State Of Gujarat Through Deputy ... vs Ishwarbhai Veljibhai Bhalgama
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Gujarat High Court

State Of Gujarat Through Deputy ... vs Ishwarbhai Veljibhai Bhalgama on 23 April, 2026

                                                                                                           NEUTRAL CITATION




                            C/SCA/5755/2026                                 ORDER DATED: 23/04/2026

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                                  IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                                    R/SPECIAL CIVIL APPLICATION NO. 5755 of 2026

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                           STATE OF GUJARAT THROUGH DEPUTY EXECUTIVE ENGINEER
                                                  Versus
                                      ISHWARBHAI VELJIBHAI BHALGAMA
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                     Appearance:
                     MR MANOHARSINH RAHEVAR AGP for the Petitioner(s) No.1
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                          CORAM:HONOURABLE MR. JUSTICE ANIRUDDHA P. MAYEE

                                                        Date : 23/04/2026

                                                         ORAL ORDER

1. By the present Writ Petition, the petitioner has impugned the order dated 19.06.2025 passed by the learned Labour Court, Morbi in the Recovery Application 33(C)(1) No.356 of 2024, whereby the learned Labour Court has awarded the interest on the amount of leave encashment payable to the respondent workman in terms of the order dated 22.03.2024.

2. The learned AGP Mr. Manoharsinh Rahevar appearing for the petitioner submits that the learned Labour Court has failed to consider the Government Resolution dated 28.08.2023 issued by the Finance Department, Government of Gujarat, wherein it has been stated that before granting the benefit of leave encashment, if any court proceedings are pending, then, an undertaking has to be obtained from the workman that he shall withdraw the pending case and thereafter only, the benefit has to be granted. The learned AGP submits that in the present case, the respondent workman had

NEUTRAL CITATION

C/SCA/5755/2026 ORDER DATED: 23/04/2026

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given an undertaking on 09.11.2023 and pursuant thereto, he has not withdrawn the recovery proceedings being Recovery Application No.2 of 2021 pending before the learned Labour Court, Morbi. The learned AGP submits that the respondent workman has already been granted the benefit of leave encashment of 300 days and therefore, he is not entitled to any interest thereon as awarded in the impugned order of the learned Labour Court. He, therefore, submits that the impugned order be set aside in view of undertaking given by the respondent workman and further that the amount of leave encashment having been paid to the respondent workman.

3. Heard the learned AGP for the petitioner, considered the submissions and perused the documents on record.

4. The facts in the present case reveal that the Finance Department, Government of Gujarat had issued the Government Resolution dated 28.08.2023, wherein it is stated that if any court proceedings are pending in respect of leave encashment benefit, then the Department has to pay the said benefit after obtaining an undertaking from the workman that he shall withdraw such court proceedings. In the present case, the respondent workman had given an undertaking on 09.11.2023 in terms of the Government Resolution dated 28.08.2023 since the recovery proceedings being Recovery Application No.2 of 2021 was pending in the learned Labour Court, Morbi for the payment of leave encashment benefit. The petitioner had not paid the said amount to the respondent workman till passing of the order dated 22.03.2024 in the Recovery Application No.2 of 2021. As per the said order, the learned Labour Court has directed the petitioner to pay the leave encashment benefit along with 6% interest from the date of the application, i.e.

NEUTRAL CITATION

C/SCA/5755/2026 ORDER DATED: 23/04/2026

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04.01.2021. Admittedly, the leave encashment benefit has been paid on 28.03.2024. Therefore, in the considered opinion of this Court, the respondent workman was required to act in terms of the undertaking only after the payment of leave encashment amount by the petitioner so as to prevent double payment from the Department. Since the order dated 22.03.2024 in the Recovery Application No.2 of 2021 came to be passed before the payment of leave encashment amount by the petitioner to the respondent workman, the same was binding upon the petitioner and therefore, the petitioner was liable to pay the interest @ 6% per annum from the date of the application till the date of actual payment. By the impugned order dated 19.06.2025, the learned Labour Court, Morbi has only implemented the order dated 22.03.2024 passed in the Recovery Application No.2 of 2021. No infirmity can be attached to the impugned order. The impugned order is just and proper.

5. The Special Civil Application is devoid of merits and is accordingly dismissed. No order as to costs.

6. The impugned order shall be complied with by the petitioner within a period of six weeks from today.

(ANIRUDDHA P. MAYEE, J.)

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