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ALOK MATHUR
Canara Bank,Head Office, Bengaluru – Appellant
Versus
Appellate Authority,Payment of Gratuity Act/Deputy Chief Labour Commissioner(C),Kanpur – Respondent
JUDGMENT
Alok Mathur, J.
Heard Sri. Birendra Prasad Singh, learned counsel for petitioners as well as Sri. Ashwani Kumar Singh, learned counsel for respondent Nos. 1 & 2 and Sri. Ankit Pandey, Advocate has appeared on behalf of respondent No. 3.
2. The petitioner, a nationalized bank has approached this Court assailing the order dated 29.11.2023 passed by the appellate authority under the Payment of Gratuity Act, 1972 i.e. Deputy Chief Labour Commissioner (Central), Kanpur whereby while deciding the appeal preferred by the employee i.e. respondent No. 3, the petitioner has been directed to deposit entitled gratuity amount of Sri. K. Mohammad Hafeez/respondent No. 3 before the Controlling Authority within a time from the date of receipt of the said order subject to outcome of the investigation of the criminal proceedings.
3. The brief facts of the present case are that the employee had joined the Syndicate Bank now Canara Bank as a clerk and was subsequently promoted as an officer of on 30.05.1999 and further to the post of General Manager till he was dismissed from service on 16.12.2019. Certain irregularities were noticed wherein respondent No. 3 has disbursed large amount of loans
Forfeiture of gratuity is premature when dismissal is under appeal and criminal proceedings are pending, emphasizing the need for adherence to natural justice.
Proper notice, quantification, and opportunity to be heard are mandatory for forfeiting gratuity under the Payment of Gratuity Act, 1972; failure to comply invalidates the forfeiture.
Gratuity is a statutory entitlement not subject to withholding after superannuation absent explicit legal grounds for forfeiture, emphasizing employee protection under the Act.
Gratuity is a statutory right under the Payment of Gratuity Act, 1972, and cannot be forfeited without legal justification, even after dismissal for misconduct.
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