ORDER V. K. Mehrotra, J. - The short question which arises for determination in this petition under Article 226 of the Constitution is whether Uttam Chand, an employee of the petitioner who had attained the age of superannuation prior to Sept. 16, 1972 was entitled to claim gratuity under the provisions of the Payment of Gratuity Act, 1972 (Parliament Act No. 39 of 1972) (for brief, the Act). It arises in these circumstances: Uttam Chand, the third respondent in the petition, was employed with the petitioner-Mill as Boiler Attendant since April 1, 1929. He attained the age of 60 years on Mar. 31, 1972. He, however, continued to work with the petitioner till Mar. 31, 1974. At that time he was drawing a sum of Rs. 550/- per month. According to the third respondent, he was superannuated on Mar. 31, 1974. The case of the petitioner is that he superannuated in Mar., 1972 and at that time he was drawing a sum of Rs. 422.20 per month as wages. The case of the petitioner also is that through a notice dated Feb. 26, 1972, respondent 3 was informed that on reaching the age of superannuation, namely, 60 years, on Mar. 31, 1972, as per the Government Order dated 27-11-1970 enforcing the recommendations of the Second Wage Board for the sugar industry, he shall stand retired from service with effect from that date. Respondent 3 was also paid all amounts due to him including the amount of gratuity in terms of the gratuity scheme applicable to him under the recommendations of the Second Wage Board for Sugar Industries, 1970, enforced under S. 3, U. P. Industrial Disputes Act. While the petitioner was looking for a proper person to be appointed as Boiler Attendant in place of respondent 3, the latter was, at his request, reemployed with effect from Apr. 1, 1972 and his name was shown in "Temporary Pay Roll Register" which had been maintained for temporary employment. This fact was also acknowledged by respondent 3 through his letter on Aug. 3, 1972. 2. The case of respondent 3 is that he was not superannuated with effect from March 31, 1972 but continued to work with the petitioner and was actually retired with effect from Mar. 31, 1974. This fact was also acknowledged by respondent 3 through his letter on Aug. 3, 1972. 2. The case of respondent 3 is that he was not superannuated with effect from March 31, 1972 but continued to work with the petitioner and was actually retired with effect from Mar. 31, 1974. Since the petitioner had not paid to him the entire amount of gratuity due under the Act and had made part payment thereof, an application dated June 11, 1976 was made by respondent 3 to the Controlling Authority envisaged by the Act for the payment of the balance amount. The Controlling Authority, after giving opportunity to the petitioner to have its say directed it by its order dated Oct. 19, 1979 (annexure `6' to the writ petition) to pay the balance amount of gratuity to respondent 3. This direction was upheld by the Appellate Authority, before which it had been assailed by the petitioner, by order dated Apr. 14, 1977. Both the authorities took the view that respondent 3 was retired with effect from Mar. 31, 1974. The notice sent by the petitioner to respondent 3 was treated by the Controlling Authority only as an intimation by the petitioner that respondent 3 would attain the age of 60 years on Mar. 31, 1972 and that he would, therefore, be retired with effect from that date and not as an actual order retiring him. 3. It is not in dispute that the age of superannuation for respondent 3 was 60 years. The petitioner said so in para 2 of the petition. Respondent 3 acknowledged it in para 1 (n) of his reply to the written statement of the petitioner in proceedings before the Controlling Authority. A copy of that reply is annexure `5' to the writ petition. The assertion in para 1 (n) is that as defined in S. 2 (r) (i) of the Act, superannuation meant the attainment by the employee of such age as was fixed in the conditions of service on which the employee would vacate the employment and that under the conditions of service applicable in sugar factories that age was 60 years. There is also no dispute that respondent 3 attained the age of 60 years on Mar. 31, 1972. 4. "Gratuity is a lump sum payment.......... There is also no dispute that respondent 3 attained the age of 60 years on Mar. 31, 1972. 4. "Gratuity is a lump sum payment.......... considered necessary for an "orderly and humane elimination" from industry of superannuated or disabled employees who, but for such retiring benefits, would continue in employment even though they function inefficiently. The voluntary retirement of an inefficient or old or worn out employee on the assurance that he is to get a retiral benefit leads to the avoidance of industrial disputes, promotes contentment among those who look for promotions, draws better kind of employees and improves the tone and morale of the industry. It is beneficial all round. It compensates the employee who, as he grows old, knows that some compensation for the gradual destruction of his wage earning capacity is being built up (See Burhanpur Tapti Mills Ltd. v. Burhanpur Tapti Mills Mazdoor Sangh, AIR 1965 SC 839 ). 4A. "Gratuity paid to workmen is intended to help them after retirement whether the retirement is result of rules of superannuation or physical disability. The general principle is that by their length of service workmen are entitled to claim a certain amount as a retiral benefit. (See Indian Hume Pipe Co. v. Workmen, AIR 1960 SC 251 ). 