Forfeiture of Gratuityunder Payment of Gratuity Act not automatic on dismissal from service, SC
The Supreme Court has held that dismissal from service does not automatically result in forfeiture of gratuity under the Payment of Gratuity Act, 1972 (Act). The same is subject to Sections 4(5) and 4(6) of the Act. The judgment was passed by a Bench of of Justice Kurian Joseph and Justice Sanjay Kishan Kaul in the case of Union Bank of India v. CG Ajay Babu . By way of background, the Respondent in the case, Ajay Babu, was employed by the Petitioner-Bank as a Branch manager. During the course of his service, disciplinary proceedings were initiated against him on the ground that he failed to take all steps to ensure and protect the interests of the Bank, failed to discharge his duties with utmost devotion, and conducted himself in a manner “unbecoming of an officer.” On the abovementioned charges, the respondent was dismissed from service in June 2004. A few months before the dismissal order attained finality, the respondent was...