Gratuity act

Accoriding to section 1 (3) (b)-

every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months;

IN MR.X CASE

there is only 3 employees there fore the act is not applicable to MR.X's  commercial establishment

EXPL: an establishment should have 10 or more employee.  not the  employer (owner) of the establishment..

each establishment is different in consideration even though the owner is same

is there any case law regarding the same that you are saying. it will be really helpful if you could help me with that.

thank you