BAKSHISH SINGH UNION OF INDIA Vs. DARSHAN ENGINEERING WORKS:DARSHAN ENGINEERING WORKS
LAWS(SC)-1993-10-116
SUPREME COURT OF INDIA (FROM: PUNJAB & HARYANA)
Decided on October 11,1993

UNION OF INDIA,BAKSHISH SINGH Appellant
VERSUS
DARSHAN ENGINEERING WORKS Respondents

JUDGEMENT

Sawant, J. - (1.) These two appeals - one by the Union of India and the other by the aggrieved employee - are directed against the decision dated 24th March, 1983 of the Punjab and Haryana High Court whereby the High Court has struck down Section 4(l)(b) of the Payment of Gratuity Act, 1972 [hereinafter referred to as the 'Act'] as being violative of Article 19(l)(g) of the Constitution of India.
(2.) The admitted factual matrix of the case is in a narrow compass. Bakshish Singh, the appellant-employee joined the services of the respondent-M/s. Darshan Engineering Works as a Fitter on 2nd March, 1968 and resigned from service on 10th December, 1978 after a total period of continuous service of more than 10 years. His last drawn wages were Rs. 335/- per month. It is not disputed that at the time he joined the employment on 2nd March, 1968, his age was 54 years 3 months, his date of birth being 17th December, 1913. This was known to the respondent-employer.
(3.) The Act came into force w.e.f. 21st September, 1972. On the employee's resignation w.e.f. 10th December, 1978 which was accepted by the respondent-employer, he claimed gratuity under Section 4(1)(b) of the Act. His claim not having been accepted, he approached the Controlling Authority under Section 7 of the Act. The claim was resisted by the employer on the ground firstly that the employee was entitled to gratuity only till the date he reached his superannuation age which was 58 years and since he had not completed 5 years of service by the time he attained 58 years of age, he was not entitled to gratuity under Section 4(1) of the Act. Secondly, it was contended that in any case the amount of gratuity payable to the employee was only for the period up to the superannuation age and since he was drawing wages of Rs. 230/- per month on the day he attained the superannuation age, he was entitled to a sum of Rs. 460/- only, being the gratuity calculated at the rate of 15 days' salary per year of service till the date of superannuation.;


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