Mohindra had joined PZ India Ltd. in 1994. After attaining of age of superannuation, he retired from the organization. PZ India Ltd. had allotted him residential facility in quarters of the organization. As per the polic

(i) Section 4(6)(b) of the Payment of Gratuity Act, 1972 deals with a case where the services of an employee have been terminated: (a) for riotous and disorderly conduct or any other act of violence on his part, or (b) for any act which constitutes an offence involving moral turpitude provided that such offence is committed by him in the course of his employment. In such cases the gratuity payable to the employee may be wholly or partially forfeited. Where the service has not been terminated on any of the above grounds, the employer cannot withhold gratuity due to the employee. Where the land of the employer is not vacated by the employee, gratuity cannot be withheld ( Travancore Plywood Ind. v. Regional JLC, Kerala, 1996 LU-II-14 Ker. ). Assignment of gratuity is prohibited, it cannot be withheld for non-vacation of service quarters by retiring employees ( Air India v. Authority under the Act, 1999 CLA 34 Born. 66 ). In view of the above gratuity cannot be withheld by PZ India Ltd. (ii) Section 8 of the Payment of Gratuity Act, 1972 provides that if the gratuity payable under the Act is not paid by the employer within the prescribed time, the Controlling Authority shall, on an application made to it in this behalf by the aggrieved person, issue a certificate for that amount to the Collector, who shall recover the same together with the compound interest thereon at such rate as the Central Government may be notification, specify, from the date of expiry of the prescribed time, as arrears of land revenue and pay the same to the person entitled thereto: "Provided that the controlling authority shall, before issuing a certificate under this section, give the employer a reasonable opportunity of showing cause against the issue of such certificate: Provided further that the amount of interest payable under this section shall, in no case, exceed the amount of gratuity payable under this Act"