Orissa high court junks bank’s plea to withhold retired staff’s gratuity

The Orissa High Court has upheld a single judge’s order, dismissing a writ petition by Cuttack Central Co-operative Bank Ltd. The court ruled that an employee’s gratuity cannot be withheld due to their role as a loan guarantor for a defaulting third party. Gratuity is considered a deferred salary, payable upon superannuation, and its forfeiture is strictly governed by law.