LAWS(MAD)-1987-3-32

COIMBATORE DISTRICT TEXTILE WORKERS UNION (REPRESENTED BY ITS GENERAL SECRETARY, COIMBATORE) Vs. SREE MEENAXSHI MILLS, LTD. (REPRESENTED BY ITS EXECUTIVE DIRECTOR, V. G. MAHESWARI), MADURAI

Decided On March 11, 1987
Coimbatore District Textile Workers Union (Represented By Its General Secretary, Coimbatore) Appellant
V/S
Sree Meenaxshi Mills, Ltd. (Represented By Its Executive Director, V. G. Maheswari), Madurai Respondents

JUDGEMENT

(1.) Two questions arise for consideration in these cases. While one relates to the scope of the retrospective operation of S. 2A of the Payment of Gratuity Act, 1972, the other relates to the constitutional validity of a part of the said section.

(2.) The Payment of Gratuity Act, hereinafter called the Act, was enacted by the Parliament to introduce a scheme for payment of gratuity for certain industrial and commercial establishments as a measure of social security. The intention of the Legislature was not only to achieve uniformity and reasonable degree of certainty, but also to create and bring into force a self contained and complete code relating to gratuity. Before the passing of the Act, there was no Central law dealing with the subject except the Working Journalists (Conditions of Service) and Miscellaneous Provisions Act, 1955. Legislations were made in Kerala and West Bengal in 1971 for payment of gratuity to workers employed in factories, plantations, shops and establishments. Apart from that, gratuity was being paid by some employers under agreements and awards. The need for a Central law on the subject was realised and the Act was passed in 1972 governing factories, mines, oil-fields, plantations, ports, railway companies, shops or other establishments in the matter of payment of gratuity and matters connected therewith or incidental thereto. It is not necessary for us to refer to the provisions of the Act in detail herein as the controversy in this case revolves round the definition of "continuous service" introduced by an amendment of the Act in 1984.

(3.) Originally, the term "continuous service" was defined by S. 2(c) of the Act as uninterrupted service including service interrupted by sickness, accident, leave, layoff, strike or a lockout or cessation of work not due to the fault of employee concerned, whether such uninterrupted or interrupted service was rendered before or after the commencement of the Act. The section contained two explanations as follows :