IN THE HIGH COURT OF JUDICATURE AT BOMBAY
S.C. GUPTE, J.
Shri Laxman Balu Deualkar – Appellant
Vs.
The Chief Executive Officer, Kolhapur District Central Coop. Bank Ltd. - Respondent
WRIT PETITION NO.9044 OF 2017
Decided on : 14-06-2018
Payment of Gratuity Act - Section 4 - fraudulently and by misuse of his office - Charge of misconduct services - Petitioner is an ex employee Respondent bank - Petitioner was charge sheeted for misconduct alleging misappropriation of funds - It is case of Respondent that Petitioner whilst working as manager in Branch of bank fraudulently by misuse of his office opened bogus saving account in name fictitious client and caused sum to be deposited in account – He thereafter on June fraudulently withdrew that amount by executing bogus withdrawal slip in his own handwriting and by forging signature of accountholder – Held, There is no substance in submission that employee cannot be made to face second show cause notice or inquiry for forfeiture - It is no double jeopardy - First show cause notice as also domestic inquiry was for termination of service second is to show cause why in addition gratuity should not be forfeited - Reason for forfeiture is nothing but termination on account proven misconduct in pursuance of first show cause notice and inquiry - Cause to be shown is whether or not this termination falls within provisions of Section Act - That is perfectly legitimate - Case UCO Bank cited by Counsel is on an altogether different point - That was case where employee was terminated upon being found guilty of misconduct without quantifying actual loss suffered by employer as result of such misconduct - Charges against employee were failure to protect interest bank acts contrary to instructions superiors failure to discharge duties with integrity - These charges were proved but none mentioned actual loss caused to bank - Thereafter separate inquiry was ordered in same misconduct for proving and quantifying loss with view to forfeit gratuity - That was impermissible by court holding that employee could not be subjected to two inquires for same misconduct – Petition dismissed
This petition challenges an order passed by the appellate authority under the Payment of Gratuity Act, 1972.
2. The Petitioner is an exemployee of the Respondent bank. The Petitioner was chargesheeted for misconduct alleging misappropriation of funds. It is the case of the Respondent that the Petitioner, whilst working as a manager in Sanjani Branch of the bank, fraudulently and by misuse of his office, opened a bogus saving account on 1 June 1995 in the name of a fictitious client and caused a sum of Rs.10,000/to be deposited in the account. He, thereafter, on 8 June 1995, fraudulently withdrew that amount by executing a bogus withdrawal slip in his own handwriting and by forging the signature of the accountholder. He also caused to be deposited a sum of Rs.13,000/in the same account on 21 June 1995 and withdrew the said sum on 27 June 1995 again by writing a bogus withdrawal slip and forging the signature of the account holder. On 21 June, 1995, the Petitioner caused one more bogus saving account in the name of B.A. Patil and deposited a sum of Rs.10,000/- in that account on 21 June 1995 and once again, withdrew the said sum from the account by executing a bogus withdrawal slip in his own handwriting and forging the signature of the account holder thereon. It was the Respondent's case that accordingly, a total sum of Rs.33,000/was fraudulently misappropriated by the Petitioner. After a duly conducted departmental enquiry, where the Petitioner was found guilty of the charge of misconduct, the services of the Petitioner were terminated on 6 July 1996 by giving one month pay in lieu of notice. Being aggrieved by the termination order, the Petitioner filed a complaint of unfair labour practice, being Complaint (ULP) No.5 of 1997, before the Labour Court at Kolhapur. The complaint was dismissed by the learned Judge of the Labour Court. On 24 June 2008, the Petitioner filed an application in Form-I for payment of gratuity. Since gratuity was not paid to him despite his application, on 2 July 2008 he preferred an application under Section 4 of the Payment of Gratuity Act before the controlling authority under the Act, being Application (PGA) No.63 of 2008. During the pendency of this application, a show cause notice was issued by the Respondent bank to the Petitioner for forfeiture of the amount of gratuity. After considering the Petitioner's reply to the show cause notice, by its notice dated 28 August 2008, the Respondent forfeited the gratuity payable to the Petitioner under Section 4(6)(b)(ii) of the Act. The controlling authority, by its order dated 15 July 2005, allowed the Petitioner's application and directed the Respondent bank to pay a sum of Rs.1,05,404/to the Petitioner towards gratuity along with interest at the rate of 10% per annum from the date of his application and till realisation. This order was challenged by the Respondent bank before the appellate authority under the Act. The appellate authority, by its judgment dated 9 December 2015, allowed the appeal and set aside the order of the controlling authority. The order of the appellate authority is challenged in the present petition.
3. Mr.Chavan, learned Counsel for the Petitioner, makes three submissions. Firstly, it is submitted that the appellate authority could not have permitted forfeiture of gratuity by the Respondent, since the Petitioner was not convicted of any offence for the time being involving moral turpitude. Learned Counsel submits that in order to invoke Section 4(6)(b)(ii) of the Act for forfeiture of gratuity, conviction of the concerned employee for the time being in force of an offence involving moral turpitude, is a condition precedent. Learned Counsel, relies on a judgment of the Supreme Court in the case of Jaswant Singh Gill vs. Bharat Coking Coal Ltd., (2007) 1 SCC 663 and of Chhattisgarh High Court in the case of The General Manger, UCO Bank, Kolkata vs. Jitendra Kumar Shrivastava, 2016 DGLaw(Chh) 1 in this behalf. Learned Couns
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