Gratuity can’t be attached

The Calcutta High Court recently ruled that United Bank of India cannot attach the gratuity payable to its employee for recovery of housing loan sanctioned to him. Gratuity under the Payment of Gratuity Act had immunity and the bank can not adjust that amount for arrears of the housing loan.

Upholding the order of the single judge, the division bench characterised the bank’s action in depositing the amount in a frozen account as “sharp practice” and deprecated it.