In Brief
A bus conductor was dismissed for allegedly collecting fares without issuing tickets. The Labour Court found the domestic inquiry perverse and set aside the dismissal, awarding back wages (50%) and service benefits. The High Court modified the award, denying gratuity on the ground that the misconduct involved moral turpitude. The Supreme Court allowed the appeal, holding that denying gratuity requires not merely misconduct involving moral turpitude, but proof that the termination was actually on account of such misconduct. Since the inquiry was found perverse and the management failed to prove misconduct, the employee was entitled to all service benefits including gratuity.
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