Ch.Cum-Man.Director Mahanadi ... vs Rabindranath Choubey

The Supreme Court held that the withholding of gratuity under Rule 34(3) of the Conduct, Discipline & Appeal Rules, 1978, is impermissible post-superannuation, as per the Payment of Gratuity Act, 1972. The Court emphasized that the statutory right to gratuity cannot be impaired by internal rules of the employer, referencing the precedent set in Jaswant Singh Gill vs. Bharat Coking Coal Ltd. (2007) 1 SCC 663. The Court upheld the High Court's decision directing the release of gratuity to the respondent, establishing that disciplinary proceedings cannot affect gratuity post-retirement.