WESTERN COAL FIELDS LIMITED Vs. HARBANSLAL VAID

JUDGEMENT

(1.) HARBANSLAL Vaid (respondent No. 1 in this petition) was employed by M/s. Newton Chikli Collieries Ltd. Parasia (respondent No. 2) as Chief Accountant of the Newton Chickli Colliery. Under the Coal Mines (Nationalisation) Act, 1973, the Newton Chickli Colliery like other collieries, was nationalised and taken over by the Central Government under Section 3 of the Act with effect from 1st May, 1973 which is the "appointed day" under the Act. By letter dated 12th October, 1973, Vaid applied for extension of service. Vaid was granted extension upto 31st January, 1974 when his services stood terminated. Vaid then applied to the Assistant Labour Commissioner, who is the Controlling Authority under Section 3 of the Payment of Gratuity Act, 1972, for payment of gratuity. It was contended by M/s. Western Coal fields Ltd. the Government company in which the right, title and interest of the owner in the Newton Chickli Colliery now vest under Section 5 of the Nationalisation Act, that the gratuity was payable by the previous owner, i. e. , M/s. Newton Chickli Collieries Ltd. and not by the Central Government or the Government company. The Assistant Labour Commissioner decided this contention against M/s. Western Coalfields Ltd. by order dated 7th December, 1975. There was an appeal by M/s Western Coalfields Ltd. under Section 7 of the Gratuity Act which was dismissed by order dated 17th August, 1976 by the Regional Labour Commissioner. By this petition under Article 226 of the Constitution, M/s. Western Coalifields Ltd. challenge the aforesaid orders of the Assistant Labour Commissioner and the Regional Labour Commissioner.

(2.) THE contention raised by the learned Counsel for the petitioner is that having regard to Sections 7 (2) and 14 (5) of the Nationalisation Act, the gratuity is payable not by the Central Government or the petitioner but by the previous owner of the colliery, i. e. , M/s. Newton Chickli Collieries Ltd. It is also contended that as the respondent had completed the age of 58 years before the appointed day, he had already superannuated and the gratuity had become due before the nationalisation.

(3.) SECTION 2 (r) of the Payment of Gratuity Act, 1972, defines "superannuation", in relation to an employee to mean--" (i) the attainment by the employee of such age as is fixed in the contract or conditions of service as the age on the attainment of which the employee shall vacate the employment; and (ii) in any other case, the attainement by the employee of the age of fifty-eight years". The liability for payment of gratuity arises under Section 4 of the Act. The relevant part of Section 4 provides that "gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years,-- (a) on his superannuation, or (b) on his retirement or resignation, or (c) on his death or disablement due to accident or disease.