The Orissa High Court ruled that Cuttack Central Cooperative Bank (CCB) must release the gratuity dues of Sarojini Dei, a retired employee, which had been withheld due to her role as a loan guarantor for two individuals. The court dismissed the bank's argument that her gratuity could be forfeited due to her guarantee liabilities, which had been secured through a fixed deposit. Justice Sanjaya Kumar Mishra, in his judgment, observed that Sarojini Dei had not agreed in writing to have her gratuity adjusted against the loan dues.
Additionally, there were no provisions in Cuttack CCB's staff service rules to withhold gratuity after an employee's retirement, especially when their services were not terminated for misconduct. The judgment came after a similar ruling last month, where the court upheld the release of gratuity dues for another retired CCB employee, Nalinikanta Sarangi. Both cases involved the withholding of gratuity due to pending disciplinary or vigilance proceedings, which the court deemed unjustified in the absence of specific provisions in the bank's rules.
Around 500 retired employees from various district cooperative banks in the state, including 45 retirees from the Orissa State Cooperative Bank, are reportedly awaiting their withheld dues..