5. The Act, as is clear from its preamble, was passed "to provide for a scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments and for matters connected therewith or incidental thereto. One of its object was to ensure a uniform pattern of payment of gratuity to the employees throughout the country. It extends to the whole of India and applies, inter alia, to every factory. It came into force on Sept. 16, 1972 as notified by the Central Government under section 1 (4). Its relevant provisions may now be read. Under S. 2 (q) "retirement" means termination of the service of an employee otherwise than on superannuation. Section 2 (r) defines "superannuation", in relation to an employee, to mean (i) the attainment by the employee of such age as is fixed in the contract or conditions of service as the age on the attainment of which the employee shall vacate the employment; (ii) in any other case, the attainment by the employee of the age of 58 years. Section 3 enables the appropriate Government (as defined in the Act) to appoint any Officer to be a Controlling Authority who shall be responsible for the administration of the Act while S. 4 provides for payment of gratuity and, in its material parts, reads thus : "4. Payment of gratuity. - (1) Gratuity shall be payable to the employee on the termination of his employment after he has rendered continuous service for not less than five years, (a) on his superannuation, or (b) on his retirement or resignation, or (c) on his death or disablement due to accident or disease : Provided that the completion of continuous services of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement. Provided further that in the case of death of the employee, gratuity payable to him shall be paid to his nominee or if no nomination has been made, to his heirs. Explanation For the purpose of this section, disablement means such disablement as incapacitates an employee for the work which he was capable, or performing before the accident or disease resulting in such disablement. (2) For every completed year of service or part thereof in excess of six months the employer shall pay gratuity to an employee at the rate of fifteen day's wages based on the rate of wages last drawn by the employee concerned. Provided........... (3) The amount Of gratuity payable to an employee shall not exceed twenty month's wages. (4) to (6)......... 6. Section 7, which provides for determination of the amount of gratutity, enables, under sub-sec. (1), a person who is eligible for payment of gratutity under the Act or any person authorised in writing to act on his behalf, to send a written application to the employer within such time and in such form as may be prescribed for payment of such gratutity. Subsection (2) obliges the employer, whether an application referred to in sub-sec. (1) has been made or not, to determine the amount of gratuity, as soon as it becomes payable and give notice in writing to the person to whom it is payable and also to the Controlling Authority specifying the amount of gratuity so determined. Under sub-sec. Subsection (2) obliges the employer, whether an application referred to in sub-sec. (1) has been made or not, to determine the amount of gratuity, as soon as it becomes payable and give notice in writing to the person to whom it is payable and also to the Controlling Authority specifying the amount of gratuity so determined. Under sub-sec. (3), the employer is bound to arrange of pay the amount of gratuity within such time, as may be prescribed to the person to whom it is payable. Subsection (4) enables the Controlling Authority to determine the amount of gratuity payable to an employee, after the enquiry and after giving the parties to the dispute a reasonable opportunity of being heard in case there is any dispute about the amount of gratuity payable or to the admissibility of any claim of an employee for payment of gratuity. Sub-section (7) of S. 7 provides for an appeal by the party aggrieved by the order passed by the Controlling Authority. Sub-section (8) entitles the Appellate Authority to confirm, modify or reverse the decision of the Controlling Authority after giving the parties to the appeal a reasonable opportunity of being heard. Under S. 8, where an amount of gratuity payable under the Act is not paid by the employer within the prescribed time, to the person entitled thereto, the Controlling Authority can get it recovered through the Collector as arrears of land revenue for payment to the person entitled. Section 14 then lays down that the provisions of the Act and the Rules made thereunder shall have effect, notwithstanding anything inconsistent therewith contained in any enactment, other than the Act or in any instrument or contract having effect by virtue of any enactment other than the Act. Under S. 15, an appropriate Government has been empowered to make rules for the purpose of the carrying out the provisions of the Act. 7. Payment of Gratuity (Central) Rules, were framed by the Central Government in exercise of powers under S. 15 and were published in the Gazette of India on Sept. 16, 1972. They came into force the same day. Amongst others, the Rules provide for the forms and procedure necessary to carry into effect the provisions of the Act. 8. 