Ins. by Act 22 of 1987, s. 5 (w.e.f. 1-10-1987). — THE PAYMENT OF GRATUITY ACT, 1972

7. Ins. by Act 22 of 1987, s. 5 (w.e.f. 1-10-1987). has taken an insurance referred to in sub -section (1) or has established an approved gratuity fund referred to in sub -section (2). (4) The appropriate Government may, by notification, make rules to give effect to the provisions of this section and such rules may provide for the composition of the Board of Trustees of the approved gratuity fund and for the recovery by the controlling authority of the amount of the gratuity payable to an employee from the Life Insurance Corporation of India or any other insurer with whom an insurance has been taken under sub -section (1), or as the case may be, the Board of Trustees of the approved gratuity fund. (5) Where an employer fails to make any payment by way of premium to the insurance referred to in sub -section (1) or by way of contribution to an approved gratuity fund referred to in sub-section (2), he shall be liable to pay the amount of gratuity due under this Act (including interest, if any, for delayed payments) forthwith to the controlling authority. (6) Whoever contravenes the provisions of sub-section (5) shall be punishable with fine which may extend to ten thousand rupees and in the case of a continuing offence with a further fine which may extend to one thousand rupees for each day during which the offence continues. Explanation. — In this section " approved gratuity fund " shall have the same meaning as in clause (5) of section 2 of the Income -tax Act, 1961 (43 of 1961).]

Section 7