Gratuity Claim - Labour Commissioner

Hi Friends,
I need a favour from all of you, one of our employee has resigned from his services few months back and now he is claiming for gratuity from us. This employee was not in good books of the management as he has misconducted with his HOD and also with some senior management personals, he has instigated some other employes also who were reporting to him and made them resign with him. Now he is willfully causing damage to the reputation of our institution which made some of our students to drop.
we, in good faith and keeping their future in view didn't terminate them and in return to this they have sent us a notice from labour commissioner for not giving them gratuity. This employee has worked for more than 5 years as manager. Is their any way of rejecting claim for payment of gratuity.
Please help

No, did he misused any funds or have any case is filled by management, if not you are liable to pay the amount
Laxmi
9866917232

Dear
No ,you can not hold/reject payment of gratuity to him.
As per section 4(6b) of payment of gratuity act which says
The gratuity payable to an employee may be wholly or partially forfeited
(1)If services of such employee been terminated for his riotous or conduct or any other violence on his part.
(2)if services of such employee been terminated for any act which constitues offence involving moral turpitude,providedsuch offence is committedby him in the course of employment
so his services was never terminated on above said grounds than on what ground you can
forfeit his gratuity.

Dear All,
Mr.Malik is right.
You can forfeit his gratuity, if you have conducted domestic inquiries and terminated him on the ground of any one of the above said misconducts.
In your case, you have to disburse his eligible gratuity.
Sethupathy,