Chairman Cum Managing Director ... vs Sri Rabindranath Choubey

The Supreme Court held that under Rule 34.3 of the Conduct, Discipline & Appeal Rules, 1978, an employer can withhold gratuity during the pendency of disciplinary proceedings initiated while the employee was in service. The Court clarified that such proceedings can continue post-superannuation, and the employer is entitled to recover any pecuniary loss caused by the employee's misconduct as per Section 4(6) of the Payment of Gratuity Act, 1972. The Court upheld the employer's decision to withhold gratuity, affirming the legality of the disciplinary process.