The authority under the Payment of Wages Act has jurisdiction to hear and decide claims for retrenchment compensation.

( 1 ) THE petitioner in this case presented an application under Section 15 (2) of the payment of Wages Act before the competent authority for an order against the respondents Nos. 3 to 5 for payment of retrenchment compensation for him. According to the petitioner he was in the service of the said respondents for nearly 30 years; that on 29th September, 1959, non-applicant No. 5 the Bombay Garage, jabalpur, intimated to him that his services were terminated from 30th september. 1939, and that his claim for payment of retrenchment compensation was not countenanced by the said opponents. The authority under the Payment of wages Act rejected the petition holding that there was a dispute whether the applicant was in the service of the aforesaid opponents and whether his services had been terminated; that it had no jurisdiction to determine this dispute; and that the petitioner's remedy was before the Industrial Court. The petitioner then preferred an appeal before the District Judge, Jabalpur, against the order of the authority. That appeal was rejected by the learned District Judge on the authority of the decision of this Court in P. L. Singh v. C. B. Kekre, AIR 1960 madh-Pra 146. The applicant now prays that the order of the authority refusing to entertain his application under Section 15 (2) be quashed and a writ of mandamus be issued to the authority for entertaining his claim.

( 2 ) THE short question that arises for determination in this case is as to the jurisdiction, of the authority under the Payment of Wages Act to hear and decide a claim for payment of retrenchment compensation. Section 15 of the Payment of wages Act gives to the authority jurisdiction to hear and decide for any specified area claims arising out of deductions of wages, or delay in payment of wages of persons employed or paid in that area. As has been very recently pointed out by the Supreme Court in Shri Ambica Mills Co v. S. B. Bhatt, AIR 1961 SC 970: ". . . . . the only claims which can be entertained by the authority are claims arising out of deductions or delay made in payment of wages. The jurisdiction thus conferred on the authority to deal with these two categories of claims is exclusive, for Section 22 of the Act provides that matters which lie within the jurisdiction of the authority are excluded from the jurisdiction of ordinary civil courts. Thus in one sense the jurisdiction conferred on the authority is limited by Section 15, and in another sense it is exclusive as prescribed by Section 22. In dealing with claims arising out of deductions or delay made in payment of wages the authority inevitably would have to consider questions incidental to the said matters. In determining the scope of these incidental questions care must be taken to see that under the guise of deciding incidental matters the limited jurisdiction is not unreasonably or unduly extended. Care must also be taken to see that the scope of these incidental questions is not unduly limited so as to affect or impair the limited jurisdiction conferred on the authority. "

( 3 ) NOW, 'wages' as defined in Section 2 (vi) (d) of the Act include "any sum which by reason of the termination of employment of the person employed is payable under any law, contract or instrument. . . . . . . '' Any gratuity payable "on the termination of employment in cases other than specified in Sub-clause (d)'' is, however, excluded under Sub-clause (e) (6) of Section 2 (vi) from the definition of wages. The amount of retrenchment compensation payable to an employee is clearly an amount payable to him by reason of the termination of his employment. It is not a gratuity payable on the termination of employment. The distinction between retrenchment compenspation and gratuity has been pointed out by the Supreme Court in Indian Hume Pipe Co. V. The Workmen, AIR 1960 SC 251. It was observed in that case that gratuity paid to workmen is intended to help them after retirement, whether the retirement