The Supreme Court has held that a Controlling Authority under the Payment of Gratuity Act, 1972 has jurisdiction only to compute the amount of gratuity payable to an ’employee’, and not to decide the question of liability or fasten it on a party. Setting aside a Bombay High Court order that had made ONGC liable to pay gratuity to workers engaged through contractors, the Court held there was no employer-employee relationship, but directed that no recovery be made from the workers as the amounts had already been paid.
