Nishita Mhatre, J. - (1.) Aggrieved by the judgment and order of the learned Single Judge in the writ petition preferred by the respondent employee, the appellant bank has filed the present appeal.
(2.) The respondent No. 3, the employee was appointed in service with the appellant Bank (herein after referred to as the Bank) on 4th July, 1972. He retired from service on 21st January, 2014 after completion of 41 years, 6 months and 28 days of service, on attaining the age of superannuation. Criminal proceedings were initiated against the respondent No. 3 and two other employees of the bank on 27th June, 1994 before the Special Court, Alipore. Disciplinary proceedings also commenced against respondent No. 3. The departmental enquiry resulted in a punishment being imposed on respondent No. 3 by an order dated 3rd June, 1999. The punishment of reduction of pay to four stages lower in the time scale of pay with cumulative effect was imposed on the respondent No. 3. The period for which the respondent No. 3 had to suffer the punishment expired on 29th October, 2003. All increments and promotions due to respondent No. 3 were extended to him by the bank after completion of the disciplinary enquiry. On his retirement, as his dues were not paid, the respondent No. 3 submitted a representation on 13th October, 2014 for computation of pension and payment of gratuity under the Payment of Gratuity Act, 1972. The bank informed him that it was unable to pay his gratuity in view of Regulation 46 of the Oriental Bank of Commerce (Employees) Pension Regulations, 1995 (hereinafter referred to as the Regulations) as judicial proceedings were pending against him.
(3.) The respondent No. 3 filed an application under Section 4 of the Payment of Gratuity Act (hereinafter referred to as the Act) on 27th January, 2015 before the Controlling Authority appointed under the aforesaid Act. After considering the material on record, the Controlling Authority allowed the application and directed the bank to pay a sum of Rs.10,00,000/- with simple interest @ 10% per annum in accordance with Section 7(3)(A) of the Act. The Controlling Authority did not accept the argument advanced on behalf of the bank that since judicial proceedings were pending against the employee before the C.B.I Court, Alipore, his payment of gratuity could either be withheld or forfeited.;