SUPER FASTNER COR Vs. SHASHIKANT SALUNKE

JUDGEMENT

(1.) A complaint under Item 1 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 was filed by Mr. Shyamrao Salunke who, it is admitted ground, had worked with the Petitioner as a hand cart puller -cum -helper for 30 years between 1969 and 1999. According to the employer the workman did not report for work while according to the workman he was unlawfully terminated in 1999. On this aspect no more need be said since the complaint is pending and the issues that arise therein will be decided on merits by the Labour Court. During the pendency of the complaint before the Labour Court, the workman expired on 13th June, 2002 and is survived by his widow and sons. The legal representatives have been brought on record on 17th July, 2002. An application was moved before the Labour Court for a direction to the employer to deposit the legal dues of the deceased workman since his heirs were facing economic starvation. The application was rejected by the Labour Court on 1 st January, 2003. In revision, the Industrial Court by its order dated 17th April, 2004 directed the employer to deposit the amount due and payable by way of gratuity by making the appropriate computation as of the end of April, 1999. Permission has been granted to the legal representatives to withdraw the amount upon deposit.

(2.) ON behalf of the employer, it has been sought to be asserted that the employer was under no legal obligation to pay any amount by way of gratuity; that the Payment of Gratuity Act, 1972 is not applicable and that the Industrial Court has no jurisdiction to issue such a direction. During the course of hearing, counsel appearing on behalf of the Respondent has placed on the record a compilation of documents including a circular issued by Nagdevi Merchants ' Associations on 7th September, 1998 to its constituents including the Mill Gin Stores Merchants Association. The circular refers to an arbitration award of Shri K.M. Desai which was thereafter the subject matter of a challenge before this Court and which culminated in a judgment of Mr. Justice A.P. Shah. Counsel appearing on behalf of the Respondent has placed on the record a copy of the Consent Terms which were arrived at before this Court on 17th August, 1998 as well as the circular dated 7th September, 1998 of Nagdevi Merchants ' Associations. In so far as is material the circular makes the following provisions in regard to the payment of gratuity: