SC directs PNB to release provident fund and gratuity to retired employee, reversing High Court’s verdict.
In a landmark judgment, the Supreme Court has mandated Punjab National Bank to disburse the provident fund and gratuity to a former employee who faced compulsory retirement without a fair hearing.
DESK -The Supreme Court has sided with a bank employee over Punjab National Bank (PNB), ordering the release of provident fund and gratuity.
The apex court’s verdict highlighted the absence of proof of loss caused by the employee’s actions.
The bench criticized PNB’s lack of fair hearing prior to the resolution on fund appropriation.
Justice JK Maheshwari and Justice K.V. Vishwanathan reversed the Calcutta High Court’s judgment.
The employee, a Senior Manager, was compulsorily retired in 2010 without proven financial loss to PNB.
The High Court’s 2012 verdict directed PNB to pay the employee’s provident fund and gratuity.
The Supreme Court upheld the employee’s right to provident fund contributions and gratuity payments.
The bench clarified that compulsory retirement doesn’t justify the denial of gratuity, as per the 1979 Regulations.
The court emphasized the need for a fair hearing before gratuity forfeiture, aligning with the UCO Bank case precedent.
The Supreme Court’s comprehensive review validated the Single Judge’s decision and nullified the Division Bench’s findings.
