The Bombay High Court, in a judgment delivered by Justice M. S. Jawalkar, held that the Payment of Gratuity Act, 1972 applies to Zilla Parishad (district council) employees unless they are expressly exempted under Section 5. The case involved Mr. Ganesh Navale, a district council employee who retired on January 31, 2020, and was entitled to gratuity. Although the employer withheld the payment citing a prior departmental inquiry and his reduced pay, the court ruled that such actions do not justify withholding gratuity under Section 4(6), which permits forfeiture only for grave misconduct like dismissal, not minor disciplinary penalties. As no dismissal or serious misconduct occurred, and without any official exemption issued under Section 5, the Act overrides the Maharashtra Civil Services (Pension) Rules. The court dismissed the Zilla Parishad’s writ petition and ordered the immediate release of ₹18.33 lakh with interest to Mr. Navale.

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