Payment of Gratuity Act 1972 - Forfeiture of Gratuity

Quarter not vacated- can not be forfeited:

Payment of Gratuity Act 1972 - Section 4(6) - Gratuity- Withholding of- Because company quarter not vacated- recovery notice- once controlling authotity passed the order under the Act- It is bounden duty to recover the said amount for which recovery notice are issued - Hence impugned recovery notices cannt be illegal.- amount of gratuity can be forfeited only as provided under Section 4(6) of Act. But the petitioner as never challanged the original order - Hence all petitioner fail and deserve to be dismissed. Special Civil Appeal No. 17105 and 17111 of 2003 : Jehangir Textile Mills V/s Sahebsingh Chotesingh and another, decided on 05-10-2010 by Gujarat High Court. [2011 (128) FLR 180]

Can be forfeited on Dismissal:

Payment of Gratuity Act 1972 Section 4(6) and Rule 18 of Bank PF Rules - Forfeiture of Gratuity- Petitioner, an employee of bank- Dismissed from service- For misconduct of causing loss to bank- In view of Section 4(6) of Act and rule 18 of the Rules, bank has rightly forfeited the amount of gratuity adn deducted the contribution of employer. OOCJ WP no. 636 of 2002 : Ramchandra S. Joshi V/s Bank of Baroda, Decided on 05-04-2010 by Bombay High Court.