Look sir
as per the submission given by you that one of your elder brother was working in a public sector unit and has been resigned in the year of 2006 and now the position of the company is not well in financially.
That as per my advice and experience the gratuity is the basic right of the employee for whom the company was detecting from the salary of the employee and as per terms and conditions this is the duty of the employer to refund back the gratuity to the concern employee after the retirement however in your case the aforesaid company is not going well in financial condition but this is not ground to a stop the gratuity of the employee. and after the retirement the employee can claim his gratuity, Provident fund, ESI contribution if any and any other benefits which is under the obligations to the concerned company to pay to the employee who had given his very important part of life to the company with full of honesty and punctuality.
That in your case the company says that they have had just your gratuity in the arrear but this is not the fair practice and violation of the rules and anybody can claim to the concern court or any appropriate authority the this is challengeable of and claim the same.
Nobody can stop the gratuity of the person besides when they is any enquiry or any complaint pending against that person who is claiming the thing.