Bank withholds retired employee’s gratuity for someone else’s loan default; she wins in Odisha High Court
A bank employee's gratuity was wrongly withheld after she acted as a guarantor of someone else's loan and that person defaulted on the loan. The bank argued she was equally liable. However, the Odisha High Court ruled in her favor. The court stated gratuity is a deferred salary and cannot be forfeited.