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2026 LLR WEB 767 (CALCUTTA HIGH COURT)
Forfeiture of gratuity under Section 4(6)(a) is valid upon proof of wilful damage or loss through disciplinary proceedings conducted in accordance with natural justice.
PAYMENT OF GRATUITY - Forfeiture - Section 4(6)(a) of the Payment of Gratuity Act, 1972 - Section 4(6)(b)(ii) - Form-M - Disciplinary proceedings - Standard of proof - Criminal proceedings - The respondent-employee, Director (Finance), was dismissed after a departmental enquiry upon proof of gross negligence causing a loss of Rs.35 crores to the petitioner-institution - His claim for gratuity was rejected by the employer - Controlling authority directed payment of gratuity holding violation of Rule 8 of Central Rules for non-issuance of Form-M and non-intimation to controlling authority - Appellate authority upheld the same on technical grounds - Held, where disciplinary proceedings are conducted following principles of natural justice and charges..... subscribe to read more..
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