EXECUTIVE OFFICER Vs. RAMA NAIK

JUDGEMENT

(1.) THE persons who have approached this Court in these proceedings being to the lower strata of the society. They seek social justice They claimed paltry amounts of gratuity. The employer is none else than Puri Municipality, The claims of the opposite parties were denied by the Municipality on the ground that the Payment of Gratuity Act, 1972, (shortly 'the Act') has no application to it. This claim has not been sustained either by the Controlling Authority under the Act or the Appellate Authority. The claim was nonetheless advanced on the ground that the notification issued by the Central Government, as contemplated by Section 1(3)(c) of the Act specifying the local bodies' in which ten or more persons are employed, or were employed, on any day of the preceding twelve months, as a class of establishment to which the Act shall apply, had come into force with effect from 23rd January, 1982 whereas the gratuity had become payable in these cases some time in seventies. The two authorities below have, however, held that the municipal authorities would tome within the purview of Clause (b) of Section 1(3) of the Act and because of this, the contention of the petitioner has been rejected.

(2.) CLAUSE (b) takes within its sweep '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 twelve months'. The Apex Court of the land had occasion in State of Punjab v; Labour Court, AIR 1379 SC 1981, to examine the width and scope of this clause. In that case, the dispute was whether any establishment within the purview of the Payment of Wages Act, 1936 would come within the fold of Clause (b). 1 he Court observed ; , , 'it. is urged for the appellant that the Payment of Wages Act is not an enactment contemplated by Section 1(3)(b) of the Payment of Gratuity Act.. The Payment of Wages Act, it is pointed out, is a central enactment and Section 1(3)(b) it. is said refers to a law enacted by the State Legislature. We are unable to accept the contention. Section 1(3)(b) speaks of 'any law for the time being in force in relation to shops and establishments in a State'. There can be no dispute that the Payment of Wages Act is in force in the State of Punjab. Then, it is submitted, the Payment of Wages Act is not a law in relation to 'shops and establishments'. As to that, the Payment of Wages Act is a statute which, while it may not relate to shops, relates to a class of establishments that is to say, industrial establishments. But, it is contended, the law referred to Under Section 1(3)(b) must be a law which relates to both shops and establishments, such as the Punjab Shops &. Commercial Establishments Act, '1958. It is difficult to accept that contention because there is no warrant for so limiting the meaning of the, expression of law' in Section 1(3)(b). The expression is comprehensive in its scope, and can mean a law in relation to shops as well as .,separately, a law in relation to establishments, or a Iaw in relation . to shops and commercial establishments and a law in relation to non -commercial establishmets ... Being of this view, it was held that, if a concern would be an establishment within the purview of Payment of Wages Act, the same would be an establishment as understood by Clause (b).'

(3.) IN Municipal Board v. Appellate Authority and Addl. L. C. 1986 (53) F. L. R. 227, a learned Single judge of Allahabad High Court, .had an opportunity to refer to the sweep of the expression 'establishment' as finding place in Clause (b). Reference was made to the definition of the word 'establishment' as finding place in the Black's Law Dictionary where in it has been defined as' 'place of business, public institution'. The meaning was thus held to be very wide. The objective of the Act being to have some benefit to retired employees and the same being a part of social justice, it was held that the legislation was to be applied liberally and given a wider meaning. We are in respectful agreement with the views expressed in this case.