SARABHAI CHEMICALS LTD Vs. AMBARAM AMTHARAM PATEL

JUDGEMENT

(1.) The petitioner herein is the company registered under the Indian Companies Act and is engaged in the business of manufacturing chemicals and pharmaceutical. By this petition it has prayed for a writ for quashing aside the orders passed by the Controlling Authority as well as the appellate authority under the Payment of Gratuity Act 1972 (which is hereinafter referred to as the Act) directing it to pay a sum of Rs. 6720.00 as gratuity to the respondent.

(2.) Short facts which form the background of this case are that the respondent Ambaram Amtharam Patel joined the services of the petitioner Company at Baroda on 13th November 1959 as Chemist. He worked as Chemist from the year 1959 to 1973. On 1st January 1974 he was appointed as the Section Head of the Quality Control department. His pay upto 31st March 1974 was Rs. 960.00 per month but from 1st April 1974 he was getting the salary of Rs. 1050.00 per month. In the meanwhile i.e. on 16 September 1972 when he was still working as Chemist and receiving salary below Rs. 1000.00 per mensem the Act came into force. Ultimately on 29th June 1974 the respondent resigned.

(3.) On his resignation he was not paid any amount of gratuity under the Act. He therefore applied to the Controlling Authority Baroda for the payment of gratuity. The said authority found that he was entitled to the gratuity amount of Rs. 6720.00 which was calculated for the period upto 31st March 1974 when he was getting the salary of Rs. 960.00. per mensem. Being aggrieved by this decision the petitioner approached the appellate authority established under the provisions of the Act. The said appellate authority confirmed the order of the Controlling Authority as regards gratuity. Hence the petitioner company has preferred this. Special Civil Application.