NDLI: Jyotirmay Ray Vs. The Field General Manager, Punjab National Bank & Ors.

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Service law
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Case(s) Referred	Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Allowed
Headnote	Issue for consideration:Whether the denial of employer’s contribution of Provident Fundand non-payment of gratuity to the employee-appellant because ofthe order of compulsory retirement, as directed by the impugnedorder, is justified.Service law – Retirement benefits – Payment of ProvidentFund (employer’s contribution) and gratuity – Forfeiture of –Writ petition by Sr. Manager compulsorily retired, challengingdenial of the benefit of leave encashment, provident fund(employer’s contribution), gratuity and pension by the Bank –Bank’s plea that due to irregularities in granting loans and cashcredit facilities, loss was caused to the Bank – Single Judgedirected the Bank to release the provident fund (employer'scontribution) as well as gratuity with interest and leaveencashment, however denied the benefit of pension – DivisionBench maintained the order of grant of leave encashment, butset aside the grant of provident fund (Bank's contribution)and gratuity – Justification:Held: Not justified – Absence of any allegation in the chargesheetthat by the act of the Manager, the Bank suffered loss nor thequantification of the amount of loss was done – Board of Directorsdid not afford an opportunity to the appellant on the issue of causingloss or damage to the Bank, prior to the passing of the resolutionof appropriation of the contribution of the Bank from the providentfund account of the appellant – Findings recorded by the SingleJudge with regard to payment of Bank's contribution of providentfund is equitable, just and is upheld – As regards, forfeiture ofgratuity, instant case is not a case of riotous behaviour of appellantor his involvement in any criminal case – While dealing with theissue of forfeiture of employers’ contribution of provident fund inthe enquiry report, no finding regarding causing loss to the bankor on quantification of the amount of loss has been recorded –Quantification of loss not proved in the enquiry – Even otherwise,prior to passing of an order of forfeiture of gratuity, opportunity ofhearing not afforded to the appellant – Act of forfeiture of gratuityis not envisaged in the instant case as the provisions are silenton the aspect of forfeiture in case of compulsory retirement – Inview of the 1977 Regulations, 1979 Regulations, the Circular andthe facts of the case, the findings of the Single Judge upheld andthe judgment rendered by the Division Bench set aside – Paymentof Gratuity Act, 1972 – Punjab National Bank (Officers’) ServiceRegulations, 1979 – Punjab National Bank Employees' ProvidentFund Trust Rules – r. 13. [Paras 12, 13, 17, 22, 23 and 25-27]
Judge	Hon'ble Mr. Justice J.K. Maheshwari
Neutral Citation	2023 INSC 979
Petitioner	Jyotirmay Ray
Respondent	The Field General Manager, Punjab National Bank & Ors.
SCR	[2023] 14 S.C.R. 199
Judgement Date	2023-11-06
Case Number	6611

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Jyotirmay Ray Vs. The Field General Manager, Punjab National Bank & Ors.

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Jyotirmay Ray Vs. The Field General Manager, Punjab National Bank & Ors.

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