RASHTRIYA MILL MAZDOOR SANGH vs NATIONAL TEXTILE CORPORATION LTD. .

The Supreme Court addressed the liability of the National Textiles Corporation (NTC) for gratuity under the Payment of Gratuity Act, 1972, in the context of the Textile Undertakings (Take Over of Management) Act, 1983. The Court held that since the employee's claim for gratuity arose prior to the takeover of management by NTC, as per Section 3(7) of the Act, NTC was not liable for the gratuity payment. The judgment of the Bombay High Court was upheld, confirming that the liability rested with the original employer, M/s. Finally Mills Ltd.