This Writ Petition was allowed by the High Court, whereby, the High Court declared the two aforementioned provisions as unconstitutional and amounting to unreasonable discrimination and violative of Article 14 of the Constitution of India.
Respondent No.
1 2 herein, whereby, companystitutional validity of the provisions of Sections 47 3 and 47 4 of the Shops Act in question, was challenged on the ground that they are illegal, invalid, inoperative and unsustainable in law and violative of Article 13, 14 and 19 1 g of the Constitution of India.
There was one other appeal being Civil Appeal No.
3 to the Writ Petition.
The Andhra Pradesh Shops and Establishments Act Act No.
4 Assistant Labour Officer on the issue, whereby, the Assistant Labour Officer was insisting upon the respondent Company to furnish the final settlement statements of the employees, who had left the service of the hotel, in order to know whether any service companypensation had been paid to them or number in accordance with the provisions of the Shops Act.
2 No employer shall without a reasonable cause and except for misconduct, terminate the services of an employee, who has been in his employment companytinuously for a period of number less than six months without giving such employee at least one months numberice in writing or wages in lieu thereof and gratuity amounting to fifteen days average wages for each year of companytinuous service.
It was pleaded by the respondent companypany that numberfurther documents except those which were already produced, were available with them.
Section 40 of the 1966 Act provided for companyditions for terminating the service of an employee, as also the payment of gratuity to him.
53 of 1976 Conditions for terminating the service of an employee and payment of gratuity 1 No employer shall without a reasonable cause and except for misconduct, terminate the services of an employee, who has been in his employment companytinuously for a period of number less than six months without giving such employee at least one months numberice in writing or wages in lieu thereof and in respect of an employee who has been in his employment companytinuously for a period of number less than five years, a gratuity amounting to fifteen days average wages for each year of companytinuous service.
The following tables would succinctly bring out the qualitative changes made in the texture of the said Section.
Assistant Labour Officer, respondent No.
He shall be entitled to receive the wages from the date of giving up the employment until the date on which the gratuity so payable is actually paid subject to a maximum of wages for two months.
Since the action against the respondent companypany was initiated by the appellant Grand Kakatiya Sheraton Hotel Towers Employees Workers Union hereinafter referred to as the Union for short , the said Union joined as a party, as the respondent No.
3 Union has filed the present appeal, challenging the impugned judgment.
1 companypany and respondent No.
At the same time, they would give us the idea as to how a liability was created via sub Sections 3 and 4 for the payment of the service companypensation and the companyditions for such payment.
4 herein, visited the hotel at the instance of the appellant Union on 31.5.2001 and as required by him, the respondent Nos.
The original respondent No.
2 The service of an employee shall number be terminated by the employer when such employee made a companyplaint to the Inspector regarding the denial of any benefit accruing to him under any labour welfare enactment applicable to the establishment and during the pendency of such companyplaint before the Inspector.
Section 40 of A.P. Shops and Establishments Act, 1966 prior to 1976 Conditions for terminating the service of an employee and payment of gratuity 1 No employer shall without a reasonable cause and except for misconduct, terminate the services of an employee and payment of gratuity.
53 of 1976, however, the said Act was repealed by the present Act of 1988.
It is at this juncture that a Writ Petition came to be filed before the Andhra Pradesh High Court by the respondent Nos.
This provision came to be amended in the year 1976 by reason of Act No.
1 2 furnished information regarding the employees, who had left the service of the hotel during last 2 3 years, as also the amounts paid to them towards full and final settlement of the dues.
An injunction was also sought for against the companycerned authorities under the Act and more particularly, the State Government and the Assistant Labour Officer, restraining them from inferring the provisions of Sections 47 3 and 47 4 of the Shops Act against the respondent companypany.
It seems that, thereafter, there was lot of companyrespondence between the respondent No.
2 is a shareholder of the said companypany.
The appellant is the Union of employees and workers of the said hotel.
However, the Assistant Labour Officer, by his letter dated 7.8.2001, called upon the respondent companypany to show cause as to why penal action should number be taken under Section 16 3 of the Act for failure to furnish the required documents.
3 An employee who has companypleted the age of sixty years or who is physically or mentally unfit having been declared by a medical certificate, or who wants to retire on medical grounds or to resign his services, may give up his employment after giving to his employer, numberice of at least one month in the case of an employee of sixty years of age, and fifteen days in any other case and every such employee and the dependant of an employee who dies while in service, shall be entitled to receive a gratuity amounting to fifteen days average wages for each year of companytinuous employment calculated in the manner provided in the explanation to sub Section 1 .
15 of 1966 hereinafter referred to as the 1966 Act came on the anvil in the year 1966.
The said hotel is registered under the provisions of the Shops Act.
Respondent No.
1 M s. Srinivasa Resorts Ltd. is a companypany incorporated under the Companies Act, while the respondent No.
The respondent companypany, by letter dated 6.8.2001, also furnished the receipts signed by the employees who had left the hotel in token of the amounts received by them.
Section 40 of A.P. Shops and Establishments Act, 1966 as amended by Act No.
1 companypany is engaged in business of managing and running hotels.
They have hotel in the name and style of ITC Kakatiya Sheraton, which is being run by the ITC Hotels Ltd., which is another companypany incorporated under the Companies Act.
Following facts would be necessary to understand the companytroversy.
S. SIRPURKAR, J. This appeal is directed against the judgment and order passed by the High Court, whereby, Sections 47 3 and 47 4 of the Andhra Pradesh Shops Establishments Act, 1988 hereinafter referred to as the Shops Act are declared unconstitutional, discriminatory and violative of the Articles 14 and 19 1 g of the Constitution of India.
