- (1.) The respondent No.3 was employed in the petitioner bank and was discharged from service by an order dated 27.3.2006 on account of disciplinary action taken against him. The order of discharge indicated that he would be discharged with superannuation benefits, i.e., pension, provident fund and gratuity would be payable to the employee. Pursuant to the order of discharge, the Provident Fund, Gratuity and Leave Encashment were all processed by the petitioner and appropriate cheques were issued accordingly. On 28.11.2007 the respondent bank computed an amount of Rs.2,43,525/- towards gratuity. Another amount of Rs.72,226.74 was issued towards the provident fund and another sum of Rs.37,512.26 was issued towards pension payment.
(2.) The employee, respondent No.3, had taken various loans from the bank, which he could not repay during his service tenure. In the loan agreement executed between he employee and the bank, it was provided- "in the event of your ceasing to be in the banks service before the loan is liquidated, the balance outstanding and the interest due if any in the loan account will be adjusted out of the bank's contribution to Provident Fund payable to you/your nominee in terms of the relevant fund rules, if bank's contribution to Provident Fund and/or Gratuity and or Leave Encashment at the time of retirement. To enable the bank to receive the money from the trustee of Provident Fund and Gratuity Fund and Gratuity Fund, necessary authority letters as annexed are to be executed by you and the nominee in favour of the Bank."
(3.) The respondent No.3 consciously consented that in the event his services comes to an end and the loan amount remains outstanding, the balance amount could be adjusted from the Provident Fund, Gratuity or Leave Encashment.;