Vijay Kumar And Ors. vs U.O.I.Thru.Secy. And Chairman ...
2023 Latest Caselaw 13896 ALL

HIGH COURT OF JUDICATURE AT ALLAHABAD, LUCKNOW BENCH
 
 

?Court No. - 17
 

 
Case :- WRIT - A No. - 18726 of 2021
 

 
Petitioner :- Vijay Kumar And Ors.
 
Respondent :- U.O.I.Thru.Secy. And Chairman Deptt.Of Telecommunication And Ors
 
Counsel for Petitioner :- Santosh Kumar Shukla,Mayur Gautam
 
Counsel for Respondent :- A.S.G.,Deep Mala Shukla,Krishna Chandra Srivastav
 

 
Hon'ble Pankaj Bhatia,J.

Heard learned counsel for the petitioners; Shri Anand Dwivedi, learned counsel appearing for respondent no.1/Union of India and Sri Pankaj Pandey holding brief of Sri Krishna Chandra Srivastava, learned counsel appearing for respondent no.3.

Contention of learned counsel for the petitioners is that although the petitioners have been paid the leave encashment, the interest on delay has not been paid and thus, they are entitled to interest from the date of retirement till actual payment.

Learned counsel for the respondent argues that a circular has been issued by respondent no.2 saying that no interest shall be paid on the delayed payment of leave encashment as it is not a statutory payment.

In the light of the said, learned counsel for the respondent argues that no interest is payable as demanded by the petitioners.

Learned counsel for the petitioners places reliance on the judgment of this Court in the case of Nand Lal v. Indian Telephone Industries Limited and 2 Ors. (Writ - A No.31490 of 2016) decided on 09.03.2018 wherein a similar issue was considered and decided by this Court and the interest was held to be payable on account of delay.

Considering the fact that the decision has been taken only on the ground that the dues of leave encashment are not statutory dues, as such, no interest is payable, the same is liable to be rejected on the simple analogy that interest is a natural accreditation of capital. Even otherwise, the payment of leave encashment flows out of the decisions taken and thus, cannot be said that it has no flavour of statutory enactment.

Thus, following the judgment in the case of Nand Lal (Supra), the writ petition is allowed.

Respondents are directed to ensure payment of interest at the rate of 7% per annum on the leave encashment from the date of retirement till actual payment/ realization.

The said interest shall be paid to the petitioners within a period of four months.

Order Date :- 2.5.2023

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