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VISHAL MISHRA
GENERAL MANAGER, CANARA BANK – Appellant
Versus
PRAKASH N. MANDVE – Respondent
| Table of Content |
|---|
| 1. nature of entitlement to gratuity under the payment of gratuity act. (Para 1 , 2 , 3) |
| 2. justification for withholding interest on delayed payment. (Para 4 , 5) |
| 3. outcome of disciplinary and legal proceedings against the employee impacts gratuity rights. (Para 6 , 7) |
| 4. clarity on conditions for forfeiture of gratuity based on legal standards. (Para 9 , 10) |
| 5. legal guidelines for withholding gratuity pending inquiry. (Para 11 , 12 , 15) |
| 6. final ruling on gratuity payment and interest entitlement. (Para 16 , 17 , 18) |
ORDER : – With the consent of the parties the matter is finally heard.
Challenge in this petition has been made to an order dated 10th July, 2019 passed by the Gratuity Appeals Nos. 60/18 and 61/18, whereby, Deputy Chief Labour Commissioner, Central Jabalpur has passed an order to pay gratuity amount alongwith interest to the respondent No. 1. Challenge is being made on limited issue that whether the respondent No. 1 is entitled for grant of interest for the delayed payment of gratuity by the authority or not?
2. It is pointed out that the petitioner are a cooperate body constituted under the Banking Companies Act, 1970 having its head office at Manipal
Advocates appeared :For the Appellant : Hans Raj Mutreja For the Respondent : Tej Kumar Malik
The main legal point established is that an employee is entitled to interest on withheld gratuity as per Section 7(3A) of the Payment of Gratuity Act, 1972, and the provisions of the 1972 Act overrid....
Once full amount of gratuity becomes payable to the employee due to the consequences of law, then the right to get statutory interest in terms of Section 7(3A) of the Payment of Gratuity Act, cannot ....
The court held that the employer was justified in withholding the gratuity pending finalization of disciplinary proceedings as permitted in Section 4(6) of the Payment of Gratuity Act.
Gratuity is a statutory entitlement not subject to withholding after superannuation absent explicit legal grounds for forfeiture, emphasizing employee protection under the Act.
Gratuity payment can be withheld during the pendency of departmental or judicial proceedings as per Rule 64(1)(c) of the Chhattisgarh Civil Services (Pension) Rules, 1976.
Employer cannot withhold gratuity for unauthorized retention of quarters post-retirement; statutory interest of 10% applies for delayed payment.
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.
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