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HARISH KUMAR
Chairman, Madhya Bihar Gramin Bank – Appellant
Versus
Union of India – Respondent
Harish Kumar, J.—Heard M.N. Parvat, learned senior counsel, along with Mr. Ved Prakash Srivastava, learned counsel for the petitioner and Mr. Jai Prakash Singh, learned counsel for the private respondent no.4.
2. The petitioner, who is holding the post of Chairman, Madhya Bihar Gramin Bank, has filed the present writ petition under Article 226 of the Constitution of India, seeking quashing of the order dated 31.08.2017 (Annexure-4) passed by the Assistant Labour Commissioner-1(C)-cum- Controlling Authority under the Payment of Gratuity Act, 1972 (for short “the Act of 1972”) to the extent by which the respondent no.4 has been found entitled to get the amount of gratuity as calculated by him for the entire period of his service along with the interest @10% per annum for the period in between 31.07.2010 to 05.05.2017 total amounting to Rs. 13,37,951/- within thirty days of the order. The petitioner further sought quashing of the order dated 17.09.2018 (Annexure-11) passed by the learned Deputy Chief Labour Commissioner, (C)- cum-Appellate Authority under the Act of 1972 by which the Appellate Authority has affirmed the afore-noted judgment/order dated 31.08.2017.
3. The necessary facts
The Payment of Gratuity Act, 1972, is a beneficial welfare legislation that overrides internal service regulations. Forfeiture of gratuity is strictly limited to the specific conditions prescribed un....
The main legal point established in the judgment is that the entitlement to gratuity under a specific regulation and a general act was determined based on the fulfillment of conditions of eligibility....
Gratuity is a statutory right under the Payment of Gratuity Act, 1972, and cannot be forfeited without legal justification, even after dismissal for misconduct.
Gratuity forfeiture requires a conviction for moral turpitude; without such conviction, an employee remains entitled to gratuity despite termination for misconduct.
Employees of bank were found to be eligible for gratuity as per 1972 Act and, hence, they were found to be entitled to benefit of Regulation 72(1) of 2010 Regulation.
Gratuity under the Payment of Gratuity Act, 1972 must include entire continuous service, including stop-gap employment, unless exempted by the appropriate Government.
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