- 1 - NC: 2025:KHC:7086-DB WA No. 144 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17TH DAY OF FEBRUARY, 2025 PRESENT THE HON'BLE MR JUSTICE V KAMESWAR RAO AND THE HON'BLE MR JUSTICE T.M.NADAF WRIT APPEAL NO. 144 OF 2024 (S-RES) BETWEEN: 1. THE MANAGING DIRECTOR, STATE BANK OF INDIA, HEAD OFFICE, KEMPEGOWDA ROAD, BENGALURU-560 009. 2. THE CHIEF GENERAL MANAGER, STATE BANK OF MYSORE, HEAD OFFICE, KEMPEGOWDA ROAD, BENGALURU-560 009. APPELLANTS NO.1 AND 2 ARE REP. BY SRI. P.K.RAMAMOORTHY, ASST. GENERAL MANAGER (PPG). …APPELLANTS (BY SRI.T.P.MUTHANNA., ADVOCATE) AND: SRI. M.T.VENKATASHIVA REDDY, S/O LATE THIMMI REDDY, AGED ABOUT 77 YEARS, CHIEF MANAGER (RETIRED), STATE BANK OF MYSORE, Digitally signed by K G RENUKAMBA Location: High Court of Karnataka - 2 - NC: 2025:KHC:7086-DB WA No. 144 of 2024 R/AT NO E1/16, 1ST CROSS, SYNDICATE BANK COLONY, BANNERGHATTA ROAD, BENGALURU-560 076. …RESPONDENT (BY SRI.NAGENDRA NAIK., ADVOCATE) THIS WRIT APPEAL IS FILED U/S 4 OF THE KARNATAKA HIGH COURT ACT, PRAYING TO CALL FOR THE RECORDS AND TO SET ASIDE THE ORDER DATED 07.09.2023 PASSED BY THE LEARNED SINGLE JUDGE IN WRIT PETIITON NO. 8214/2011 (S-RES) ETC. THIS APPEAL COMING ON FOR ORDERS ALONG WITH IA NO.2/2024 FOR STAY THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE V KAMESWAR RAO AND HON'BLE MR JUSTICE T.M.NADAF ORAL JUDGMENT (PER: HON'BLE MR JUSTICE V KAMESWAR RAO) The challenge in this intra-court appeal is to an order dated 07.09.2023 passed by the learned Single Judge in Writ Petition No.8214/2011 (S-RES), whereby the learned Single Judge has allowed the writ petition filed by the respondent herein by stating in Paragraph-9 as under:- “9. In the present case, since, admittedly, there is no order of conviction passed against the - 3 - NC: 2025:KHC:7086-DB WA No. 144 of 2024 petitioner and thus, the Bank could not have passed an order of forfeiture of gratuity. The Bank appears to have taken the view that it was entitled to forfeit the gratuity because the enquiry report indicated that a financial loss had been caused to the Bank. As already indicated above, Section 4(6)(b)(ii) of the Payment of Gratuity Act, 1972 provides for forfeiture only if the employee was convicted for an offence involving moral turpitude and terminated. Since there is no such conviction in the present case, the impugned order forfeiting the gratuity of the petitioner cannot be sustained and the same is accordingly quashed. The respondent-Bank is directed to pay the gratuity amount of Rs.6,84,764/- to the petitioner within a period of two weeks from the date of receipt of a copy of this order. The writ petition is accordingly allowed.” 2. During the course of hearing, we have been informed that the respondent has been convicted by the Criminal Court vide judgment dated 06.02.2025. If that be so, the order of the learned Single Judge for the release of the Gratuity in favour of the respondent, cannot be sustained. This aspect is also acknowledged by the counsel - 4 - NC: 2025:KHC:7086-DB WA No. 144 of 2024 for the respondent. He only states that, in the eventuality, the respondent files an appeal against the order of the learned Sessions Judge dated 06.02.2025 in Special C.C. No.41/2012 and the respondent is exonerated of the charges, liberty be granted to the respondent to make a representation to the Bank for the release of the Gratuity. 3. Learned counsel for the appellants has no objection on this submission made by the learned counsel for the respondent. If that be so, the impugned order of the learned Single Judge dated 07.09.2023 is set aside. In the eventuality, the respondent is exonerated in an appeal to be filed by him against the order of the Criminal Court dated 06.02.2025 in Special CC No.41/2012, liberty shall be with the respondent to make a representation to the Bank for release of the Gratuity and the same shall be considered by the Bank, which shall pass necessary orders in accordance with law. 4. The appeal is allowed on the above terms. - 5 - NC: 2025:KHC:7086-DB WA No. 144 of 2024 5. In view of disposal of the appeal, pending IA No.2/2024 is disposed of as infructuous. Sd/- (V KAMESWAR RAO) JUDGE Sd/- (T.M.NADAF) JUDGE KGR* List No.: 1 Sl No.: 14