Citation : 2023 Latest Caselaw 5732 Mad
Judgement Date : 8 June, 2023
W.P.No.32526 of 2016
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 08.06.2023
CORAM
THE HONOURABLE MR.JUSTICE P.B.BALAJI
W.P.No. 32526 of 2016
C.B.Ranganathan ... Petitioner
Versus
1.Government of Tamil Nadu,
Rep. by its Special Commissioner and Secretary to Government
Animal Husbandry and Fisheries Department
Fort St George
Chennai 600 009.
2.The Managing Director
Tamil Nadu Co-Operative Milk Producers Federation Limited
Aavin Illam
Madhavaram Milk Colony
Chennai 600 051. ... Respondents
PRAYER: Writ Petition is filed under Article 226 of the Constitution of
India, prays to issue a Writ of Mandamus, directing the 1 st respondent to
settle the encash value of 52 days earn leave with interest at the rate of 8%
per annum from the date when it became payable till the date of payment in
terms of the orders passed in W.A.No.320 of 2011 dated 25.06.2012.
For Petitioner : M/s.S.Kavya
for Mr.Balan Haridas
For Respondents :Mr.T.Chezian
Additional Government Pleader for R1
Mr.V.Selvaraj for R2
1/5
https://www.mhc.tn.gov.in/judis
W.P.No.32526 of 2016
ORDER
This writ petition has been filed to direct the 1st respondent to settle the
encash value of 52 days earned leave with interest at the rate of 8% per
annum, from the date when it became payable, till the date of payment, in
terms of the orders passed in W.A.No.320 of 2011 dated 25.06.2012.
2. The case of the petitioner is that he joined the service on 01.06.1973
as a Dairy Supervisor in the Dairy Development Department. Thereafter, he
was transferred on deputation to the Tamil Nadu Dairy Development
Corporation Limited which was converted to a Co-Operative Federation/2nd
respondent Federation. Accordingly, he was also transferred on deputation to
the 2nd respondent Federation. The 1st respondent had issued a
G.O.Ms.No.1921 Agriculture (MP1) Department dated 08.11.1983 regarding
the encashment of earned leave. As per the G.O, the employee would be paid
cash equivalent to 50% of the quantum of the earned leave on the date of
absorption and the balance of 50 % would be transferred to the 2 nd
respondent Federation and would be paid by the 2 nd respondent. According to
the petitioner, the petitioner had 103 days of earned leave at the time of
https://www.mhc.tn.gov.in/judis W.P.No.32526 of 2016
absorption and 50% of the same was encashed and the balance 52 days
earned leave had to be encashed at the time of retirement. But, the 2nd
respondent had not paid the same. With the said specific grievance, the writ
petitioner approached this Court by way of filing this writ petition.
3. The 2nd respondent has filed a counter stating that the 2 nd respondent
federation had issued a circular in Ref.No.20320/Accts.1-1/91 dated
04.01.1993 and thereby issued instructions for calculation of quantum of
Earned Leave Encashment eligible to employees in the 2nd respondent
federation. He would also submit that only on the basis of the above said
circular, all terminal benefits were settled and therefore, there is no merit in
the writ petition and sought for dismissal of the same.
4. This Court has perused the order of Hon'ble Division Bench of this
Court in W.A.No.320 of 2011 dated 25.06.2012. The Hon'ble Division Bench
relying on G.O.Ms.1921 dated 08.11.1993 and also the circular in
Ref.No.20320/Accts.1-1/91 dated 04.01.1993 and G.O.MS.No.999 P& AR
Department dated 30.10.1987, held that the circular cannot supersede the
G.O.Ms.1921 dated 08.11.1993 which specifically speaks of earned leave
https://www.mhc.tn.gov.in/judis W.P.No.32526 of 2016
salary being paid to the employees, who were absorbed in the Tamil Nadu
Co-operative Milk Producers Federation. In fact, a learned Single Judge had
dismissed the writ petition and the said order was revised in appeal and held
that the petitioner is entitled for remaining 50% with 8% per annum interest.
Aggrieved over the same, the respondent had filed a Special leave petition
and the same was also dismissed, confirming the judgment of the Hon'ble
Division Bench. The facts of the present case are very similar to the facts of
the above said case which was decided by the Hon'ble Division Bench.
Hence, there is no difficulty in following the ratio laid down by the Hon'ble
Division Bench and allowing this writ petition.
5. Accordingly, this writ petition is allowed and the 1st respondent is
directed to settle the encash value of 52 days earned leave, with interest at the
rate of 8 % per annum from the date when it became payable, till the date of
payment within four weeks from the date of receipt of a copy of this order.
No costs.
08.06.2023
Index : Yes / No Internet: Yes Speaking/non speaking order nr
https://www.mhc.tn.gov.in/judis W.P.No.32526 of 2016
P.B.BALAJI, J.,
nr
To
1. The Special Commissioner and Secretary to Government Animal Husbandry and Fisheries Department Fort St George Chennai 600 009.
2.The Managing Director Tamil Nadu Co-Operative Milk Producers Federation Limited Aavin Illam Madhavaram Milk Colony Chennai 600 051.
W.P.No. 32526 of 2016
08.06.2023
https://www.mhc.tn.gov.in/judis
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