THIMMAPPA RAI Vs. PRESIDING OFFICER LABOUR COURT MANGALORE

JUDGEMENT

(1.) M.Thimmappa Rai-the petitioner was an Asst Registrar of Co-operative Societies. On 14-5-1964, he retired from Govt service at the age of 55. On 3-8-1S64, he was appointed by the S.Kanara Central Co-operative Wholesale Stories Ltd, Mangalore. His services were continued from time to time till he reached 60, and also thereafter till 30-6-71 on which date he was relieved from service. He had thus continuous service of nearly seven years from 3-8-1964 to 30-6-1971.

(2.) The petitioner claimed terminal benefits like retrenchment compensation, gratuity, leave salary etc. The Management refused to grant the same. He, thereupon, approached the Labour Court under S.33C(2) of the Industrial Disputes Act. The Labour Court rejected all his claims except the leave salary for 39 days though he had to his credit 80 days. The Labour Court observed that the petitioner's continuation in service beyond the age of 60 years was contrary to Rule 18 (2) of the Karnataka Co-operative Societies Rules, 1960 (shortly called 'the Rules'), and the said service being illegal, cannot be counted for determining the gratuity. Challenging the view taken by the Labour Court, the petitioner has approached this Court under Art.227 of the Constitution.

(3.) I will first consider the validity of the claim for gratuity. The age of Superannuation of an employee of any Co-operative Society is 58 as provided under Rule 18(2) of the Rules. Discretion, however, has been given to the Management to extend the services upto 60 years with the approval of the Registrar. Rule 18(4) provides for the payment of gratuity. It reads: