MADHUSOODANAN NAIR Vs. STATE OF KERALA

JUDGEMENT

(1.) As is now fairly well known, the Payment of Gratuity Act, 1972 provides that its provisions will apply to an establishment that has employed or is employing ten or more employees. Within the confines of this statutory stipulation, the petitioner herein asserts that since the establishment involved in this case, which is a Co-operative Society, is authorised to appoint twenty eight employees as per its approved Feeder Category Sub Rules, they must be construed to be within the rigour of the afore Act even if they have employed less than ten employees.

(2.) Thus, it its crux, the petitioner predicates that since the approved Feeder Category Sub Rules provides for twenty eight posts in their services, it is this number which is relevant in considering whether the Payment of Gratuity Act applies since this is the de jure number of employees and not the number of employees de facto engaged.

(3.) I will proceed to deal with this contention in detail, after I narrate the facts involved compendiously.