CHAIRMAN CUM MANAGING DIRECTOR MAHANADI COALFIELDS LIMITED vs SRI RABINDRANATH CHOUBEY

The Supreme Court held that the withholding of gratuity under the Payment of Gratuity Act, 1972, cannot be justified by pending disciplinary proceedings after the employee's superannuation. Citing the precedent in Jaswant Singh Gill vs. Bharat Coking Coal Ltd. (2007) 1 SCC 663, the Court emphasized that the right to gratuity is statutory and cannot be impaired by internal rules of the employer. The Court upheld the High Court's decision directing the appellant to release the gratuity amount to the respondent, establishing that disciplinary actions cannot affect gratuity post-retirement.