised by the petitioner concerns the quantum of gratuity payable. According to the petitioner such quantum has to be determined on the basis of average wages per day which in turn has to be determined by dividing the total wages in a period of 3 months by the total number of days in a period of 3 months. The petitioner's further case is that wages that could be earned for 13 days should be taken as 15 days' wages which is due as gratuity for one year of service. These contentions were not accepted by the Controlling Authority as well as the Appellate Authority. These are the matters raised in these petitions.

3. I will now refer to the relevant provisions of the Payment of Gratuity Act, 1972. S.4 provides that“

"4. Payment of gratuity -- (1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years, --

(a) on his superannuation, or

(b) on his retirement or resignation, or

(c) on his death or disablement due to accident or disease:

Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement:

Provided further that in the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs,

Explanation.-- For the purposes of this section, disablement means such Page:3 -disablement as incapacitates an employee for the work which he was capable of performing before the accident or disease resulting in such disablement."

Sub-s.(2) of that section reads as follows;

"(2) for every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned:

Provided that in the case of a piece rated employee, daily wages shall be computed on the average of the total wages received by him for a period (if three months immediately preceding the termination of his employment, and, for this purpose, the wages paid for any overtime work shall not be taken into account:

Provided further that In the case of an