NDLI: Union Bank of India and Others Vs. C.g. Ajay Babu and Another

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	1972: s.4(5) and (6) – Forfeiture of gratuity is not automatic on dismissal from service. Payment of Gratuity Act
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Act(s) Referred	Payment of Gratuity Act, 1972 (39 of 1972)
Case(s) Referred	Referred Case 0 Referred Case 1 Referred Case 2
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Dismissed
Headnote	Payment of Gratuity Act, 1972: s.4(5) and (6) – Forfeiture ofgratuity is not automatic on dismissal from service.Payment of Gratuity Act, 1972: s.4 sub-sections 5 and 6 –Forfeiture of gratuity – Bipartite settlement prevailing in the appellantbank – Respondent, an employee of appellant-bank – Disciplinaryproceedings – Dismissal from service – Order of forfeiture of gratuityon account of proved misconduct involving moral turpitude – HighCourt held that respondent was entitled to gratuity as there was nofinancial loss caused to bank and that as per bipartite settlement,forfeiture of gratuity is permissible only in case misconduct leadingto dismissal has caused financial loss to the bank and only to thatextent – Held: It was not the case of the appellant-bank that themisconduct of respondent caused any financial loss to the bankand, therefore, forfeiture, taking recourse to sub-section (6) of s. 4was wrongly resorted to by the appellant-bank – Respondentemployeeis entitled to the gratuity.Payment of Gratuity Act, 1972: s.4(6)(a) and (b) – It is notthe conduct of a person involving moral turpitude that is requiredfor forfeiture of gratuity but the conduct or the act should constitutean offence involving moral turpitude and convicted accordingly bya court of competent jurisdiction – It is not for the employer todecide whether an offence has been committed – It is for the court– In the instant case, there is no conviction of respondent formisconduct which according to bank is an offence involving moralturpitude – Therefore, there is no justification for the forfeiture ofgratuity on the ground that the misconduct proved against himamounted to acts involving moral turpitude.Payment of Gratuity Act, 1972: The Act must prevail over theRules on Payment of Gratuity framed by the employer.
Judge	Hon'ble Mr. Justice Kurian Joseph
Neutral Citation	2018 INSC 708
Petitioner	Union Bank Of India And Others
Respondent	C.g. Ajay Babu And Another
SCR	[2018] 9 S.C.R. 995
Judgement Date	2018-08-14
Case Number	8251

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