Skip to main content

Gratuity Can Be Denied Only When There Is Termination On Account Of Misconduct

The Supreme Court in Jorsingh Govind Vanjari Vs. Divisional Controller Maharashtra, State Road Transport Corporation, has held that in order to deny gratuity to an employee, it is not enough that the alleged misconduct of the employee constitutes an offence involving moral turpitude as per the report of the domestic inquiry, but there must be termination on account of the alleged misconduct, which constitutes an offence involving moral turpitude. In the instant case, a bus conductor was terminated on the allegation that he had collected fare from six passengers without issuing tickets. In the domestic inquiry, he was found guilty but the Labour court set aside the termination order. But taking note of the fact that he had crossed the age of superannuation, instead of reinstatement, 50 per cent of the back wages from the date of termination till the date of superannuation with all other service benefits were granted. On appeal by the employer, the Bombay High Court modified the award and held that the employee would not be entitled to the gratuity but a one-time compensation of an amount equivalent to 50 per cent of the back wages. This order was assailed before the Supreme Court. Setting aside the high court order, the bench comprising Justice Kurian Joseph and Justice RF Nariman observed that the high court went wrong in holding that the Labour court did not follow the procedure. The court observed: “It appears that the high court itself has granted compensation since the court felt that the termination was unjustified and since reinstatement was not possible on account of superannuation. In case, the high court was of the view that termination was justified, it could not have ordered for payment of any compensation.” Holding that the employee shall be entitled to gratuity in respect of his continuous service from his original appointment till the date of his superannuation, the bench observed: “In order to deny gratuity to an employee, it is not enough that the alleged misconduct of the employee constitutes an offence involving moral turpitude as per the report of the domestic inquiry. There must be termination on account of the alleged misconduct, which constitutes an offence involving moral turpitude.”

Read more at: http://www.livelaw.in/gratuity-can-denied-termination-account-misconduct-sc/
Labels:

Comments

Post a Comment

Popular posts from this blog

MACT - Permanent disability - calculate - compensation - Supreme Court - Part 2

1) C. K. Subramonia Iyer vs. T. Kunhikuttan Nair - AIR 1970 SC 376 2) R. D. Hattangadi vs. Pest Control (India) Ltd. - 1995 (1) SCC 551 3) Baker vs. Willoughby - 1970 AC 467 4) Arvind Kumar Mishra v. New India Assurance Co.Ltd. - 2010(10) SCALE 298 5) Yadava Kumar v. D.M., National Insurance Co. Ltd. - 2010 (8) SCALE 567) 5. The heads under which compensation is awarded in personal injury cases are the following : Pecuniary damages (Special Damages) (i) Expenses relating to treatment, hospitalization, medicines, transportation, nourishing food, and miscellaneous expenditure. (ii) Loss of earnings (and other gains) which the injured would have made had he not been injured, comprising : (a) Loss of earning during the period of treatment; (b) Loss of future earnings on account of permanent disability. (iii) Future medical expenses. Non-pecuniary damages (General Damages) (iv) Damages for pain, suffering and trauma as a consequence of the injuries. (v) Loss of ...
22 comments
Read more

Full & Final payment - No dues certificate - end of contract

Whether after the contract comes to an end by completion of the contract work and acceptance of the final bill in full and final satisfaction and after issuance a `No Due Certificate' by the contractor Supreme Court of India Supreme Court of India R.L. Kalathia & Co. vs State Of Gujarat on 14 January, 2011 Author: P Sathasivam Bench: P. Sathasivam, B.S. Chauhan IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. 3245 OF 2003 R.L. Kalathia & Co Appellant(s) Versus State of Gujarat .... Respondent(s) JUDGMENT P. Sathasivam, J. 1) This appeal is directed against the judgment and final order dated 07.10.2002 passed by the Division Bench of the High Court of Gujarat whereby the High Court set aside the judgment and decree dated 14.12.1982 passed by the Civil Judge, (S.D.), Jamnagar directing the State Government to pay a sum of Rs.2,27,758/- with costs and interest and dismissed the Civil Suit as well as cross objections filed by the a...
11 comments
Read more

Private Colleges Cannot Withhold Student’s Certificates For Payment Of Amount

In a significant judgement, the , has held that private self financing Colleges cannot withhold certificates of students, for payment of amount. The practise of withholding the certificates, and non-issuance of transfer certificate to students, to coerce them into meeting unconscionable demands like paying entire course fee for leaving the course midway, or to force them to serve the institution after completion of course, etc is very rampant. In clear unambiguous terms, the Court has held that such practise is illegal and opposed to public policy. Often faced with the supreme bargaining position of the Colleges, the students often execute bonds authorising colleges to do so. But, such bonds have no validity in the eyes of law. It was held that :- “The agreements obtained by the College from petitioners authorising them to withhold the certificates of the petitioners cannot be accepted as an approved social conduct and the same, in that sense, is unethical. Further, agreements of tha...
Post a Comment
Read more