Citation : 2026 Latest Caselaw 2439 Guj
Judgement Date : 17 April, 2026
NEUTRAL CITATION
C/SCA/4779/2020 JUDGMENT DATED: 17/04/2026
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 4779 of 2020
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR. JUSTICE MAULIK J.SHELAT
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Approved for Reporting Yes No
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PRAFULSINH KHENGARJI JADEJA
Versus
STATE OF GUJARAT & ANR.
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Appearance:
MS PRACHI UPADHYAY FOR MR VAIBHAV A VYAS(2896) for the
Petitioner(s) No. 1
MS FORUM SUKHADWALA, AGP for the Respondent(s) No. 1,2
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CORAM:HONOURABLE MR. JUSTICE MAULIK J.SHELAT
Date : 17/04/2026
JUDGMENT
1. Rule returnable forthwith. Ms.Forum Sukhadwala, learned AGP, waives service of Rule on behalf of the State- respondents.
1.1 With the consent of the learned advocates for the respective parties, the present matter is taken up for hearing.
2. Heard Ms.Prachi Upadhyay, learned advocate for Mr.Vaibhav Vyas, learned advocate for the petitioner and Ms.Sukhadwala, learned AGP appearing for the State- respondents.
NEUTRAL CITATION
C/SCA/4779/2020 JUDGMENT DATED: 17/04/2026
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3. The present petition is filed under Article 226 of the Constitution of India, seeking the following reliefs :
"(A) Direct the respondent authorities to make payment of Leave Encashment to the petitioner as per his entitlement, along with interest at the rate which the Honourable Court may consider as just and proper in the facts and circumstances of the case, and
(B) Direct the respondent authorities to make payment of transfer allowance to the petitioner, upon his transfer from Kutch to Banaskantha as per the entitlement of the petitioner, along with interest at the rate which this Honourable Court may consider as just and proper in the facts and circumstances of the case, and (C) Pending admission and final disposal of this petition the Honourable Court may be pleased to direct the respondent authorities to consider the case to the petitioner for the payment of Leave Encashment and Transfer Allowance as per the Rules and the Policy of the Government, and
(D) Award the cost of this petition, and"
4. At the outset, Ms. Sukhadwala, learned AGP, has drawn the attention of this Court that during the pendency of this petition, the amount of leave encashment and travelling allowance both have been paid to the petitioner and as such, nothing survives in this petition.
5. Per contra, Ms.Upadhyay, learned advocate for the petitioner, would also confirm the aforesaid fact, but would submit that as per the instructions of her client, while making the payment towards leave encashment, there is a shortfall of around 23 days of earned leave. It is also submitted that the petitioner retired from service on 31.10.2018, whereas payment towards leave encashment was paid to the petitioner in the month of May 2020; therefore, the petitioner is entitled to receive interest for such delayed payment.
NEUTRAL CITATION
C/SCA/4779/2020 JUDGMENT DATED: 17/04/2026
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6. Having heard the learned advocates for the respective parties and upon perusal of the pleadings, it has come on record that during the pendency of this petition, the amounts towards leave encashment and travelling allowances were paid to the petitioner. Nonetheless, the same have been paid belatedly. I have minutely gone through the reply submitted by the respondents, wherein the only reason stated for the delay in payment is administrative lapses. The relevant para 7 of the affidavit-in-reply filed on behalf of respondent No.2 reads thus:
"7. In Reference to the Ground as stated in Para 4(a) of the petition, I say and submit that the allegations made in this paragraph are denied to the extent they impute illegality, arbitrariness, or discrimination on part of the respondent authorities. It is submitted with utmost respect that the delay in disbursal of Leave Encashment was solely attributable to administrative lapses arising out of delayed submission of requisite bills by the concerned subordinate office, and not due to any deliberate or mala fide act of omission or commission by the respondent."
7. Once it has been admitted by the respondents that due to administrative lapses there was a delay in making payment of retirement benefits like leave encashment, the petitioner is entitled to receive interest for the delayed payment. As per the settled position of law, on retirement, the employee concerned is entitled to receive all retirement benefits including pension and in case of any inordinate delay without any just cause, in such an eventuality, the employee concerned is entitled to receive interest. (See : D.D. Tewari (D) Thr. Lrs vs Uttar Haryana Bijli Vitran Nigam Ltd - (2014) 8 SCC 894).
NEUTRAL CITATION
C/SCA/4779/2020 JUDGMENT DATED: 17/04/2026
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8. So far as the grievance of the petitioner that there is still non-payment of leave encashment for 23 days is concerned, according to my view, without further deliberating upon such issue, it can be observed that if she so desires, the petitioner may make a suitable representation to the respondent authority with appropriate details. In a case where such representation is received from the petitioner, the respondents are hereby directed to decide the same in accordance with law within a period of one month from the date of receipt of such representation.
9. In view of the foregoing discussion and reasons, the respondents are hereby directed to pay 6% p.a. interest on the amount of leave encashment, i.e., Rs.3,80,068/-, from 01.11.2018 to 13.05.2020, as it appears that the said amount was credited to the account of the petitioner on 13.05.2020. The aforesaid amount of interest shall be paid to the petitioner within four weeks from today.
10. In view of the above, the present petition is partly allowed. Rule is made absolute, to the aforesaid extent. There shall be no order as to costs.
(MAULIK J. SHELAT, J) GAURAV J THAKER
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