JUDGMENT

KURIAN, J.:

Leave granted.

2. Whether forfeiture of gratuity, under The Payment of Gratuity Act, 1972 (hereinafter referred to as ‘the Act’), is automatic on dismissal from service, is the issue for consideration in this case.

3. The respondent was an employee of the appellant-Bank.

While serving as a Branch Manager, disciplinary proceedings were initiated against him on the following charges:

“a) Failure to take all steps to ensure and protect the interest of the Bank.

b) Failure to discharge his duties with utmost devotion, diligence, honesty and integrity.

c) Doing acts unbecoming of an Officer Employee.”

4. On the charges being duly established, the respondent was dismissed from service on 03.06.2004. The order of dismissal has attained finality.

5. In the meanwhile, the respondent was issued a show-cause notice as to why the gratuity should not be forfeited on account of proved misconduct involving moral turpitude. His explanation was rejected and the gratuity was forfeited by order dated 20.04.2004.

The order reads as follows:

“We refer to the show cause notice no. CO:IRD:654 dated 30.01.2004, seeking your explanation as to why the gratuity payable to you should not be fo