In Brief
Lalit Popli, a bank clerk, was dismissed for fraudulently withdrawing Rs.1,07,000 from a customer's account. The bank withheld his gratuity and provident fund (Rs.1,08,923) and recovered Rs.1,07,000 as compensation for the loss caused by his forgery. Although three other employees found negligent in the same incident had amounts recovered and later refunded to them, the High Court set aside the bank's recovery order against Popli, deeming it "double enrichment." The Supreme Court held that statutory rules explicitly permit banks to recover financial losses caused by dismissed employees' misconduct from their terminal benefits. Popli's fraudulent conduct distinguished his case from the negligent employees, justifying full recovery from his gratuity and provident fund. The appeal was allowed.
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