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1986 (7) TMI 357 - KARNATAKA HIGH COURTDisciplinary action was initiated against him on the charge that the committed theft of gold in the course of his employment. Based on the report of the enquiry which found him guilty of the charge, the disciplinary authority dismissed him from service forfeiting all rights and privileges that had accrued to him from his past service. The employee thereafter moved the Assistant Labour Commissioner claiming gratuity for the services rendered by him prior to the date of termination. The employer contended that as the employee was dismissed from service after finding him guilty of theft which constitutes an offence involving moral turpitude, the gratuity payable to him stood wholly forfeited in view of Section 4(6)(b)(ii) of the Act. The Assistant Labour Commissioner held that as no show cause notice was issued to the employee the forfeiture of gratuity was wrong. The application filed by the employee was accordingly allowed and the employer was directed to pay gratuity. The matter went to Division Bench of the High Court after travelling the proper channels. The High Court held that in view of the amendment to Section 4(6) (b) an employer has to take an independent decision after termination of service of an employee as to whether gratuity payable should at all be forfeited and if so, to what extent.
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