SRINAGAR, June 27: Observing that mere recovery proceedings against the borrower is no justification for the bank to withhold post retiral benefits of its employee, HC of J&K and Ladakh has directed release of gratuity with interest in favour of petitioner.
Justice Moksha Kazmi allowed the plea of one Kamaljeet Gupta seeking release of his gratuity. The petitioner-Gupta, while serving as a Branch Manager in the respondent-Grameen Bank, sanctioned a personal consumption loan in favour of one Aman Kumar Gupta (Borrower) in 2014.
The loan account of the borrower subsequently became a Non-Performing Asset (NPA), due to the borrower’s default in repayment. Gupta attained the age of superannuation and retired from service in January 2016.
However, the bank withheld his gratuity amounting to Rs 8,12,063 with the information to him that his gratuity had been withheld due to the loan account turning Non-Performing Asset (NPA) and that the loan had been sanctioned by him without adhering to the requisite procedural guidelines.
“Mere pendency of a civil suit for recovery against the borrower cannot, by any stretch of reasoning, justify the withholding of gratuity legally due to the petitioner. The suit pertains solely to the liability of the borrower and does not involve any adjudication of misconduct on the part of the petitioner”, Justice Kazmi said.
The court has held the action of the respondent-bank by withholding the gratuity of the petitioner as illegal, arbitrary, and unsustainable in law. “It violates the mandate of the Payment of Gratuity Act and the fundamental rights of the petitioner under Articles of 14 and 300-A of the Constitution”, the court further added.
Accordingly, the court allowed the plea of the retired employee with the direction to the respondent-bank to release the withheld gratuity amount in favour of the petitioner along with interest @6 percent per annum on the amount from the date of retirement till the date of actual payment.
“The respondent-bank shall do the needful within six weeks from the date, a copy of this judgment is supplied to it, failing which, the amount shall carry interest @9 percent per annum from the expiry of the period till final payment. It is made clear that this judgment will not affect the pending civil suit for recovery against the borrower, and the bank is at liberty to prosecute the same in accordance with law”, the court further directed.
The court further said that none of the statutory conditions have been fulfilled by the bank while withholding the retiral benefits of the employee as he retired upon superannuation and was not terminated on account of any misconduct.
“No disciplinary inquiry has been initiated or concluded to prove any negligence or intentional wrongdoing by the petitioner. In view of the above, the answer to the issues raised by the bank is not justified in withholding the petitioner’s gratuity in the absence of any disciplinary proceedings or proven misconduct”, reads the judgment.
