SUNNI MUSLIM WAKF COMMITTEE Vs. ABBASALI GULAMALI

JUDGEMENT

(1.) Sunni Muslim Wakf Committee which is a trust registered under the Bombay Public Trusts Act. 1950 has through its members filed allthese petitions which arise out of the applications made by its employees under the Payment of Gratuity Act 1972 Respondent in Special Civil Application No. 3618 of 1979 was the accountant appointed by the committee. He joined service on 1st September 1967 and left it on 30 September 1973. Respondent in Special Civil Application No. 3619 of 1979 was the Secretary of the committee. He joined service on 6th November 1969 and left it on 31st January 1977. Respondent in Special Civil Application No. 3620 of 1979 was a peon employed by the committee on 26th April 1970 and left it on 30th April 1977. Respondent in Special Civil Application No. 3621 of 1979 was the Superintendent employed by the committee for a Hostel which it is running. He joined service on 4 October 1967 and left it on 1st June 1976. All these respondents are hereinafter referred to as workmen. The workmen made applications to the Controlling Authority under the Act claiming gratuity from the petitioner. The petitioner resisted the claims made by the workmen. The principal contention which was raised by the petitioner was that the provisions of the Payment of Gratuity Act 1972 were not applicable to it and that therefore it was under no liability to pay gratuity to the workmen. The Controlling Authority recorded its finding against the petitioner and allowed the claims made by the workmen. The petitioner appealed against the orders made by the Controlling Authority to the Appellate Authority. The Appellate Authority relying upon the decision of the Supreme Court in Bangalore Water Supply and Sewerage Board v. A. Rajappa and Others AIR 1978 S.C. 548 dismissed the appeals. It is those four appellate orders which have given rise to these four petitions.

(2.) The only contention which Mr. Nanavaty has raised before us is this:- Whether the provisions of the Payment of Gratuity Act 1972 apply to the petitioner committee. It is running Sultan Ahmed Technical Institute which has a strength of 331 students. They learn there tailoring and cutting tailoring and cutting of womens and childrens garments embroidery and fancy work master tailors work wiremens work and apprentice course. The second activity of the petitioner committee is to run a training institute for imparting practical education to women. About 50 lady students are taking advantage of that institution. The petitioner committee also runs hostels and about 80 students are taking advantage of the hostel accommodation. Nest the committee runs orphanages. About 100 orphans take advantage of those orphanages. The committee next manages Nawab Sujat Hall. Lastly it disburses every year scholarships to students amounting to about Rs. 50 0 The total strength of the staff employed by the petitioner committee is in the neighborhood of 175 persons. Its annual income is about Rs. 7 0 0 The principal source of income is rent.

(3.) Bearing these activities of the petitioner committee in mind let us now examine whether the provisions of the Payment of Gratuity Act 1972 apply to the petitioner committee. Sec. 1(3) provides for application of the Act. It reads as under:-