SOUTHERN CLOCK INDUSTRIES Vs. REGIONAL JOINT LABOUR COMMISSIONER

JUDGEMENT

(1.) Whether the Kerala Industrial Employees' Payment of Gratuity Act, 1970 (hereinafter referred to as 'Kerala Act') is applicable after the enactment of the Payment of Gratuity Act, 1972 (hereinafter referred to as the 'Central Act') is the question referred to the Division Bench for decision in this case. Before dealing with the question, we consider the facts of the case.

(2.) The petitioner establishment is a small scale industrial unit employing six persons. The second respondent herein was a Carpenter employed there. He was retrenched from service on 22.5.1992. The facts that his last drawn wages was Rs.974/- and that he had twelve years' service at the time of retrenchment are not disputed. The second respondent filed an application before the Controlling Authority for payment of gratuity. The employer / petitioner contended that he is not entitled to gratuity because under the Central Act only establishments employing ten or more employees are liable to pay gratuity. S.1(3) of the Central Act reads as follows:

(3.) The question regarding application of Kerala Act after enactment of the Central Act is to be answered first. The constitutional validity of the Kerala Act was challenged before this Court and a Full Bench of this Court in V.N.Sunder and others v. State of Kerala and others ( 1975 KLT 867 (FB)) held as follows: