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Head Office and branches in many states in India - whether the appropriate government with regard to Payment of Gratuity Act 1972 is Central Government? - CiteHR

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VINCENT ALEX
One Finance Institution has Head Office and Branches in Kerala, they have also branches in many states in India.
My query is whether the appropriate government with regard to Payment of Gratuity Act 1972 is Central Government. The definition section 2(a)(i)(b) states it is Central Government. However one of the Controlling Authority in Kerala remarked that some of the Court Judgment is against it. So I want some of the court Judgement stating the shop and commercial establishment having branches all over India, the appropriate government is Central Government. Please give a clarification and Court Judgments.

From India, Kottayam
PRABHAT RANJAN MOHANTY
535

The appropriate Govt would be respective State government where the branch is existing. The appropriate Govt is Central, if the firm belongs to central Govt.
From India, Mumbai
umakanthan53
5967

Dear Vincent,

I think that your query is simply based on the threadbare remarks of a Controlling Authority under the P.G Act,1972 and of course the burden of the citation of the case law and how far its ratio decidendi conforms to his observation rests with him only.

In this connection, you may refer to section 2 (a) of the Payment of Gratuity Act,1972 which defines the term " appropriate Government " in conjunction with the application aspect of the Act u/s 1 (3).

As per part (i)(b) of clause (a) of section 2, in relation to an establishment having branches in more than one State, the Central Government is the appropriate Government. The language employed herein is very simple as it is only indicative of the entity other those mentioned in sub-clauses (a),(c) and (d).

Here, it is very pertinent to note that factory, mine, oilfield, plantation, port and railway company mentioned in clause (a) of sec. 1(3) of the Act have been categorically defined subsequently under clauses (g), (j), (l), (m), (n) and (p) respectively of section 2 of the Act whereas the term "establishment " used repeatedly in the same sec.1 has not been defined.

Thus, the definition of sec.2(a)(i) makes a distinction between establishments and the other entities including factories. Here, I would like to quote the following observation of the hon'ble Supreme Court in its judgment in JEEVANLAL Ltd v APPELLATE AUTHORITY [ (1984) 4 SCC 356 ] :

" The Central Govt is the appropriate Govt only in relation to an establishment having branches in more than one State. But there is no like provision in relation to such an establishment having factories in different States.

Where a company has its registered and Head Office in a State and branch offices, sales offices and factories in that State as well as other States, the controlling authority appointed by the State Govt in another State would have jurisdiction over employees working in an office attached to a factory situated in that State as such an office would be an adjunct of the factory located in that State."

I think that the particular learned controlling authority of Kerala you mentioned would have this case law in his mind while passing such a remark.

But, in as much as the Finance Institution you mentioned is only an establishment registered in Kerala and having branches in Kerala as well as many other States is not a factory, certainly the Central Government is the appropriate Government as per Sec. 2(a)(i)(b).

From India, Salem
ssushr
23

In Kerala One controlling Authority under Payment of Gratuity having office in Ernakulam having jurisdiction from Ernakulam to Kasargod and Palakkad. Another Controlling Authoity is having office in Thiruvananthpuram having jurisdiction for rest of kerala. Cases of All Shops and establishments having branches in more than one state are being heard in the above offices. Pl file cases of the claimant in the appropriate office considering the last place of work of the employee.
From India, Pune
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