Madras High Court
K.Narayanan vs The Chairman And Managing ... on 15 June, 2021
W.P(MD)No.8499, 8501 & 8504 of 2021
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 15.06.2021
CORAM:
THE HONOURABLE MS.JUSTICE V.M.VELUMANI
W.P(MD)Nos.8499, 8501 & 8504 of 2021
K.Narayanan ... Petitioner in W.P(MD)No.8499/2021
K.Paulsamy ... Petitioner in W.P(MD)No.8501/2021
M.A.Michael Raj ... Petitioner in W.P(MD)No.8504/2021
vs.
1.The Chairman and Managing Director,
SIDCO, Thiru.V.Ka.Industrial Estate,
Guindy, Chennai – 600 032.
2.The Branch Manager,
SIDCO, Madurai. ... Respondents in all W.Ps'
COMMON PRAYER: Writ Petitions filed under Article 226 of the Constitution
of India for issuance of Writs of Mandamus, directing the respondents to
extend the benefit of encashment of unearned leave on private affairs for
the period of 90 days to the petitioners and to pay monetary benefits to the
petitioners with interest at the rate of 18% per annum payable from the
date of retirement of the petitioners to till the date of payment of the said
monetary benefits based on the scheme of unearned leave on private affairs
in accordance with G.O.Ms.No.488, Finance (Pension) Department, dated
https://www.mhc.tn.gov.in/judis/
W.P(MD)No.8499, 8501 & 8504 of 2021
12.08.1996 and Government letter No.37568/BPE/2006, dated 28.01.2008
within the time stipulated by this Court.
For Petitioner : Mr.K.Muthumalai
(In all W.Ps')
For Respondents : Mr.T.Sakthikumaran
(In all W.Ps')
COMMON ORDER
The petitioners have filed these Writ Petitions to direct the
respondents to extend the benefit of encashment of unearned leave on
private affairs for the period of 90 days to the petitioners and to pay
monetary benefits to the petitioners with interest in accordance with
G.O.Ms.No.488, Finance (Pension) Department, dated 12.08.1996 and
Government letter No.37568/BPE/2006, dated 28.01.2008.
2.According to the petitioners in W.P(MD)Nos.8499 & 8504 of 2020,
after rendering 30 years of service in the respondents-SIDCO Corporation,
they opted for voluntary retirement and allowed to retire from service on
31.04.2004 and 31.12.2003 respectively. Further, the petitioner in
W.P(MD)No.8501 of 2021, after rendering 35 years of service in the
respondents-Corporation, retired from service on attaining the age of
https://www.mhc.tn.gov.in/judis/
W.P(MD)No.8499, 8501 & 8504 of 2021
superannuation on 30.06.2006. At the time of their retirement, they were
paid with Gratuity, Encashment of Earned Leave and Exgratia payment. The
petitioners were not paid Encashment of unearned Leave on private affairs.
3.Further, according to the petitioners, by G.O.Ms.No.488, Finance
(Pension) Department, dated 12.08.1996, the Government employees, at
the time of retirement, were given the benefit of Encashment of 50% of the
leave on private affairs. Paragraph No.2(a) & (b) of the said Government
Order, reads as follows:-
“2.The Government have decided to accept the long
pending demand of various associations of employees to
surrender half pay leave on private affairs at the time of
retirement and also to grant full leave salary on
encashment of the entire earned leave at credit of retiring
employees. Accordingly, Government pass the following
orders:-
a.At the time of retirement, 50% of the leave on
private affairs standing to the credit of the employees upto
a maximum of 90 days, be entitled for full leave salary.
The head of office shall draw the leave salary on
encashment of leave on private affairs, as in the case of
encashment of earned leave; and
https://www.mhc.tn.gov.in/judis/
W.P(MD)No.8499, 8501 & 8504 of 2021
b.Full leave salary including dearness allowance and
other allowances normally admissible while going on leave
during service be allowed for the entire period of earned
leave encashment of the time of retirement.”
4.The said benefits granted to the Government employees were
extended to the employees of all statutory boards and the State public
sector undertakings, vide letter, dated 28.01.2008, by issuing certain
instructions by the Secretary to the Government, Finance (BPE)
Department.
