HC upholds order to co-op bank to pay retd staff’s gratuity

Cuttack: Orissa high court has dismissed a petition filed by Cuttack Central Cooperative Bank (CCCB) challenging the order of the joint labour commissioner-cum-appellate authority, Bhubaneswar, directing it to pay Rs 9,79,054 towards gratuity to Nalinikanta Sarangi, who had retired from the bank more than 11 years back.
“This court is of the view that the appellate authority passed a well-discussed and reasoned order dealing with all the points raised in the appeal, and there is no infirmity or illegality in the impugned judgment dated March 28, 2022, passed by it under the Payment of Gratuity Act, 1972,” said Justice Sanjay Kumar Mishra.
According to the case records, Sarangi had committed various irregularities and also misappropriated public money, for which he was charge-sheeted many times during his tenure.
On June 29, 2011, the state vigilance initiated a case against Sarangi under the Prevention of Corruption Act for alleged misappropriation of funds by tampering with records. The case is still pending against him in the vigilance court.
Sarangi retired from service on Feb 28, 2013. When CCCB did not release his gratuity amount, citing the vigilance case, he filed an appeal before the divisional labour commissioner (controlling authority under the Act) claiming Rs 6,17,513 towards gratuity and interest.
On Jan 13, 2020, the controlling authority directed CCCB to pay Rs 9,79,054 to Sarangi which was subsequently endorsed by the joint labour commissioner-cum-appellate authority, Bhubaneswar.
While dismissing CCCB’s plea, Justice Mishra noted that under the 1972 Act, the employer is only entitled to forfeit the gratuity of an employee partially or wholly if the employee’s service was terminated. “Since the petitioner was allowed to retire from service on attaining the age of superannuation, CCCB has no authority under law to withhold or forfeit his gratuity.”