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2026 LLR WEB 920 (CALCUTTA HIGH COURT)
Bank regulations permitting forfeiture of gratuity cannot override the Payment of Gratuity Act, 1972 where the financial loss is not quantified during the disciplinary/enquiry proceedings.
LABOUR AND INDUSTRIAL LAWS - Payment of Gratuity Act, 1972 - Sections 4(6), 5 and 14 - Forfeiture of gratuity - Quantification of financial loss - Overriding effect of the Act - The private respondent, a bank employee, was dismissed after a disciplinary enquiry for irregularities in sanctioning loans; he did not challenge the dismissal but claimed gratuity before the Controlling Authority - The bank sought forfeiture citing financial loss, quantified for the first time in the forfeiture notice issued long after dismissal... subscribe to read more..
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