Y.K. Singla vs Punjab National Bank & Ors

The Supreme Court ruled that the withholding of gratuity, leave encashment, and pension benefits under Section 4 of the Payment of Gratuity Act, 1972, is permissible only if the employee is convicted of an offense involving moral turpitude. The Court held that since the appellant Y.K. Singla was acquitted of charges under Section 120B IPC and Section 5(2) read with Section 13(1)(d) of the Prevention of Corruption Act, 1988, the withholding of his benefits was unjustified. Consequently, the Court directed the Punjab National Bank to release the withheld amounts to the appellant.