43 mins ago
Bombay High Court Orders Trust To Pay ₹11.67 Lakh Gratuity
Rajesh Somnath Nerkar worked at a swimming club for 23 years.
The club dismissed him after accusing him of damaging important membership records.
Nerkar asked for gratuity, which is money paid for long service.
A government authority ordered the club to pay him ₹11.67 lakh plus interest.
The club challenged that order in the Bombay High Court.
The court said the club had received proper notices and had missed its legal opportunities.
It also said the club had not followed the required process to take away the gratuity.
The court ordered payment within six weeks and added ₹1 lakh in legal costs.
The Bombay High Court upheld an order requiring Breach Candy Swimming Bath Trust to pay former manager Rajesh Somnath Nerkar ₹11,67,785 in gratuity.
Nerkar worked for the Trust for 23 years before his services were terminated on July 2, 2023.
The Trust alleged that Nerkar shredded original membership records and caused losses of ₹5 crore.
Justice Sandeep Marne rejected the Trust’s objections over notice and its late challenge to the gratuity order.
The Trust was directed to pay the gratuity, 10% interest, and ₹1 lakh in costs within six weeks.
- Who
- The Bombay High Court, Breach Candy Swimming Bath Trust, and former manager Rajesh Somnath Nerkar.
- What
- The court dismissed the Trust’s challenge and upheld payment of ₹11,67,785 in gratuity, along with 10% interest and ₹1 lakh in costs.
- Where
- The case was decided by the Bombay High Court in Mumbai.
- When
- Justice Sandeep Marne issued the decision on September 1, 2026; the report is dated September 2, 2026.
- Why
- The court found that notices had been properly served, the Trust had not challenged the gratuity order within the statutory period, and it had not issued the mandatory notice needed to forfeit gratuity.
Former Employee’s Position
Trust’s Position
Entitlement to gratuity
Former Employee’s Position
Nerkar was entitled to gratuity for his 23 years of service, and the Controlling Authority ordered payment of ₹11,67,785 plus interest.
Trust’s Position
The Trust argued that Nerkar’s gratuity could be forfeited because he allegedly shredded original membership records and caused losses of ₹5 crore.
Validity of the proceedings
Former Employee’s Position
The court held that notices had been duly served through the Trust’s Administrative Manager.
Trust’s Position
The Trust claimed that it had not been properly served with notices during the gratuity proceedings.
Court challenge
Former Employee’s Position
The court said the Trust had several legal opportunities and could not later bypass the statutory remedy by directly approaching the High Court.
Trust’s Position
The Trust challenged the November 2025 gratuity order before the Bombay High Court.
Key facts
- Former employee
- Rajesh Somnath Nerkar, a former manager of the Breach Candy Swimming Bath Trust
- Length of service
- 23 years
- Gratuity amount
- ₹11,67,785
- Interest
- 10%
- Legal costs
- ₹1 lakh
- Payment deadline
- Within six weeks
- Termination date
- July 2, 2023
Quotes
Justice Sandeep Marne
Bombay High Court judge who heard the Trust’s gratuity challenge
“Merely because there are disputes between the two managing committees, the same does not mean that the Respondent should be denied gratuity for the 23 long years of service rendered by him.”
freepressjournal.in
“The legislative intent is not to permit the errant employer to keep the employee under long litigation.”
freepressjournal.in
Sources
Related news
ITAT rules in taxpayer's favour on ₹79.25 lakh gratuity deduction
Bombay High Court Seeks State Reply On Hotel Pawan Claim
Telangana Rights Panel Acts Over Retired Engineer’s Delayed Salary
Mumbai Court Upholds Dismissal of Sunny Leone Commission Case
Gurugram gym members win Rs 25,500 in overcrowding consumer case
