In Brief
This case concerned whether an employer can withhold an employee's gratuity after superannuation due to pending disciplinary proceedings initiated during service. The employee challenged the withholding as improper. The Supreme Court held that disciplinary proceedings initiated while an employee is in service can continue and conclude even after the employee's retirement or superannuation. A major penalty including dismissal can be imposed post-retirement if the proceedings were started during service. Consequently, gratuity can be withheld under section 6 of the Payment of Gratuity Act until the disciplinary process is concluded. The Court set aside the High Court's judgment and directed the disciplinary authority to expeditiously complete the proceedings.
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