Interpreting Section 4(6)(b)(ii) of the Payment of Gratuity Act, the Supreme Court in its order dated 14.8.2018 (copy attached) has held that forfeiture of gratuity on the ground of misconduct which constitutes an offence involving moral turpitude, is permissible only if he is convicted by a court of competent jurisdiction for the said offence.
The bench of Justice Kurian Joseph and Justice Sanjay Kishan Kaul (in Union Bank of India vs. CG Ajay Babu) also observed that forfeiture of gratuity is not automatic on dismissal from service; but it is subject to sub-Sections (5) and (6) of Section 4 of the Payment of Gratuity Act, 1972.
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The bench of Justice Kurian Joseph and Justice Sanjay Kishan Kaul (in Union Bank of India vs. CG Ajay Babu) also observed that forfeiture of gratuity is not automatic on dismissal from service; but it is subject to sub-Sections (5) and (6) of Section 4 of the Payment of Gratuity Act, 1972.
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