The main legal point established in the judgment is that the term 'wage' under the Payment of Gratuity Act, 1972 includes interim relief granted to employees and should receive a liberal interpretation consistent with the principles of equity and fair play.

1. This writ petition came to be posted on being specially ordered by the order of the Hon'ble Chief Justice dated 28.01.2011.

2. The writ petition is filed by M/s.Hindustan Photo Films, the wholly owned company by the Central Government represented by the Deputy General Manager. The challenge made in this writ petition is to the common order passed by the first respondent in Appeal Nos.8 of 2004, 310 to 325 of 2004 dated 25.11.2004. The writ petition was admitted on 17.01.2005. Pending writ petition, this court granted an interim stay. For some contesting respondents, notice is yet to be served. Some contesting respondents have passed away and the Legal Representatives have been brought on record. However, for R10, Mr.N.Manokaran appears.

3. Respondents 3 to 19 were employees of the petitioner company and they moved the second respondent - Controlling Authority under the Gratuity Act claiming a difference in gratuity payable to them. Their claim was based upon the interim relief granted to them. Therefore, they moved the applications before the second respondent claiming the computation of the interim relief as part of the wage and for non-payment, they claimed 10% simple interest. The second respondent - Controlling Authority directed the payment of gratuity inclusive of interim relief together with 10% simple interest from the date of actual payment due till the date of payment. Against the order dated 30.01.2004 and 27.02.2004, passed by the Controlling Authority, the petitioner company filed Gratuity Appeal Nos.8 of 2004 to 310 to 325 of 2004 under Section 7(7) of the Payment of Gratuity Act, 1972.

4. The Appellate Authority concurred with the order passed by the second respondent and dismissed the appeals filed by the petitioner company. The appellate authority held that the term wage found in Section 2(s) of the Payment of Gratuity Act, 1972 includes all payments which are earned by an employee while on duty or on leave in accordance with the terms and conditions of his employment and which are paid or are payable to him in cash and includes dearness allowance but does not include any bonus, commission, house rent allowance, overtime wages and any other allowance. Therefore, on the basis of the all inclusive definition, the appellate authority held that the conclusion of the Controlling Authority is just in lieu of wage revision. Therefore, the appeals filed by the petitioner was rejected.

5. Challenging this order, the petitioner company contended that the petitioner company is having scheme and if any dispute relating to the payment, only arbitration will lie. It is also contended that since the petitioner company has become sick and referred to BIFR for framing scheme and due to the intervention of Central Government's announcement of ban on wage revision in terms of sick industries, the company entered into a settlement under Section 18(1) of the Industrial Disputes Act for payment of interim relief at the rate of 5% of pay. Subsequently, despite revival package, the company could not be revived. Therefore, the employees were given voluntary retirement in terms of Voluntary Retirement Scheme introduced during 1999. At that time, the dues of the employees were paid including gratuity. Therefore, there cannot be any further claim in respect of the payment of gratuity.

6. Since the claim of gratuity is based upon the provisions of the Payment of Gratuity Act, 1972 being a special enactment any claim for payment has to be raised before the Authorities under the Act and not before any other forum. This position of law has been clarified by the Supreme Court in State of Punjab Vs. Labour Court, Jullundur and other reported in (1980) 1 SCC 4. In paragraph No.7, the Supreme Court observed that the Payment of Gratuity Act enacts a complete code containing detailed provisions covering all the essential features of a scheme for payment of gratuity. It creates the right of payment of gratuity, indicates when the right