CLC circular · 27 Nov 2025
Official title
Compendium of Court Cases-PG Act
Summary
Check the official recordThe Office of the Chief Labour Commissioner (Central) has issued a compendium of relevant court cases concerning the Payment of Gratuity Act, 1972. The document highlights two key judicial developments. First, in Hemlata Sharma vs. Vandana Tripathi & Ors., the Rajasthan High Court clarified that a nominee in an insurance policy acts as a trustee for legal heirs and does not hold absolute ownership; therefore, a mother as a Class I legal heir is entitled to her share of the proceeds. Second, in Western Coal Fields Ltd. vs. Manohar Govinda Fulzele & Anr., the Supreme Court ruled that forfeiture of gratuity under Section 4(6)(b)(ii) of the Act for misconduct involving moral turpitude does not require a prior criminal conviction, provided the misconduct is established in a departmental inquiry.
What you must do
OFFICE OF THE CHIEF LABOUR COMMISSIONER(CENTRAL), NEW DELHI
SECTION-LS SECTION
COMPENDIUM OF RELEVANT COURT CASES FOR REFERENCE OF OUR OFFICERS
| Sl.No. | Act | In the matter of | Subject |
|---|---|---|---|
| 1. | The Payment of Gratuity Act, 1972 | In the matter of nominee/ legal heir/ successor | S.B. Civil Misc. Appeal No. 1973/2024 filed by Hemlata Sharma vs Vandana Tripathi and 7 others in the High Court of Judicature for Rajasthan at Jaipur. |
| 2. | The Payment of Gratuity Act, 1972 | In the matter of forfeiture of gratuity on the grounds of moral turpitude. | Civil Appeal No. 2608 of 2025 filed by Western Coal Fields Ltd. Vs Manohar Govinda Fulzele & Anr. in the Supreme Court of India. |
[2025:RJ-JP:18282]
HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR
S.B. Civil Miscellaneous Appeal No. 1973/2024
Hemlata Sharma Wife Of Satish Chand Sharma, Aged About 63 Years, Resident Of House No. 446, Ekta Nagar-A, Heerapura, Ajmer Road, Jaipur (Raj.).
----Appellant
Versus
----Respondents
For Appellant(s) : Ms. Sampti Sharma For Respondent(s) : Mr. Ajay Kumar Tanenia- No.4 Mr. Gauri Jasana for Mr. Prateek Kasliwal-No.5
HON'BLE MR. JUSTICE GANESH RAM MEENA
Judgment
Date of Reserve ::: April 28, 2025 Date of Pronouncement ::: May 16, 2025
[2025:RJ-JP:18282] (2 of 20) [CMA-1973/2024]
REPORTABLE
The challenge has been made to the order dated 15.04.2024 to the extent of dismissal of the claim of the appellant of 1/3rd share as regards the amount of the Insurance Policies in the name of the deceased Anand Dadhich, who is the son of the appellant and allowing the succession of respondents No.1 and 2 over the said Policies.
[2025:RJ-JP:18282] (3 of 20) [CMA-1973/2024]
named Charchit Dadhich (respondent No.2) from their wedlock. It was further stated that Anand Dadhich expired on 25.06.2021 and after his death his first category successors are the appellant as well as respondents No.1 and 2. It was further stated that the deceased son of the appellant Anand Dadhich was having certain Insurance Policies and Savings Bank Account in the State Bank of India, Chitrakut Branch, Jaipur and also having FDRs of the Bank of Baroda. Deceased Anand Dadhich had not executed any will in favour of any person and therefore, the appellant as well as respondents No.1 and 2 being the first category successors, sould get to hold 1/3rd share each in succession out of the Insurance Policies, Savings and the FDRs.
[2025:RJ-JP:18282] (4 of 20) [CMA-1973/2024]
It was further stated that when the appellant as well as respondents No.1 and 2 moved separate applications for claiming the amount in the Savings Account, FDR as well as the maturity claim of the Policies in the name of Anand Dadhich, the concerned authorities asked the appellant as well as respondents No.1 and 2 to get the succession certificate from the Competent Court.
The learned court below framed three issues. After recording the evidence of the parties, the court below disposed of the application for succession certificate vide order dated 15.04.2024 holding that the appellant is entitled to get 1/3rd share of the amount in the Savings Account of deceased- Anand Dadhich and so also in the amount of the FDR, however, dismissed the succession certificate as regards the maturity claim of the Insurance Policies in the name of the deceased son- Anand Dadhich.
Counsel for the appellant submits that the appellant being the first category successor along-with respondents No.1 and 2, is also entitled to get 1/3rd share in the maturity claim of the Policies in the name of deceased son- Anand Dadhich. He further submits that merely because respondent No.1 has been the nominee, the claim of the appellant cannot be discarded. Counsel for the appellant also
[2025:RJ-JP:18282] (5 of 20) [CMA-1973/2024]
submits that the nominee is appointed to collect the benefits but the actual beneficiaries would be all the successors.
No-one has put in appearance on behalf of respondents No.1 and 2 and appearance has only been given by the counsels appearing for respondents No. 4 and 5.
Counsel appearing for respondent No.5- Max Life Insurance Pvt. Ltd. submits that they have already disbursed the maturity claim of the Insurance Policy issued by them on the basis of the succession certificate dated 15.04.2024.
Counsel appearing for respondent No.4- Life Insurance Corporation submits that they have not yet disbursed the maturity claim of the Polices in the name of deceased- Anand Dadhich.
The only issue which requires consideration by this Court is ‘Whether the Nominee, as mentioned in the Insurance Policy, is alone entitled to seek the benefits arising out of the Insurance Policy or the Successors of the person in whose name the Insurance Policy was issued, will get the fruits in equal share?’ The appellant is the mother of deceased- Anand Dadhich in whose name the Insurance Policies were issued and respondent No.1- wife of Anand Dadhich was nominated as a Nominee.
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