Dear Nitin Kumar,
An employee commits the fraudulent activity. The company recovers the amount involved in the fraud and also awards him a punishment which is termination from the services. Despite all this, the company wishes to take legal action. But on what grounds? Under the provisions of which law or act?
Now coming to your last query on the company's policies. Provisions of the Constitution of India are comprehensive and their primacy remains intact. These are over and above the policies of a private company. Therefore, what is mentioned in the policies does not matter.
A question from our side also. Before terminating the employee, did the company order the domestic enquiry? If yes, then was it conducted in a free and fair manner? If not, then the company has not followed a due process of law. The reasons for not doing so are best known to the company authorities.
Thanks,
Dinesh Divekar