THE HON’BLE SRI JUSTICE PULLA KARTHIK

ORDER:

This Writ Petition, under Article 226 of the Constitution of India, is filed seeking the following relief:

“…to issue a Wirt or order preferably in the nature of Writ of Mandamus and after calling for records pertaining to the impugned Proceedings/Order Gratuity Appeal no.13/2021 dated 8-12-22 passed by 1st Respondent declare the same as illegal, arbitrary, contrary to law and unconditional and consequently quash the same as such and consequently quash the order dated 28-10-21 in PG Application No.13/2021 passed by the 2nd Respondent as illegal, arbitrary, contrary to law and unconstitutional and to pass…”

2. The brief facts of the case are as follows:

2.1. Respondent No.3 joined the service of the petitioner Bank on 10.04.1976 as a Clerk-cum-Cashier and was later promoted as Officer JMGS I cadre w.e.f., 31.12.1986. Subsequently, he was posted as Branch Manager of Katravulapalli Branch, East Godavari District, Andhra Pradesh during May, 1989. While working in the said branch, respondent No.3 was alleged to have indulged in certain serious acts of omissions and commissions in sanction and disbursal of certain loans. Therefore, a criminal case was registered against him vide CBI Case No.17/1994 on the file of the Special Judge for CBI Cases, Vishakapatnam. Subsequently, respondent No.3 was imposed with a major penalty of reduction of pay by four stages in time scale vide order dated 30.08.1995.

2.2. After conducting a full-fledged trial, the Court of Special Judge for CBI cases, Vishakapatnam, passed the judgment dated 21.03.1997, holding respondent No.3 guilty of the offenses punishable under Sections 420 r/w. 120-B of the Indian Penal Code and 13(2) r/w. 13(1)(d) of the Prevention of Corruption Act, 1988, and sentenced him to undergo Rigorous Imprisonment for two years under each count besides imposing a fine of Rs.10,000/- and Rs.5,000/- respectively. Since respondent No.3 was convicted in the CBI Case, the petitioner Bank issued him a show-cause notice on 07.05.1997, and subsequently, dismissed him from service vide order dated 18.08.1997.

2.3. Respondent No.3 preferred an appeal against the conviction before the erstwhile High Court of Andhra Pradesh by filing Crl.A.No.330 of 1997, which was dismissed vide judgment dated 26.09.2003, confirming the earlier conviction. The matter was carried to the Hon’ble Apex Court vide Criminal Appeal No.756 of 2004 and the Hon’ble Apex Court also dismissed the appeal on 18.10.2012. However, the sentence of Rigorous Imprisonment was reduced from two years to one year. Respondent No.3 never challenged the dismissal order, and therefore, it had attained finality.

2.4. Thereafter, the petitioner bank forfeited the payment of gratuity to respondent No.3 in terms of Section 4(6)(b)(ii) of the Payment of Gratuity Act, 1972, in view of his conviction of offences involving moral turpitude. As such, respondent No.3 approached respondent No.2-The Controlling Authority under the Payment of Gratuity Act, 1972, and filed P.G. Application No.13 of 2021, seeking a direction to the petitioner Bank for payment of gratuity together with interest. The said application was allowed on 28.10.2021, directing the petitioner Bank to make the payment of Gratuity amounting to Rs.1,00,000/- along with simple interest @ 10% per annum w.e.f., 19.08.1997 till the actual date of payment.

2.5. Aggrieved by the said decision, the petitioner Bank approached respondent No.1-The Appellate Authority under the Payment of Gratuity Act, 1972, and filed Gratuity Appeal No.13 of 2021, which was dismissed vide order dated 08.12.2022, confirming the order of respondent No.2 dated 28.10.2021. Assailing the said orders, the present Writ Petition has been filed.

3. Heard Dr. K. Lakshmi Narasimha, learned counsel for the petitioner and Sri Junnu Jayaprasad Thomas, learned counsel appearing for respondent No.3.

4. Learned counsel for the petitioner contended that respondent Nos.1 and 2 failed to observ