THE MANAGEMENT, THIRU AROORAN SUGARS LIMITED Vs. THE APPELLATE AUTHORITY UNDER THE PAYMENT OF GRATUITY ACT AND ORS.

JUDGEMENT

(1.) The question that falls for decision in this writ petition is whether an employee, who is permanently employed throughout the year in a seasonal establishment will be entitled to payment of gratuity at the rate of 15 days wages for every completed year of service as provided in Sec. 4(2) of the Payment of Gratuity Act, 1972 (hereinafter referred to as the Act) or at the rate of seven days wages for each season as provided for in the second proviso to Sec. 4(2) of the Act.

(2.) The background of the cases may be stated thus? The Petitioner, Thiru Arooran Sugars Limited, Vadapathimangalam, Thanjavur owns a sugar factory. Admittedly, the sugar factory is a seasonal establishment. The third Respondent, Lingam Pillai, was working as a compounder from 22nd October, 1955 in the Petitioner's sugar factory. He was superannuated from service on 17th March, 1975. The Petitioner paid him gratuity at the rate of seven days wages for every completed year of service as per the second proviso to Sec. 4(2) of the Act. The third Respondent claimed gratuity at the rate of 15 days wages in terms of Sec. 4(2) of the Act. The Petitioner having refused to admit the claim of the third Respondent, the third Respondent moved the Controlling Authority under the Act under Rule 10(1) of the Tamil Nadu Payment of Gratuity Rules, 1973. The Controlling Authority found that the third Respondent would be entitled to gratuity at the rate of 15 days wages for every completed year of service. Against the order of the Controlling Authority the Petitioner preferred Appeal No. 3 of 1976. The Appellate -Authority by its order, dated 22nd October, 1977 dismissed the appeal. In these circumstances the Petitioner has filed this writ petition for the issue of a writ of certiorari to quash the order of the controlling authority as confirmed by the order of the appellate authority.

(3.) The contention of Mr. M.R. Narayanaswami the learned Counsel for the Petitioner, is that the second proviso, to Sec. 4(2) of the Act provides that in the case of an employee employed, in a seasonal establishment, the employer need pay the gratuity at the rate of seven days wages for each season. Since, admittedly, the Petitioner's factory is a seasonal establishment, the third Respondent will be entitled to gratuity only at the rate of seven days wages for every completed year of service.