Irrevocable gratuity fund protection: fund may be wound up only on employer business discontinuance, not by trustees' resolution. Winding up of an approved irrevocable gratuity trust fund is permitted only when necessitated by the winding up, discontinuance, amalgamation, or cessation of the employer's trade or undertaking; trustee or beneficiary resolutions cannot revoke or wind up the fund while the employer's business continues. Employer contributions remain free of employer interest while held as a gratuity fund; repayment to the employer is treated as employer income and is permissible only to the extent gratuity payable to employees is lawfully forfeited under the Payment of Gratuity Act.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Irrevocable gratuity fund protection: fund may be wound up only on employer business discontinuance, not by trustees' resolution.
Winding up of an approved irrevocable gratuity trust fund is permitted only when necessitated by the winding up, discontinuance, amalgamation, or cessation of the employer's trade or undertaking; trustee or beneficiary resolutions cannot revoke or wind up the fund while the employer's business continues. Employer contributions remain free of employer interest while held as a gratuity fund; repayment to the employer is treated as employer income and is permissible only to the extent gratuity payable to employees is lawfully forfeited under the Payment of Gratuity Act.
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