7. Payment of Gratuity (Central) Rules, were framed by the Central Government in exercise of powers under S. 15 and were published in the Gazette of India on Sept. 16, 1972. They came into force the same day. Amongst others, the Rules provide for the forms and procedure necessary to carry into effect the provisions of the Act. 8. A perusal of S. 4 (1) shows that gratuity is payable to an employee : (a) on the termination of his employment, (b) after he has rendered continuous service for not less than five years (except where termination of employment is due to death or disablement.) And the termination of employment is occasioned by : (i) his superannuation, (ii) his retirement (meaning, under S. 2 (q) termination of the service otherwise than on superannuation) (iii) his resignation, (iv) his death, (v) his disablement due to accident or disease. 9. The payment of gratuity is, thus, dependent upon the cessation of the employment in the sense that the relationship of the employee with his employer as an employee, on the occurrence of one of the aforesaid contingenices, except in the case of disablement in which event he becomes incapacitated for the work which he was capable of performing prior to his disablement due to accident or disease. In other words, where an employee attains the age of superannuation or his services are otherwise terminated or he resigns his job or dies, the contract of his employment comes to an end and he becomes entitled to the payment of gratuity under the Act. These occasions enumerated in cls. (a) to (c) of S. 4 (1) constitute the events on the occurrence whereof the Act entitles an employee to payment of gratuity. Once an employee attains the age of superannuation, his employment ceases. That is illustrated by S. 2 (r) (1) which lays down that in relation to an employee superannuation means attainment by him of such age, fixed in the contract or conditions of service, on the attainment of which he shall vacate the employment. For any period subsequent to the period of superannuation, the employee can lay claim to payment of gratuity only if he has been re-employed and is in continuous service, as defined in the Act, for not less than five years after having superannuated and the one of the other event mentioned in cls. For any period subsequent to the period of superannuation, the employee can lay claim to payment of gratuity only if he has been re-employed and is in continuous service, as defined in the Act, for not less than five years after having superannuated and the one of the other event mentioned in cls. (b) and (c) of S. 4 (1) occurs. 10. Where, as in the present case, the employee had attained the age of superannuation of sixty years prior to the coming into force of the Act, it is clear that his employment stood vacated before the commencement of the Act itself so that he could not claim to be entitled to payment of gratuity under the Act on the occasion of termination of employment by his superannuation. He could seek payment of gratuity under the Act only upon occurrence of the other contingencies contemplated by S. 4 (1) and that too if the other condition of the termination of his employment after he had rendered continuous service for not less than five years (except in the case of disablement due to accident or disease) stood fulfilled. The provisions of the Act do not lead to the construction that its benefit would be available even to those persons who had superannuated or resigned or whose services had been terminated otherwise than on superannuation or who had died or had become disabled due to accident or disease even before the coming into force of the Act. 11. The Assistant Labour Commissioner, Gorakhpur, as the Controlling Authority under the Act took the view that even though respondent 3 had attained the age of superannuation on Mar. 31, 1972 yet, in fact, he was retired with effect from Mar. 31, 1974, as such, he was entitled to payment of gratuity under the Act. The Appellate Authority (respondent No. 1) took a similar view by affirming the conclusion that, in fact, respondent 3 was retired with effect from March 31, 1974. Both the authorities were apparently in error in taking the view that respondent 3 was entitled to gratuity under the Act merely because in actual fact he was relieved by the petitioner on Mar. 31, 1974. Since respondent 3 stood superannuated on Mar. Both the authorities were apparently in error in taking the view that respondent 3 was entitled to gratuity under the Act merely because in actual fact he was relieved by the petitioner on Mar. 31, 1974. Since respondent 3 stood superannuated on Mar. 31, 1972 on attaining the age of 60 years, prior to the coming into force of the Act, he was not entitled to payment of gratuity under the Act on account of that superannuation. Subsequent to the date of superannuation, he had not completed the requisite period of continuous service for being entitled to payment of gratuity under the Act. The orders passed by the two authorities can, therefore, not be sustained. 12. In the result, the petition succeeds and is allowed. The order of the Controlling Authority dated Oct. 19, 1976 (annexure `6' to the petition) as well as that of the Appellate Authority dated Apr. 14, 1977 (annexure `VIII' to the writ petition), in so far as they require the petitioner to pay additional amount as gratuity under the Act are quashed. Parties are, however, directed to bear their own costs.