THE MANAGEMENT, THOOTHUKUDI DISTRICT CENTRAL CO Vs. THE APPELLATE AUTHORITY, UNDER PAYMENT OF GRATUITY ACT AND OTHERS

JUDGEMENT

(1.) The petitioner is a co-operative bank. The third respondent was employed under the petitioner bank and he retired from service on 31.05.2011. Since his gratuity dues were not settled, he moved the controlling authority. The controlling authority allowed the application filed by the third respondent and directed the petitioner bank to pay a sum of Rs. 10.00 lakhs with interest. The said order was confirmed by the appellate authority also. Questioning the same, the bank/management has come before this Court.

(2.) The stand of the petitioner bank is that the third respondent has to pay a sum of Rs. 4,81,901/- and that the said amount has been adjusted and set off against the gratuity dues. The approach of the writ petitioner cannot be countenanced. section 4(6)(a) of the Payment of Gratuity Act, 1972 enables the employer to withhold the gratuity amount payable to the employee if his services have been terminated for the reasons set out in the statutory provision itself.

(3.) In this case, the third respondent is not a terminated employee. No contemporaneous order has been passed against the third respondent providing for setting of the gratuity amount against the dues payable to the third respondent. Therefore, the act of withholding by the management cannot be sustained with reference to any provisions of law set out under the Payment of Gratuity Act, 1972. In this view of the matter, the orders passed by the respondents 1 and 2 are clearly sustainable.