Bank Can Withhold PF Amount Only When Actual Loss Is Proved To Be Caused By Employee: Supreme Court

The appellant employee was compulsorily retired after the disciplinary authority found him guilty of certain acts of misconduct and was also denied employer’s contribution of provident fund, gratuity, pension and leave encashment. Subsequently, he filed a writ petition before the High Court claiming the terminal benefits accruing to him which was decided in his favour but overturned by the division bench. Thereafter, the appellant approached the Supreme Court vide Civil Appeal No. 6611/2015. The Hon’ble court directed the release of provident fund and gratuity due to the employee as the bank had failed to prove the alleged loss.