JUDGEMENT
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(1.) The subject-matter of challenge in this writ petition is an order dated 6th
December, 1987 passed by the Controlling Authority under the Payment of
Gratuity Act, 1972 and an order passed by the Appellate Authority dated 10th
January, 1994 copies whereof are Annexures 'G' and 'J' to the writ petition
respectively. The Controlling Authority held that the gratuity forfeited by the writ
petitioner was payable to the workman. The appellate authority did not interfere.
Briefly stated the facts are as follows.
(2.) The respondent No.1 was charge-sheeted for fraud, dishonesty, acting
in a manner prejudicial to the interest of the Company and acts subversive of
good conduct and behaviour. After a domestic enquiry he was dismissed from
service on 22nd December, 1983. The writ petitioner forfeited the gratuity payable
to the respondent No. 1 on the ground that the misconduct of the respondent
No.1 was grave and involved moral turpitude. The respondent No.1 challenged
the decision of the writ petitioner before the Controlling Authority. The Controlling
Authority by the aforesaid order directed the writ petitioner to pay the gratuity
along with interest amounting to a sum of Rs.48,111/- together with interest at
the rate of 9 per cent from the date the gratuity became payable until the date of
payment. The gratuity was forfeited by the writ petitioner under the provisions of
Clause II of sub-section 6 of Section 4 of the Payment of Gratuity Act, 1972
which provides as follows:-
Section 4(6) "Notwithstanding anything contained in sub-
section (1)-
(a) The gratuity of an employee, whose services have been
terminated, for wilful omission or negligence causing any damage or loss
to, or destruction of, property belonging to the employer, shall be fortified
to the extent of the damage or loss so caused;
(b) The gratuity payable to an employee may be wholly or partially
forfeited-
(i) If the services of such employee have been terminated for his
riotous or disorderly conduct or any other act of violence on his part, or
(ii) If the services of such employee have been terminated for any
act which constitutes an offence involving moral turpitude, provided that
such offence is committed by him in the course of his employment."
(3.) The Controlling Authority in its judgment dated 6th May, 1987 appears
to have formulated the following points:-
"(i) Whether the charges of misconduct, resulting into applicant's
dismissal, involved moral turpitude?
(ii) Whether the employer was correct in forfeiting gratuity amount
to which the applicant was entitled, as per Section 4(6)(b)(ii) of the Act?
If not, to
(iii) What would be the gratuity amount payable?";
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