5.According to the petitioners, the instructions given in the letter,
dated 28.01.2008, will take effect from the date of issuance of orders. In
view of the instructions in the Government letter, dated 28.01.2008, it is
applicable retrospectively from the date of issuance of G.O.Ms.No.488,
Finance (Pension) Department, dated 12.08.1996. The petitioners are
eligible to get encashment of unearned leave on private affairs and the right
to get encashment of unearned leave on private affairs is an accrued right.
Hence, the petitioners gave representations, dated 29.07.2019, 29.07.2019
and 27.09.2019 respectively to the first respondent. Since no action has
https://www.mhc.tn.gov.in/judis/
W.P(MD)No.8499, 8501 & 8504 of 2021
been taken on the side of the respondents, the petitioners have come out
with the present Writ Petitions.
6.The learned counsel appearing for the petitioners submitted that the
petitioners are eligible to get encashment of unearned leave on private
affairs and the first respondent, ought to have paid the said amount to the
petitioners and relied on the Judgment of this Court in W.A.No.1352 of
2015, and etc., batch cases, dated 29.06.2016 [The Government of Tamil
Nadu, Rep. by its Secretary to Government, Environment and Forest
Department, Chennai and others Vs. P.Gurusami].
7.Heard the learned counsel appearing for the petitioners and the
learned counsel appearing for the respondents.
8.From the materials available on record, it is seen that earlier to
G.O.Ms.No.488, Finance (Pension) Department, dated 12.08.1996, the
Government servant was entitled to encashment of entire earned leave
subject to maximum of 240 days standing to the credit of the employees.
There is no provision for encashment of earned leave on private affairs.
Only by G.O.Ms.No.488, Finance (Pension) Department, dated 12.08.1996,
https://www.mhc.tn.gov.in/judis/
W.P(MD)No.8499, 8501 & 8504 of 2021
the Government servants were given the benefits of encashment of 50% of
the leave on private affairs standing to their credit upto a maximum of 90
days. The said benefit was given only to the Government employees.
Subsequently, by letter, dated 28.01.2008, the said benefit was extended to
the employees of all State public sector undertakings/Boards. In paragraph
No.4 of the said letter, it is made clear that “these instructions will take
effect from date of issue of orders”. Therefore, the extension of benefits
given to the employees of all statutory boards and public sector
undertakings will be prospective in nature and it has no retrospective effect.
The interpretation given by the petitioners is that the benefits extended by
the letter, dated 28.01.2008, has retrospective effect from the date of
issuance of G.O is contrary to paragraph No.4 of the said letter, dated
28.01.2008. The Judgment relied on by the learned counsel for the
petitioners in W.A.No.1352 of 2015 and etc., batch cases, dated 29.06.2016
is not applicable to the facts of the present case. The present issue was not
an issue before the Division Bench of this Court in W.A.No.1352 of 2015 and
etc., batch cases and the Division Bench of this Court did not give any
finding that the letter, dated 28.01.2008, has retrospective effect. When the
petitioners in W.P(MD)Nos.8499 & 8504 of 2020, retired on 31.04.2004 and
31.12.2003 respectively, on voluntary retirement and the petitioner in
https://www.mhc.tn.gov.in/judis/
W.P(MD)No.8499, 8501 & 8504 of 2021
W.P(MD)No.8501 of 2021 retired from service on attaining the age of
superannuation on 30.06.2006, the scheme of encashment of earned leave
on private affairs was not in force and therefore, the petitioners are not
entitled to the said benefit.
9.For the above reasons, these Writ Petitions are dismissed. No costs.
15.06.2021
Index : Yes / No
Internet : Yes / No
ps
Note :
In view of the present lock down
owing to COVID-19 pandemic, a
web copy of the order may be
utilized for official purposes, but,
ensuring that the copy of the order
that is presented is the correct
copy, shall be the responsibility of
the advocate / litigant concerned.
https://www.mhc.tn.gov.in/judis/
W.P(MD)No.8499, 8501 & 8504 of 2021
V.M.VELUMANI,J.
ps
To
1.The Chairman and Managing Director,
SIDCO, Thiru.V.Ka.Industrial Estate,
Guindy, Chennai – 600 032.
2.The Branch Manager,
SIDCO, Madurai.
W.P(MD)Nos.8499, 8501 & 8504 of
15.06.2021
https://www.mhc.tn.gov.in/judis/
