LAXMI D Vs. A P AGRICULTURAL UNIVERSITY

JUDGEMENT

(1.) The sole question that arises for consideration in the writ appeal and the batch of writ petitions is as to whether the respondent-University is an "establishment" within the meaning of the provisions of the Payment of Gratuity Act, 1972.

(2.) The Payment of Gratuity Act, 1972(for short "the Act"), was enacted to provide for a scheme for payment of gratuity to employees engaged in factories, mines, oil-fields, plantations, ports, railway companies, shops or other establishments and for matters connected therewith or incidental thereto. The Act applies to the whole of India. In terms of Clause (b) of sub-section (3) of Section 1 of the Act, the Act is made applicable to every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which ten or more persons are employed, or were employed, on any day of the preceding 12 months.

(3.) The fact that the respondent-University carried on an organised and systematic activity by employing ten or more persons on any day of the preceding 12 months is not in dispute. The respondent-University, in the writ petition, inter alia, contended that since it is an educational institution, the provisions of the Act are not applicable. It further contended that since the concerned workmen were daily rated workers, they did not satisfy even the prerequisites of an employee.