Tag: Gratuity

Can’t Withhold Pension for Not Vacating Govt Quarter: Supreme Court Rules for Employee
13Nov By The Legal ChamberNo Comments
Supreme Court

Can’t Withhold Pension for Not Vacating Govt Quarter: Supreme Court Rules for Employee

This Supreme Court judgment reaffirms that pension and retiral dues are a statutory right, not a bounty, and cannot be withheld by the employer. The Court held that non-vacation of a government residence is not a valid justification for withholding such dues, as the right to pension is distinct from the right to occupation of service accommodation. Facts Of The Case: The respondent, a state government employee since 1980, superannuated on 30th June 2013, but his pension and retiral dues were not sanctioned or paid. Subsequently, the appellant department passed an order quashing his earlier pay revision and refixing his salary to a lower scale. This refixation was challenged and later withdrawn by the department, but the retiral dues remained unpaid, ostensibly because the respondent had ...
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Landmark Ruling: Supreme Court Clarifies Scope of Judicial Review in Employee Disciplinary Matters
27Oct By The Legal ChamberNo Comments
Supreme Court

Landmark Ruling: Supreme Court Clarifies Scope of Judicial Review in Employee Disciplinary Matters

This Supreme Court judgment reiterates the limited scope of judicial review in disciplinary proceedings. Courts cannot act as appellate authorities to re-appreciate evidence. The standard of proof is preponderance of probability, not strict evidence rules. Interference is only permissible if the finding is perverse, based on no evidence, or violates natural justice. The Tribunal exceeded its jurisdiction under Section 11-A of the Industrial Disputes Act by doing so. Facts Of The Case: The respondent, Ganganarasimhaiah, was a Sub-Staff employee at Canara Bank's V.G. Doddi branch. An investigation revealed serious irregularities, including unauthorized loans and tampering with bank records. Specifically, it was alleged that he facilitated loans for his wife and father without the man...
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Supreme Court: Delayed Payment Not Always Contempt, But Bank Must Pay for Protracted Litigation
20Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court: Delayed Payment Not Always Contempt, But Bank Must Pay for Protracted Litigation

The Supreme Court declined to initiate contempt proceedings, finding the delayed payment of dues, while a violation, was not wilful. It reinforced that contempt jurisdiction cannot be used to adjudicate new claims like pension, which were not part of the original decree. The Court, however, awarded compensatory costs for the protracted litigation. Facts Of The Case: A.K. Jayaprakash, a manager at Nedungadi Bank Ltd., was dismissed from service in 1985 on grounds of alleged irregularities in sanctioning loans and delays in reporting. He challenged this dismissal under the Tamil Nadu Shops and Establishment Act, 1947. The Deputy Commissioner of Labour initially set aside the dismissal and ordered his reinstatement. This decision was repeatedly challenged by the Bank, first in the Madras Hi...
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Supreme Court Curbs “Prove Prejudice” Rule: A Landmark Win for Natural Justice
19Sep By The Legal ChamberNo Comments
Supreme Court

Supreme Court Curbs “Prove Prejudice” Rule: A Landmark Win for Natural Justice

The Supreme Court ruled that violating mandatory procedural safeguards in disciplinary inquiries, like failing to question an employee on adverse evidence, inherently constitutes prejudice. Relying on undisclosed material, such as a vigilance report, to enhance punishment also violates natural justice. No independent proof of prejudice is required for such fundamental breaches. Facts Of The Case: The appellant, K. Prabhakar Hegde, was a senior officer and Zonal Head of Vijaya Bank (which later merged with Bank of Baroda). In 1999, he was served with notices alleging irregularities in sanctioning temporary overdrafts to various parties. Formal disciplinary proceedings were initiated against him in 2001. An inquiry officer was appointed, who submitted a report holding the charges proved. N...
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