P&H: Upholds Forfeiture of Bank Employee’s Gratuity After Corruption Conviction

punjab-haryana
⚖️ Order Date: 22 Sep 2026
Headnotes

(1) Payment of Gratuity Act, 1972, S.4(6)(b)(i) and 4(6)(b)(ii) — Forfeiture of gratuity — An employee’s gratuity may be wholly or partially forfeited if his services are terminated for an act constituting an offence involving moral turpitude committed in the course of employment. (Para 7)

(2) Prevention of Corruption Act, 1988, Payment of Gratuity Act, 1972, S.4(6)(b)(i) and 4(6)(b)(ii) — Conviction — Moral turpitude — Since petitioner was convicted under Prevention of Corruption Act, which constitutes moral turpitude, order forfeiting his gratuity was valid and legal. — Petitioner was held entitled to leave encashment...


Facts of the Case

P&H: Upholds Forfeiture of Bank Employee’s Gratuity After Corruption Conviction

The Punjab and Haryana High Court has upheld the forfeiture of gratuity payable to a former Union Bank of India employee who was convicted under Section 7 of the Prevention of Corruption Act, 1988. The Court, however, directed the Bank to grant him leave encashment for 240 days with 9% annual interest.

Justice Sude epti Sharma was hearing a writ petition filed by J.K. Nehray against Union Bank of India and its officials. The petitioner had challenged orders forfeiting Rs 2,19,300 from his gratuity and had also sought payment of leave encashment and other retiral benefits.

The petitioner submitted that...

Login required to open full judgment PDF
Login to Access File