JOGINDRA LAL MALAKAR Vs. REGIONL LABOUR OMMISSIONER CENTRAL

JUDGEMENT

(1.) A short but very interesting question of law arises for consideration in the present Rule. The petitioner Jogendra Lal Malakar joined the services of Macneill and Co. on the 1st March, 1932 as a clerk. It may be mentioned that this company by virtue of successive amalgamations is now known as Macneill and Magor Ltd.

(2.) IN April, 1972 the petitioner was drawing a total salary of Rs. 1,040. On the 16th September, 1972 the Payment of Gratuity Act, 1972 (hereinafter referred to as the Act) came into force. On the 1st March, 1973 the petitioner retired after 41 years of service. His last pay drawn was Rs. 1,045 per month.

(3.) THEREAFTER the petitioner made a claim before the company for payment of gratuity under the provisions of the Act. The company contended that no gratuity was payable to the petitioner for reasons which are not necessary to go into at this stage. Thereafter the petitioner applied before the Controlling Authority under the Act for payment of gratuity to him. By its order dated the 26th March, 1975 the Controlling Authority directed the company to pay gratuity to the petitioner. From the aforesaid order, the company went up on appeal before the appellate Authority appointed under the Act. The Appellate Authority by its order set aside the decision of the Controlling Authority and held that no gratuity was payable to the petitioner. The basis of the decision of the Appellate Authority was that the petitioner was not an "employee" as defined in S. 2 (e) of the Act and as such was not entitled to any gratuity.