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    <title>2006 (11) TMI 550 - Supreme Court</title>
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    <description>The Payment of Gratuity Act, 1972 was treated as a beneficial welfare statute creating a statutory vested right to gratuity, and its scheme for payment and forfeiture prevailed over non-statutory service rules; the employer could not curtail gratuity by relying on the Coal India Executives&#039; Conduct Discipline and Appeal Rules, 1978. Gratuity could be forfeited only on strict compliance with Section 4(6), including termination of service for the specified misconduct and, where applicable, quantification of loss or damage caused; because those statutory preconditions were not met, forfeiture was impermissible. The refusal to deny gratuity was therefore upheld, and the employee remained entitled to gratuity with consequential reliefs.</description>
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    <pubDate>Fri, 10 Nov 2006 00:00:00 +0530</pubDate>
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      <title>2006 (11) TMI 550 - Supreme Court</title>
      <link>https://www.taxtmi.com/caselaws?id=162055</link>
      <description>The Payment of Gratuity Act, 1972 was treated as a beneficial welfare statute creating a statutory vested right to gratuity, and its scheme for payment and forfeiture prevailed over non-statutory service rules; the employer could not curtail gratuity by relying on the Coal India Executives&#039; Conduct Discipline and Appeal Rules, 1978. Gratuity could be forfeited only on strict compliance with Section 4(6), including termination of service for the specified misconduct and, where applicable, quantification of loss or damage caused; because those statutory preconditions were not met, forfeiture was impermissible. The refusal to deny gratuity was therefore upheld, and the employee remained entitled to gratuity with consequential reliefs.</description>
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