AIR 1979 SUPREME COURT 1981 ::1980 (1) SCC 4 ::1979 UJ (SC) 878 ::1979 39 FacLR 353 ::1979 55 FJR 469 ::(1979) 55 FJR 468 ::1980 (1) LabLN 39 ::(1980) 1 Lab LN 39

Supreme Court Of India

(From : Punjab and Haryana)*

Hon'ble Judge(s): V. R. Krishna Iyer, R. S. Pathak , JJ

(A) Payment of Gratuity Act (39 of 1972) , S.1(3)— Payment of Wages Act (4 of 1936) , S.2(ii)(g)— Hydel Upper Bari Doab Construction Project is an establishment - Payment of Gratuity Act applies to it. S. 1 (3) (b) of Payment of Gratuity Act applies to every establishment within the meaning of any law for the time being in force in relation to establishments in a State. Such an establishment would include an industrial establishment within the meaning of S. 2 (ii) (g) of the Payment of Wages Act. Thus the Hydel Upper Bari Doab Construction Project is such an establishment, and the Payment of Gratuity Act applies to it(Para 3) (B) Payment of Gratuity Act (39 of 1972) , S.4(1)(b)— Retirement - Retrenchment is a termination of service and falls within the scope of S. 4 (1). The definition in S. 4 (1) is framed in the widest terms. Except for superannuation, any termination of service would amount to 'retirement' for the purpose of the Act. Retrenchment is a termination of service. It is immaterial that the termination is occasioned by the need to discharge surplus labour. Hence the retrenchment of the employee falls within the scope of S. 4 (1) of the Payment of Gratuity Act, and the employees are therefore entitled to gratuity under that provis....