LAWS(SC)-2025-2-66

WESTERN COAL FIELDS LTD. Vs. MANOHAR GOVINDA FULZELE

Decided On February 17, 2025
WESTERN COAL FIELDS LTD. Appellant
V/S
Manohar Govinda Fulzele Respondents

JUDGEMENT

(1.) Leave granted.

(2.) The question raised in the above cases is the permissibility of forfeiture of gratuity, in the event of termination of service on misconduct, which can be categorised as an act constituting an offence involving moral turpitude; without there being any conviction in a criminal case or even a criminal proceeding having been initiated.

(3.) The appellant in one of the appeals is a Public Sector Undertaking, [For brevity 'PSU'] on whose behalf learned Solicitor General Mr. Tushar Mehta appears. The other appeals are by the Maharashtra State Road Transport Corporation [For brevity 'MSRTC'] for whom Ms. Mayuri Raghuvanshi, learned Standing Counsel appears. Impugned judgments found the forfeiture of gratuity to be not permissible under the Payment of Gratuity Act, 1972 (the Act) relying on the decision of this Court in Union Bank of India and Ors. vs. C.G. Ajay Babu3. On behalf of the contesting respondent in the appeal filed by the PSU, Mr. Shivaji M. Jadhav appears to defend the reasoning in the judgment and none appears for the respondent in the appeals filed by the MSRTC; though served with notice.