INSTITUTE OF ECONOMIC GROWTH Vs. CONTROLLING OFFICER

JUDGEMENT

(1.) The appellant, Institute of Economic Growth, assails the order dated 16th March, 2010 passed by the learned Single Judge dismissing their Writ Petition (C) No. 4560/1999. The aforesaid writ petition was directed against the order dated 26th February, 1999 passed by the Controlling Officer under the Payment of Gratuity Act, 1972 (Act, for short), whereby the appellant was required to pay Rs. 32,290/- towards balance gratuity to Mr. Chaman Singh, respondent No. 2 herein. The appellant was also directed to pay interest @ 10% per annum, subject to maximum amount of gratuity.

(2.) We agree with the counsel for the appellant that the definition clause Section 2(5) of the Shop and Establishment Act, 1954 is not incorporated and cannot be the basis for defining the term establishment used in Section 1(3)(b) of the Act but we are not inclined to interfere with the final direction passed by the Competent Authority under the Act or by the learned Single Judge. -

(3.) The respondent NO. 2 retired in 1994 after rendering 38 years of service with the appellant institute. He had joined the institute in 1963 and at the time of retirement, he was paid Rs. 67,710/- towards gratuity. His claim was that he was entitled to gratuity of Rs. 1 lac i.e. the amount stated in the Act. The legal issue raised is of academic interest, in view of notification dated 3rd April, 1997 under Section 1(3)(c) of the Act by which educational institutions in which 10 or more persons were or are employed are covered by the Act.