THE MANAGEMENT OF SPENCER & CO. LTD., MADRAS Vs. THE APPELLATE AUTHORITY UNDER THE PAYMENT OF GRATUITY ACT, REGIONAL COMMISSIONER OF LABOUR CENTRAL, MADRAS,

JUDGEMENT

(1.) THIS writ appeal is directed against the judgment of the learned single Judge whereby the learned single Judge dismissed the writ petition filed by the petitioner against the orders of the appellate authority under the Payment of Gratuity Act whereby the said appellate authority had confirmed the orders of the controlling authority wherein the workman was granted the gratuity, calculating the maximum gratuity period of twenty months at the rate of 30 days per month, i.e. for 600 days.

(2.) IT is an admitted case that the last drawn monthly salary of the 3rd respondent -employee was Rs.1,345/ -. On that basis, the total gratuity granted by the Controlling Authority was Rs.31,038.46. However, according to the employer, the total gratuity payable was only Rs.26,900/ -, which was paid to the employee. The employee, feeling dissatisfied by this payment, approached the Controlling Authority, who awarded the enhanced gratuity at Rs.31,038.46.

(3.) LEARNED counsel for the appellant suggests that all the authorities below were in error in making the calculation as, according to him, the maximum gratuity payable was limited by Sec.4(3) of the Act as it stood then, and, therefore, applying that section, the maximum gratuity payable was for twenty months. Even if as per Sec.4(2) of the Act more amount became payable, applying the formula given under Sec.4(2), he pointed out that, the salary being Rs.1,345/ - per month, the maximum gratuity payable was twenty months' salary and the total amount of gratuity would come to Rs.26,900/ -. Therefore, even on the basis of the long service rendered by the employee, the gratuity amount cannot be more than the twenty months' salary and it will be only that amount which will be payable and that cannot exceed Rs.26,900/ -.