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Gratuity can be withheld for recovery of dues: Supreme Court


Cinosural International An Elementry School Jammu

New Delhi: A bench headed by Justice Sanjay K Kaul in Supreme Court while hearing a SLP said that gratuity money of an employee can be withheld and forfeited in case of recovery of dues such as overstaying in official accommodation.

The bench further held that there is no prohibition against recovering dues including penal rent, the rent with the penalty for overstaying in official accommodation from an employee’s gratuity.

A Division Bench had in 2017 ruled unfavourably against confiscating the gratuity of an employee on account of overstaying in official quarters after his retirement & the Bench had ordered immediate release of his gratuity and held only normal and not penal rent should be charged for the period overstayed.

The Bench headed by Justice Kaul, however, held that any reliance on the 2017 order is misplaced since it is not even a judgment, but just an order on the given facts of that case. The 2017 order cannot be treated as a precedent, the Supreme Court also said.

 

 


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