Gratuity is a right earned through good service and cannot be withheld without due process of law. It can only be forfeited in specific cases of termination for misconduct, insolvency, or inefficiency.

Sanjay Yadav, J.

1. Heard.

2. Petitioner is aggrieved of non-grant of gratuity amounting to Rs. 35,000/-. The reasons as borne out from record being pendency of three Lokayukta cases and three departmental enquiries.

3. Petitioner retired as Deputy Director, Madhya Pradesh Khadi Tatha Gram Udyog Board w.e.f. 30.11.2012 on attaining the age of superannuation. The Board is a statutory body constituted under the provisions of Madhya Pradesh Khadi Tatha Gram Udyog Adhiniyam, 1978 (hereinafter referred to as 'the 1978 Act'). The services therein are non-pensionary. That, as per Regulation, known as Madhya Pradesh Khadi Tatha Gramodyog Regulation, 1980 framed under Section 29 of the 1978 Act, following Rules framed under Order 309 of the Constitution of India as applicable to members belonging to State service are made applicable mutatis mutandis, viz. M.P. Civil Services (Leave) Rules, 1977; M.P. Civil Services (Conduct) Rules, 1965; M.P. Civil Services (Medical Attendance) Rules, 1958; M.P. Civil Services Travelling Allowance & Daily Allowance Rules; M.P. Civil Services (General Condition of Service) Rules, 1961; M.P. Civil Services (Classification, Control & Appeal) Rules, 1966.

4. Apparently, since the Board is not a pensionable establishment, Madhya Pradesh Civil Services (Pension) Rules, 1976 are not adopted. The gratuity, however, is governed by the Gratuity Payment Scheme brought in vogue by the Board vide resolution No. 19 passed in its 7th meeting on 21.03.1982 (brought on record as Annexure P/3). Clause 1 and 2 which are relevant in the present context are reproduced:

"1. Gratuity will be granted for good, efficient and faithful service to whole-time employees on the regular establishment of the M.P. Khadi and Village Industries Board and shall exclude the following:-

1) Casual and non-regular employees.

2) Government servants and others employed on deputation terms.

3) Employees on contract basis.

4) Apprentices and Trainess.

5) Re-employed persons.

6) Schematic Staff.

7) Honorary workers.

8) Honorary workers.

9) Employees on daily wages.

10) And other class of employees not specifically made eligible for this benefit.

2. Conditions:

(a) Gratuity shall be granted in the following cases:-

i) Discharge on abolition of post;

ii) Permanent incapacity due to bodily or metal infirmity:

iii) Superannuation (i.e. On the attainment of 58 years of age in the case of class I, II, III and 60 years in the case of class IV).

iv) Retirement/Resignation after 30 years qualifying service.

(b)(i) Gratuity will not be paid to an employee who resigns from his/her service except as provided in paragraph 2(a)(iv) above, or whose services are terminated for misconduct, insolvency or inefficiency.

(ii) Except in the case of death, the gratuity will be admissible only after 5 years' qualifying service.

'Qualifying Service' referred to above, will mean all service rendered under the Board after completion of 18 years of age and shall include the past services in the M.B. Gramodyog Samiti and M.B. Khadi and Village Industries Board provided such service is continuous, except the period of service rendered such service is continuous, except the period of service rendered as apprentice and extraordinary leave without leave salary."

5. Relying on Clause 2 it is contended that gratuity can be withheld in the cases enumerated under sub-clause (b) of clause 2. It is contended that though proceeded against by Lokayukta and the departmental enquiry the gratuity cannot be withheld. Reliance is placed on the judgment in State of Jharkhand vs. Jitendra Kumar Shrivastava, (2013) 12 SCC 210.

6. Respondents on their turn have contradicted the claim. It is contended that since gratuity is granted for good efficient and faithful service to whole time employee and the services of the petitioner being not unblemished as he has been subjected to departmental enquiries and three challans having been filed in the Court by Lokayukta, the services cannot be termed as good, efficient