Y.K. SINGLA vs PUNJAB NATIONAL BANK .

The Supreme Court ruled that the withholding of gratuity, leave encashment, and pension benefits under Section 4 of the Payment of Gratuity Act, 1972, due to pending criminal proceedings, is permissible only if the employee is convicted. The Court emphasized that mere pendency of proceedings does not justify withholding benefits, as the trial court had acquitted the appellant of all charges under Section 120B IPC and Section 5(2) read with Section 13(1)(d) of the Prevention of Corruption Act, 1988. Consequently, the Court directed the Punjab National Bank to release the withheld benefits to the appellant.