Gratuity can be forfeited to the extent of the damage or loss so caused - Karma Global
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Gratuity can be forfeited to the extent of the damage or loss so caused

 

Contents News/Article Date: Arguments heard on 18/4/2022

Relating to which Act: Payment of Gratuity Act, 1972           

Penalty under the Act:

Applicable to which State:  All the States and Establishments covered by the Gratuity Act

Type:  Writ Petition in the High court of Madhya Pradesh at Jabalpur before HON’BLE SMT. JUSTICE NANDITA DUBEY

WRIT PETITION No.6800/2020   

Pertains to: PRADEEP KUMAR, AGED ABOUT 52 YEARS, ………. PETITIONER (By Shri Tej Kumar Malik, Advocate) AND FIELD GENERAL MANAGER, CENTRAL BANK OF INDIA (By Shri P.K. Mishra, Advocate)

Relevance of this news: Karma Global is in the business of HR Services, Payroll, Outsourcing and Regulatory Compliances right from its inception in 2004 and since then, has brought in a lot of efficiencies and technological upgradations with experts on its roll, to ease the hassles of Payroll Processing, Temp Staffing, On-boarding, Employee Life Cycle, Statutory, Regulatory and Payroll compliances by providing customized solutions to all its elite clients.

Karma Global does excellent work on providing ESI Services both to establishments as well as Insured Employees and in this respect, it will inform all its clients and insured employees about the many announcements that the Government has made in terms of expansion of ESI Scheme, so as to make it available in the remotest of places viz. 744 districts and also to make health facilities and medical colleges in progressive districts of our country further expanding post graduate medical seats.

And in this instance: In the present case, the petitioner was caught red handed while accepting illegal gratification for release of remaining payment to Smt. Kantibai from CKCC limit. He was thereafter convicted under Sections 7 and 13 of the Prevention of Corruption Act by the court of competent jurisdiction. Petitioner has misused and abused his official position for getting illegal gratification. There is no dispute that the offence for which the petitioner has been convicted and sentenced to three years’ rigorous imprisonment with fine involves moral turpitude.

In view of the afore stated, the action of respondent/employer in forfeiting the gratuity of petitioner/employee is justified in proper and calls for no interference. This petition is accordingly dismissed

Section 4(6) of the Gratuity Act reads as under: – W.P. No. 6800/2020

4(6) Notwithstanding anything contained in sub-section (1):

       (a) the gratuity of an employee, whose services have been terminated for any act, wilful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer, shall be forfeited to the extent of the damage or loss so caused.

       (b) the gratuity payable to an employee may be wholly or partially forfeited]

Subject: Gratuity can be forfeited to the extent of the damage or loss so caused

 

Attached is the judgement

 

Gratuity can be forfeited to the extent of the damage or loss so caused

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