Karnataka HC: Workman Ineligible for Gratuity Amid Dismissal Challenge

LI Network

Published on: January 3, 2024 at 11:00 IST

The Karnataka High Court on a writ petition involving a workman’s eligibility for gratuity after being dismissed from the Karnataka State Road Transport Corporation’s service due to misconduct in 2015, affirming that an employee questioning a dismissal order cannot simultaneously claim gratuity entitlement.

Justice Jyoti Mulimani, presiding over a Single Bench, underscored, “An employee qualifies for gratuity upon superannuation, retirement, resignation, death, or total disablement due to accident. However, in this case, the workman contested the dismissal order and raised objections before the Labour Court.

Therefore, the workman’s plea for gratuity claim is untenable, given his challenge against the dismissal order. The Gratuity Authorities overlooked the fact that the workman disputed the dismissal, rendering him ineligible for gratuity.”

Additionally, the Bench deemed the workman’s application for gratuity premature.

The workman contested his dismissal before the Labour Court in Bengaluru, following a misconduct charge. The matter was disposed of in the High Court, remanded back to the Labour Court in 2023, and is currently pending adjudication. Subsequently, the workman filed a gratuity application before the Controlling Authority.

Despite the Corporation’s non-contention, the Controlling Authority determined a gratuity amount of Rs. 2,68,800/- payable to the workman. Upon the Corporation’s appeal, the Appellate Authority intervened, remitting the matter for fresh adjudication to the Controlling Authority.

After reassessment, the Controlling Authority directed the Corporation to pay the aforementioned sum per the Gratuity Regulations. The Corporation’s subsequent appeal was dismissed by the Appellate Authority, leading to the matter reaching the High Court.

Considering the circumstances, the High Court emphasized, “It is established that the workman was dismissed from service on 16.05.2015 due to misconduct towards checking officials, obstructing the checking process. He has contested this dismissal in I.D.No.40/2015 before the Labour Court, Bengaluru.”

The Court highlighted that the workman disputed the dismissal order and did not accept it.

Consequently, the Court directed the Controlling Authority to refund the deposited amount to the Corporation following the writ petition’s disposal.

Therefore, the High Court granted the writ petition, annulling the Gratuity Authorities’ orders.

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